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Join the Wall Street Rally in 2022 With These ETFs

Published 01/03/2022, 05:00 AM
Updated 07/09/2023, 06:31 AM

The year 2021 ended with investors cheering the stupendous Wall Street rally in the year. Though volatile, the market ended the last month of 2021 in the green, registering the fifth consecutive monthly rise for the Dow Jones Industrial Average and six-month winning streak for the tech-heavy Nasdaq Composite index.

Going on, the S&P 500 index jumped 26.9% in 2021, highlighting the benchmark’s third consecutive positive year. The Dow Jones Industrial Average and the Nasdaq Composite index also gained 18.7% and 21.4% for 2021, respectively. Notably, Devon Energy (NYSE:DVN) stood out as the top-performing stock on the S&P 500 in 2021, with a 178.6% rise. The stock was followed by a more than 140% rise in Marathon Oil (NYSE:MRO) and Moderna (NASDAQ:MRNA) last year. Ford also clinched a spot among the S&P 500′s best performers in 2021, jumping 136.3% for its biggest annual increase since 2009.

Dow Jones Industrial Average saw stellar performances from The Home Depot, Inc. (NYSE:HD) and Microsoft (NASDAQ:MSFT) that returned more than 50% in 2021. Meanwhile, major tech players like Alphabet (NASDAQ:GOOGL) (GOOG), Apple (NASDAQ:AAPL), Meta Platforms (FB) and Tesla (NASDAQ:TSLA) contributed to the rally in Nasdaq Composite in 2021.

We have stepped into 2022 with a set of concerning issues like the Omicron variant-related uncertainty and the chances of the Federal Reserve hiking rates multiple times this year to tackle the rising inflation levels. However, the accelerated levels of the coronavirus vaccine rollout and strongly rebounding U.S. economy from the pandemic-led slowdown should support the market sentiments.

ETFs to Ride the Wave

Investors who seek to capitalize on the strong trends should consider the following ETFs:

SPDR S&P 500 ETF Trust SPY

SPDR S&P 500 ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the S&P 500 Index.

SPDR S&P 500 ETF Trust has a total expense ratio of 0.09%, with AUM of $455.03 billion (read: 5 Most Loved ETFs of 2021).

iShares Core S&P 500 ETF IVV

iShares Core S&P 500 ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities.

iShares Core S&P 500 ETF has AUM of $335.95 billion and total expense ratio is 0.03%.

SPDR Dow Jones Industrial Average (NYSE:DIA) ETF Trust DIA

SPDR Dow Jones Industrial Average ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the Dow Jones Industrial Average.

SPDR Dow Jones Industrial Average ETF Trust charges an expense ratio of 0.16%, with AUM of $30.36 billion (read: Best-Performing ETFs of Fourth Quarter).

iShares MSCI USA Momentum Factor ETF MTUM

iShares MSCI USA Momentum Factor ETF provides exposure to large and mid-cap stocks that exhibit relatively higher price momentum by tracking the MSCI USA Momentum SR Variant Index.

iShares MSCI USA Momentum Factor ETF charges 15 basis points (bps) in fees per year along with AUM of $14.85 billion (read: Grab These Momentum ETFs to Ride the Year-End Santa Rally).

Invesco QQQ QQQ

Invesco QQQ provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq-100 Index.

Invesco QQQ has AUM of $217.21 billion and charges investors 20 bps in annual fees.

Fidelity Nasdaq Composite Index ETF ONEQ

Fidelity Nasdaq Composite Index ETF seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index.

Fidelity Nasdaq Composite Index ETF has AUM of $4.91 billion and the expense ratio comes in at 0.21% (read: Guide to the Nasdaq ETF Investing).


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Invesco QQQ (QQQ): ETF Research Reports

SPDR S&P 500 ETF (SPY): ETF Research Reports

SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports

iShares MSCI USA Momentum Factor ETF (MTUM): ETF Research Reports

iShares Core S&P 500 ETF (IVV): ETF Research Reports

Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports

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Zacks Investment Research

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