Forget tracking the FTSE 100. Here’s my top ETF pick for 2021 and beyond!

first_img Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Paul Summers Stock-picking isn’t for everyone and it doesn’t need to be. Over the last decade or so, exchange-traded funds (ETFs) have become the go-to destination for UK investors who don’t have the desire to buy individual company shares.After all, why bother researching all the companies in, say, the FTSE 100 when an investor can simply buy a cheap fund that passively tracks the return of the index itself. Those who did just this back in March 2020 will have done rather well since.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…FTSE 100: On a rollFrom the depths of the market meltdown to last Friday’s close, the FTSE 100 has climbed back a stonking 35% in value. That’s a superb return for very little work as far as ETF holders are concerned.This strong recovery isn’t hard to fathom either. The emergence and gradual rollout of several vaccines was a shot in the arm for market sentiment. A resolution to the bitter trade negotiations between the UK and the EU at the end of 2020 likely provided further positive momentum. Now, I think an ETF tracking the FTSE 100 remains a good investment. It’s certainly a better idea than sticking savings in a Cash ISA! Since I’m looking to really grow my money over the next decade or so however, I’ve decided to track a group of companies that could generate an even better return.Top ETF pickMy top passive investing pick for 2021 is WisdomTree Battery Solutions UCITS ETF (LSE: CHRG). Thanks to the rapidly growing demand for electric cars and energy storage, I see getting at least some exposure to this megatrend as vital for any investor with many years left in their stock market journey.Why this particular fund? There are a few reasons. First, there’s the size of the portfolio. With 95 holdings, this ETF isn’t too reliant on just a few companies succeeding nor too large to completely dilute the contribution of those stocks that really do perform.Aside from this, WisdomTree’s fund also offers good geographical diversification across 19 countries. Almost 30% of its holdings are based in China and 15% from Japan. Only 22% or so are listed in the arguably-overvalued US market.The cherry on the cake for me is the ongoing fee of 0.4%. That may look a lot compared to the typical 0.07% charged by a FTSE 100 tracker but I consider it good value for tapping into this growth story. It’s also slightly cheaper than the only other ETF currently tracking this trend that I could find — the L&G Battery Value-Chain UCITS ETF. Buyer bewareOf course, nothing is a sure thing when it comes to investing. After such a strong run in green energy, electric car and battery-related stocks in recent months, there remains a very real possibility that we could see some profit-taking in 2021. As such, this fund certainly has a chance of underperforming the FTSE 100 for a while.As a long-term investor however, this doesn’t concern me. What’s more important is that I look to future proof my portfolio by buying into promising trends when they are in their infancy. The FTSE 100 might contain some great businesses but I just can’t see these growing at a similar clip to those in the battery space. It could be a bumpy ride, but I’m optimistic that my eventual returns will be worth it. Forget tracking the FTSE 100. Here’s my top ETF pick for 2021 and beyond! Image source: Getty Images “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Paul Summers owns shares in WisdomTree Battery Solutions UCITS ETF. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Paul Summers | Monday, 18th January, 2021 last_img

Leave a Reply

Your email address will not be published. Required fields are marked *