The S&P/TSX Composite Index rose 201 points on October 14. The top performers on the day were the energy and base metals sectors. Some economists have warned of a potential market pullback in the face of rising inflation and a slowing recovery. Today, I want to discuss how some Canadians may want to spend some extra cash in their portfolios. With that, below are two exchange-traded funds (ETFs) that look promising for the long term.
Why you should gobble up shares of this automation-focused ETF
In late August, I’d looked at some of the top TSX stocks to snatch up as the summer wound down. One of those stocks is linked with the development of factory automation. Indeed, this is a space that Canadian investors should seek exposure to in 2021 and beyond.
Horizons Robotics and Automation ETF (TSX:RBOT) seeks exposure to equities that are involved in the development of robotics and/or artificial intelligence (AI). In April, Grand View Research projected that the global robotic process automation market would deliver a CAGR of 32% from 2021 through to 2028. Moreover, it received a significant boost from the impacts of the COVID-19 pandemic. Shares of this ETF have climbed 12% in 2021 as of early afternoon trading on October 15. It is down 4.6% month over month.
This ETF is primarily exposed to industrial, information technology, and healthcare industries. Some of its top holdings include the California-based AI lending platform Upstart Holdings and Nvidia, which designs graphics processing units for the gaming and professional markets.
The Horizons Robotics and Automation ETF has delivered double-digit growth over the past three years. Meanwhile, it just missed falling into technically oversold territory early this month. I’m still looking to snatch up this ETF today.
Don’t sleep on the healthcare space this decade
I’d suggested that Canadian investors should continue to jump into the healthcare sector in the beginning of 2021. Meanwhile, the COVID-19 pandemic has accelerated the growth of many key subsectors in the healthcare space. This is still an explosive space that can make investors a fortune going forward.
iShares Global Healthcare ETF (TSX:XHC) seeks exposure to the pharmaceutical, biotechnology, and medical device subsectors. Canadian investors can paint with a broad brush in the healthcare sector with this ETF. Moreover, its shares have climbed 12% in the year-to-date period. It is up 17% year over year.
Some of the top holdings in this ETF should be very familiar to investors. Johnson & Johnson is the top holding in the fund at just over a 6% weighting. It develops medical devices, pharmaceuticals, and consumer packaged goods in the healthcare space. Pfizer boasts the fourth-heaviest weighting in this ETF. This company has pushed itself to the top of the pack in the vaccine race. Its success in this area has led to massive revenue growth in recent quarters and is expected to continue to achieve big growth in the years ahead.
Shares of this ETF slipped into technically oversold territory earlier this month. It is not too late to snatch up this exciting fund.
