An exchange-traded fund (ETF) can not only give you great diversification but it can also give you a great way to earn some impressive returns and outperform the market. By focusing on specific sectors of the market, you can achieve much better than normal returns.
One example is the Amplify Transformational Data Sharing ETF (NYSE Arca:BLOK). The blockchain-focused fund has risen by 55% in the past 12 months as excitement in tech and crypto has made it a hot buy. The S&P 500, by comparison, is up around 24% during that period. The Amplify ETF invests in companies which are involved in the development of blockchain technologies.
There are 52 holdings in its portfolio, and not all of them are crypto mining stocks, either. Some big names include PayPal Holdings (NASDAQ:PYPL), Roblox (NYSE:RBLX), and International Business Machines (NYSE:IBM). Investors will get a good mix of software, semiconductor, and tech stocks with the fund.
Given the volatility which comes with investing in crypto and tech, however, it’s not going to be the safest investment to hold on to. But if you’re bullish on blockchain technologies and crypto in general, it can be an attractive option for growth-oriented investors. The fund struggled in 2022 when the markets were bearish on tech as a whole but over a five-year period, the ETF has still nearly doubled in value.
If you are willing to take on some risk, this ETF can potentially be an attractive growth investment you can hang on to for the long haul.
