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Are you looking to start investing in 2022? These are the 3 Best ETFs You Should Buy


exchange traded funds

If you’re looking to start investing in 2022, now is an excellent time to buy some of the best investments, including several Canadian ETFs.

For years, the investing industry has seen tonnes of innovation, making it easier to begin investing, even with little knowledge and cash.

ETFs, for example, are some of the best tools for investors, offering a portfolio of stocks that give you natural diversification and often cost less than 1% annually in fees.

The key is to make sure that in addition to finding the best ETFs to buy that have potential in the short term, you also find high-quality investments that you can own long term.

And right now, after the market selloff over the last week, there are plenty of opportunities for investors. So, if you’re looking for some of the best ETFs to buy for 2022 and beyond, here are three to consider.

A top Canadian real estate ETF

There’s no question that investing in the real estate sector is one of the best long-term investments you can make. And while there are tonnes of different real estate stocks to consider, another way to gain exposure to the sector is through iShares S&P/TSX Capped REIT Index ETF (TSX:XRE).

The fund holds several high-quality Canadian REITs, including Canadian Apartment Properties, the largest residential REIT in Canada, and Granite REIT, one of the fastest-growing industrial REITs.

The ETF is an excellent way for Canadians to own a diversified portfolio of some of the best Canadian real estate assets, which is why it’s one of the best to buy for 2022.

And while the yield is currently only 2.7%, many of these REITs the fund owns will earn investors more growth than passive income, allowing the distributions to continue growing consistently over the long run.

If you’re looking to start investing and find some of the best Canadian ETFs to buy for 2022, XRE is one I’d certainly consider.

Bank ETFs could be some of the best to buy in 2022

In addition to real estate ETF, a bank ETF such as BMO Equal Weight Banks Index ETF (TSX:ZEB) certainly has the potential to be one of the best buys of 2022.

With interest rates slated to increase this year, banks have a tonne of potential to see their margins expand, making them some of the best stocks to consider buying today.

Even over the last week, as stocks (particularly high-growth stocks) that will be negatively impacted by inflation have sold off, the ZEB ETF has gained 4%.

The fund offers investors roughly equal exposure to each of the Big Six banks in Canada. And right now, it pays a dividend yield of 3%.

So, if you’re looking to find a high-quality investment that should perform well in 2022 but that you can also have confidence in owning for the long haul, then the ZEB ETF is one of the best to buy now.

A top ETF to buy for growth investors

If you’re a growth investor, there are plenty of different options to consider. You could buy an ETF that specifically targets growth stocks. You could buy an emerging markets ETF. Or you could even target a specific sector, such as buying a tech stock ETF.

But right now, one of the best ETFs to buy for 2022 is Vanguard Growth ETF Portfolio (TSX:VGRO). Unlike the bank ETF, which offers investors exposure to just six stocks total, the VGRO ETF offers investors exposure to more than 13,000 stocks and over 17,000 bonds.

Roughly 80% of its portfolio is made up of stocks, including high-quality Canadian, American, and emerging market equities, which is why it’s one of the best ETFs you can buy in 2022 and hold for years.

The VGRO ETF also demonstrates the potential investors have to gain exposure to high-quality companies outside Canada by investing in ETFs. Diversifying your capital among stocks and ETFs is one thing, but you also want to diversify your money geographically.

So, if you’re looking for a high-quality ETF to buy and hold for years, Vanguard Growth ETF is an excellent choice.

The post Looking to Start Investing in 2022? Here Are 3 of the Best ETFs to Buy appeared first on The Motley Fool Canada.

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  • The 3 Best ETFs for High Growth in Canada
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  • Got $2,000? 1 Top Canadian ETF to Fight Inflation
  • Baby Boomers: 3 High-Dividend ETFs for a Rich Retirement

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST.

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By: Daniel Da Costa
Title: Looking to Start Investing in 2022? Here Are 3 of the Best ETFs to Buy
Sourced From: www.fool.ca/2022/01/11/looking-to-start-investing-in-2022-here-are-3-of-the-best-etfs-to-buy/
Published Date: Tue, 11 Jan 2022 20:00:00 +0000

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