In addition, emerging markets could be a major engine of global economic growth over the next few decades and offer Canadian investors attractive long-term growth prospects. Investors looking to capitalize on strong consumer trends in key markets, particularly Asia, that index-based emerging markets strategies may overlook may consider the recently launched Horizons Emerging Markets Leaders ETF (HEMC).
Semiconductor: By now we have all heard that one of the leading causes of inflation and supply chain bottlenecks is global semiconductor shortages. The US government under President Joe Biden announced earlier this year that it would allocate US $ 50 billion to expand the domestic production of semiconductor chips.
In June 2021, Horizons ETFs launched Canada’s first semiconductor ETF: the Horizons Global Semiconductor Index ETF (TSX: CHPS), which holds around 50 companies, including NVIDIA Corp., Taiwan Semiconductor Manufacturing Co., Intel Corp., Texas Instruments Inc. and Qualcomm Inc. to name a few.
Raw materials: It can make sense to have commodities like gold and crude oil in your portfolio to counter the effects of rising inflation. Commodities can also be negatively correlated to stocks, which provides investors with protection against falling markets. Investors can add physical gold, invest directly in gold stocks, or invest in a gold ETF.
Investors can also consider investing money in commodity futures such as crude oil or natural gas to take advantage of these soaring prices. And yes, that’s what ETFs are for.
Corporate bonds: If you’re kept awake at night by rising interest rates, it’s time to dive into the world of corporate bonds. Although riskier than long-term government bonds, corporate bonds could hold up better as interest rates rise because of their higher yields.
Bonds don’t excite anyone these days, but short-term corporate bonds have outperformed aggregate bonds, long-term bunds, and short-term government bonds this year. And they should be ready to continue to outperform if rates continue to tick up. The Horizons Active Ultra-Short Term Investment Grade Bond ETF (HFR) is a premium corporate bond ETF designed to deliver higher returns when interest rates rise, which seems ideal for this situation.
What exploration investments mean for investors right now
Investors these days are right to be concerned about the markets. The COVID-19 pandemic has caused unprecedented disruption in the global economy. We have never seen this movie before so we don’t know how it will end.