Clearly, 2020 was a very difficult year.
However, there were some pockets of the economy that actually did well.
There is a season for all things.
For some insight into where investors are focusing their investment dollars, today’s chart highlights the best ETFs of 2020.
By doing so, a clear theme emerges.
The top five ETFs of 2020 were all technology-related ETFs.
And within the technology space, the winning theme of 2020: clean energy.
In fact, the two leading clean energy ETFs of 2020 each gained over 200%.
It makes the above average annual gain of the S&P 500 (SPY) look paltry by comparison.
What was the best performing ETF of 2020?
The Invesco Solar ETF (TAN) was the best performing ETF of 2020 with a gain of over 200%.
What is an ETF?
An ETF (exchange-traded fund) is simply a basket of assets that trades on a stock exchange just like a stock.
How many ETFs are there?
Currently, there are over 2000 U.S. based ETFs.
What is the largest ETF?
SPY, which tracks the S&P 500, is currently the largest ETF based on assets under management.