Best ETFs for 2022

Despite the S&P 500 rising, Big Money has been selling more than buying in December. Going to MAPsignals.com, we can scan Big Money ETF Buys and Sells. Recent big selling, indicated by the deep red lines in the chart below, led to choppy markets. But the selling shrank to practically nothing in late December. When selling dries up, it’s a bullish sign.

Source: www.mapsignals.com

Long-term investors should look for ETFs (and their stocks), with great setups.

Remember: ETFs are just baskets of stocks, so we need to look at them in detail. MAPsignals specializes in scoring more than 6,500 stocks daily. If I know which stocks compose the ETFs, I can apply stock scores to the ETFs. Then I can rank them all from strongest to weakest.

Let’s get to the five best ETF opportunities for 2022.

#1 iShares Semiconductor ETF (SOXX)

Semiconductor stocks had a good year overall. Big Money has been buying SOXX in chunks for most of 2021. Considering semiconductors’ widespread use and scarcity, it makes a lot of sense.

Below you can see the Big Money buys for SOXX:

SOXX holds several solid stocks; one example is Broadcom, Inc. (AVGO). Here are Big Money signals for AVGO:

#2 iShares Russell 1000 Growth ETF (IWF)

This ETF is all about growth. IWF holds some of the largest stocks out there – big, well-known names. There were washouts around March and October (red bars), but look closely and you’ll see how big dips have preceded big rises:

One great stock IWF holds is Microsoft Corporation (MSFT). It’s a long-time Big Money favorite with awesome fundamentals. As the multi-year chart below shows, it’s been a monster stock for years:

#3 Vanguard Dividend Appreciation Index Fund ETF Share (VIG)

Dividend stock exposure is part of a diversified portfolio, and VIG is sort of a “best of” ETF of dividend-paying stocks. The companies it contains are huge, household names across many industries. It’s been a solid performer all year:

One of many big winners within VIG is Abbott Laboratories (ABT). It’s an outlier stock that pays a huge dividend:

#4 Invesco NASDAQ Next Gen 100 ETF (QQQJ)

The first three ETFs were from the stronger part of my ranked list. Now we look for bargains by identifying weaker ETFs holding stocks with strong fundamentals. QQQJ fits the bill. It’s been under lots of recent selling pressure. Near-term weakness can be an opportunity:

One winner within this ETF is Fortinet (FTNT). Big Money loves it. The multi-year chart says don’t bet against it:

#5 ARK Next Generation Internet ETF (ARKW)

This pick is from the “bargain bin,” but don’t let that throw you off to its potential in 2022 and beyond. Many ARK funds have been under pressure, ARKW included. While it has fallen significantly, ARKW holds great companies that are a big part of the business world. So, it could be a potential outlier.

One great stock in ARKW is Block Inc Class A (SQ), formerly known as Square. It’s been hit hard lately, but Big Money has shown interest in SQ because of its solid fundamentals. Given the firm’s future focus, I’m a believer that it could thrive (as it has since Big Money dove in):

Here’s a Big Money recap:

• When Big Money buying pours in, stocks tend to go up
• Red selling on great quality can be a great opportunity
• Repeated buying usually means outsized gains

Let’s summarize here:

SOXX, IWF, and VIG rank high. QQQJ and ARKW, however, rank lower on our list, due to weaker technicals. That’s why I think these weaker ETFs represent great potential bargains.

The Bottom Line

SOXX, IWF, VIG, QQQJ, and ARKW are my top ETFs for 2022. Sticking with quality funds holding top stocks is a winning recipe long-term.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds no positions in SOXX, IWF, VIG, QQQJ, ARKW, AVGO, MSFT, ABT, FTNT, or SQ in managed or personal accounts at the time of publication.

Investment Research Disclaimer

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