Best ETF’s to Buy for Long Term Growth
Looking at the remainder of 2021 and going into 2022 and beyond there are some ETFs worth buying and holding for the long haul. We should always keep life simple and put our money to work in smart simple ways. When I sit back and look at positions to add to my portfolio I see two ETFs, and a leveraged ETF that might be worth a swing trade. The ETF’s I see worth adding positions for the future are $PHO Invesco Water Resources ETF, and $BUG FDS Global X CYBERSECURITY ETF. The trade I would be looking at would be $SOXL a Semiconductor leveraged ETF.
1. PHO You ever thought about investing in clean water and its infrastructure? This is the ETF for just that. Without water life would cease to exist. This ETF will put some of my favorite stocks in your portfolio like DHR which I am already invested in through PRHSX and PRDGX. Search droughts in whatever search engine you use and look at the latest news. No one knows what our water supplies will look like in ten years but if I speculate there will always be a demand for it and will increase as water supplies decrease. That is a situation no one wants, but if it happens, I would like to be invested in the companies we are going to rely on for clean water. That will allow me to afford some in the future. The chart on this ETF is screaming breakout and buy on any pullback. It is up 26% YTD and looks like it has plenty of room to run. I like the long-term growth outlook of this ETF and every company that is part of it.
2. BUG When you think about the future, warfare, the state of our country and others I think of cyber security. What if those companies in PHO get hacked and all the water supplies get cut off or ruined? Power grids get cut off, or many other things that could devastate a country nowadays just with technology. These companies have a lot to look forward to as far as growth. When I think of future protection for banks, utility companies and many others including government secrets I think of cyber security. This ETF has pulled back into the oversold area which makes it a good entry or adding opportunity. Neither BUG nor PHO has had the best performance over the last ten years, as all the mutual funds I own have outperformed, I feel like the next ten years could be a lot better for the two.
Swing Trade on tap?
SMH has pulled back to the oversold area once again and looks to be creating a great trading channel for SOXL. Last oversold to overbought trade could have produced an easy 20-25% profit within 16 trading days. Those are the type of trades I love to make and help give your portfolio a boost for the year. Trading is not for the faint of heart, you must be able to handle the pullbacks, average down if it goes lower, and hang onto the position until it is profitable. If you are one to cut ties and rack up losses, please stick to long-term investing with mutual funds and ETFs or your losses will compound not your gains. SMH is a great ETF to hold long term and if you believe that then SOXL is even better as your gains will only be 3x as much.