Fuel papers showed maximum growth at the end of the year. IEO Leader of the Year is the owner of a portfolio of the 50 largest oil and gas stocks in the USA. He made the best result in his history with almost 70% of the profit including dividends. Given the global shortage of energy resources, it should be assumed that the positive dynamics in the oil and gas sector will continue next year. This is relevant for DBO, which has made an increase of 60% without paying dividends by investing in oil with a portfolio of WTI futures.
In addition to the oil and gas industry, construction and real estate took a good position in 2021. ITB and REZ funds, working on investments at low rates and betting on the acceleration of inflation in the United States, managed to earn 48% and 44% on shares of developers and real estate trusts.
The US IT sector showed positive trends and provided 36% XLK growth. The same achievements were shown by IVW, working in the sector of technological papers. This situation persists for the third year in a row, but global trends point to changes brewing in the coming months. The financial segment remains the leader. This can be seen by the 33% increase in VFN and the like. The US Federal Reserve rate is rising, which maintains an optimistic forecast for financial corporations for the coming year.
Among the top ten was the QUAL fund, which selects companies for deposits that show steady revenue and profit growth and have no debts. The 33% growth at the end of the year confirms that the scheme, proven over the years, works reliably.
The most unexpected among the leaders in terms of profitability of investments was the RNO fund, which invests in shares of companies for the extraction and distribution of fresh water. Investors have not yet fully realized the profitability of this direction, but the past year shows that inflation also affects the water area. Betting on ESG as a global trend, one can think that RNO will continue to play a plus in the future.
American ETFs for Professionals
If we exclude margin ETFs that are among the leaders in profitability, we can draw up a general picture of the earnings of large investors at the end of the year. There are hundreds of profitable funds, let’s focus only on those who earned more than approved ETF tops in a year.
Raw materials are on the first line. Breaks in the supply chain made it possible to earn BDRY on the cost of sea shipping plus 229%. The global trend towards lower emissions at all levels of production has led to increased growth of GRN, which follows the cost of carbon raw materials in Europe. Global ecologization can bring GRN profit in this investment industry for quite a long time. Quotes of gas companies are walking nearby because natural gas is the most environmentally friendly type of fuel in conditions of energy shortage. Prices for metals, tin, and uranium in the conditions of the global commodity crisis will predictably grow, which promises profit in this segment next year, although without excess profitability.
Fundamental ideas for investing
American technologies and the US stock market are still relevant for investing money with an annual increase of 25-30%. These are FXIT and SBSP. Although a smaller profit should be expected next year. Among ETFs, it is worth paying attention to XLK technologies, the VFN financial segment, shares of successful developing companies QUAL, and the PHO water industry. In terms of the long-term perspective, the funds of the raw materials industry remain interesting: carbon credits GRN, natural gas FCG, uranium mining URNM.