Investors may be searching for the most promising industries in 2022. One method to get exposure to a variety of companies in one sector is to buy ETFs, or exchange-traded funds.
Here is a look at five ETFs that could have a strong predicted performance in 2022.
Defiance Hotel, Airline and Cruise (NYSEA: CRUZ)
Launched on June 2, the Defiance Hotel, Airline and Cruise ETF targets the travel reopening trade by investing in several sectors that could benefit from the loosening of travel restrictions. COVID-19 is said to have cost the travel industry more than $3.3 trillion in lost revenue, according to the ETF. The sectors covered by the fund are expected to benefit from increased travel desire.
The ETF has 43 holdings, with top holdings including:
- Marriott International (NASDAQ: MAR)
- Hilton Worldwide Holdings (NYSE: HLT)
- Carnival Corp (NYSE: CCL)
- Delta Air Lines Inc (NYSE: DAL)
- Southwest Airlines (NYSE: LUV)
Roundhill Sports Betting & iGaming (NYSEA: BETZ)
Sports betting will likely be a huge moneymaker for many years to come, as more states approve it. Stocks in the industry may benefit from good college football and NFL seasons. In 2021-2022, the sports will also have more games to wager on, including preseasons and additional college matches, which may lead to a larger betting handle.
The Roundhill Sports Betting & iGaming ETF is a pure-play ETF that invests in stocks of companies involved with sports books, online gaming operations, or the technology that drives these two industries. The ETF holds 40 equities from 13 nations and has celebrated its one-year anniversary. Top holdings in the ETF include:
- Entain (LSE: ENT.L)
- Scientific Games Corp (NASDAQ: SGMS)
- Pointsbet (ASX: PBH.AX)
- Kindred Group (KIND-SDB.ST)
- Flutter Entertainment (LSE: FLTR.L)
Investors are able to access a wide range of foreign firms that do not trade in the United States or OTC. Other top-10 holdings include:
U.S. Global Jets ETF (NYSEA: JETS)
An ETF that tracks the worldwide airline sector might allow investors to profit from an expected rise in passengers throughout the last few months, which might continue throughout 2022.
The ETF has 39 holdings with the top four holdings representing almost 40% of assets. Top holdings include:
- Delta Air Lines (NASDAQ: DAL)
- United Airlines Holdings (NASDAQ: UAL)
- Southwest Airlines (NASDAQ: LUV)
- American Airlines Group (NASDAQ: AAL)
- Hawaiian Holdings (NASDAQ: HA)
The ETF has had a 20% year-to-date increase, but it may grow even more as a pure play method to obtain exposure to the airline industry's growth.
Procure Space ETF (NASDAQ: UFO)
The Procure Space ETF is a pure play space economy ETF that might be worth keeping an eye on in 2022. The fund took the market by storm when it debuted in 2019, with 36 holdings generating half of their revenue from space-related stocks. Top holdings in the ETF include:
- Globalstar Inc (NYSE: GSAT)
- Virgin Galactic Holdings (NYSE: SPCE)
- Maxar Technologies Inc (NYSE: MAXR)
- Iridium Communications Inc (NASDAQ: IRDM)
Reusable rockets are lowering launch costs in the space business, allowing it to grow. According to fund manager Andrew Chanin, this lowers the price for firms to use space because it spreads out the cost. “That opens up tremendous business opportunities."
Global X FinTech (NASDAQ: FINX)
The Global X FinTech ETF is an ETF that focuses on the development of new financial technology. The fund, which was created in 2016, currently has 55 percent of its assets from U.S. firms and the remainder from international corporations. Top holdings in the ETF include:
- Square Inc (NYSE: SQ)
- Paypal Holdings (NASDAQ: PYPL)
- AfterPay (ASX: APT.AX)
- Intuit Inc (NASDAQ: INTU)
The ETF is up over 40% in the last 52 weeks but was up less than 3% year-to-date. The ETF could see a rebound in 2022, as it has seen an increase of 8% in the last 3 months.