4 ETFs to Make Your Strong Hands HAPI 😊
Ready to make your Strong Hands HAPI 😊?
I get it. The markets have been crazy. But if it were me? I’d be buying.
So, I’m going to share one opportunity for you today … well, four.
I’m recommending that you embrace this volatility and get HAPI 😊! These are four incredible exchange-traded funds (ETFs) that get you into the most exciting America 2.0 mega trends.
Once this volatility comes to an end, I believe this portfolio will skyrocket.
You can check out today’s video below and find out how holding Strong Hands on HAPI 😊 is estimated to pay off in the long run:
Today I want to talk about a mini portfolio I put up on YouTube a few months ago. I came up with the acronym HAPI. It had four ETFs in it. For those of you who are new to the stock market, an ETF is a basket of stocks with a theme.
Usually it has at least 20 or 30 stocks. Some ETFs might have 100. The four ETFs I selected to make up HAPI have four different industry or sector concentrations. The first ETF is an ETF that addresses the video gaming market: Global X Video Games and eSports ETF (Nasdaq: HERO).
The second one is the ARK Fintech Innovation ETF (NYSEArca: ARKF). The third one is also by our friends at ARK Invest: The 3D printing ETF (BATS: PRNT). The fourth one is a homebuilding ETF: iShares US Home Construction ETF (BATS: ITB).
Videogaming’s Pandemic Surge: Buy HERO ETF
Let’s start with HERO, the video gaming ETF. The headline is a little dated from a year ago, in all likelihood the numbers are now bigger than this.
Nonetheless, it illustrates how big a market this is and how well it is doing. This headline comes from a publication called Newzoo says,
“The World’s 2.7 Billion Gamers Will Spend $159.3 Billion on Games in 2020; The Market Will Surpass $200 Billion by 2023”
The pandemic has lifted these numbers. I would say these are even higher. Point is, the video gaming market is actually bigger than movies and television combined. By the total amount of money spent it’s the biggest entertainment market that exists. It’s growing rapidly and continues to grow rapidly.
You might know that if you are a gamer yourself and use a PS5 or are waiting for a PS5. Or maybe you are a user of the Nintendo Switch or an Xbox. You know the amount of time you are spending on it and the amount of money you are spending on these platforms.
This is an extraordinary growth industry that continues to grow because it’s continuing to take market share from other activities. More and more people choose to spend their time playing video games, either on their phones, computers or consoles.
We are also seeing new markets for games through virtual reality headsets. I have an Occulus Quest and we have a number of games. It’s a mixture of games and experiences that are also part of this market. This market is not just growing, it is expanding and incorporating new technologies.
This is why I believe HERO is an ETF that has stocks that can rise a great deal. The benefit of owning an ETF instead of a stock is you are getting broader exposure to a single market. However, if you want laser-focused exposure, the benefit of owning a stock is that the leader in that market can go up the most.
If you are looking for that, that’s the kind of thing we do in our investment newsletter. We point people to the leading stocks in a particular industry. If you are interested in that, check into ProfitsUnlimited.com.
ARKF is the Fintech ETF to Buy
The second one I want to talk about is the fintech ETF. Fintech for those who are unaware is essentially the digitization of finance. If you use apps like Venmo or Cash App or PayPal, Acorn or Chime, this is an example of fintech. It takes something that previously required you to go to a bank, instead you can do a lot of it using your phone.
These companies have made it easy to do things that, in the old way, were very bureaucratic, expensive and time consuming. Fintech is a market that has exploded as a result of the pandemic. People stopped taking cash and people went to online everything.
The use of these apps exploded higher and it happened worldwide. Based on what is going on, it does look like fintech is going to continue to take market share from banking, insurance and old finance.
The forecast I found online from a research organization says the fintech market is expected to grow gradually and reach a market value of $320 billion by 2025. We are already in 2021. This is going to be rapid growth. It’s a compound annual growth rate of 22%.
Just for those of you who are wondering if 22% is a high or low number, I can tell you it’s a high number. Take 1,000% and compound it at 22% and you will see you are getting to very high numbers, very quickly. 22% is a very high rate of growth.
The ARKF ETF has a lot of leading companies like PayPal or Square. A lot of these companies have come to the market using the IPO or SPAC market in the last year or so. These are all included in there. If you want to get wide exposure to the fintech opportunity, this is a good way to get access.
PRNT ETF: The ETF to Buy for Everything 3D Printing
The third one is my favorite: 3D printing. Most people, I believe, really have far too little 3D printing in their portfolio because it is underappreciated. 3D printing went through a hype cycle where the stocks went up. However, their technologies were immature, their businesses were less mature.
Today, their technologies are very useful and being widely implemented across lots of industries. So many materials can be used. Whereas, back then, it was just one. The opportunity is extraordinary right now. This is from research firm I found on the internet.
They said the global 3D printing market was valued at $13.78 billion, which is pretty small in terms of where it is. It’s expected to expand at a compound annual growth rate of more than 21%. Truthfully, some of the others I found were much higher.
However, this one had a tremendous chart and showed a lot of the different sub markets of 3D printing. That’s why I chose to show you this one. Within the PRNT ETF I would tell you they have wide exposure to every 3D printing maker out there and a lot of businesses that will benefit from it.
Across our services we are all in on 3D printing. We think this is a revolution that’s going to completely upend the world of making things. Everything from houses to furniture to pretty much anything you see you will see 3D printers start to make it.
It also has a huge role that will start to unfold as we explore space and put lunar colonies up and go to Mars. 3D printing we think is a long-term, massive, high-growth opportunity that can be sustained for a long period of time. That’s why it’s one of the ETFs in HAPI.
Homebuilder ETF for Rising Housing Demand
The last one I will talk about is the housing market. In our services, we approach the housing market by buying into newer stocks than things like homebuilders. For example, a retailer like Wayfair is one way to benefit from the housing market.
However, for HAPI we have used a regular, old fashioned homebuilder ETF. It has all the major homebuilders in the United States. It also has stocks like Home Depot and others like it. This headline will show you how big this opportunity is,
“The U.S. Housing Market Is Now Nearly 4 Million Homes Short of Buyer Demand.”
Four million is a lot of homes. Just understand that for anyone to put up a home you have to first get the land, go through permits, rake the land, accumulate all the materials and you have to have the labor to do it. This is a complicated process that can take as little as six to nine months to as long as three years depending on how complicated the build is.
This is stimulating a massive bull market in housing in the United States. It’s going to continue for a long time. I would estimate three, five, seven years or maybe even 10 years.
That’s the underlying basis for HAPI. It’s comprised on the video gaming ETF, the fintech ETF, the 3D printing ETF and a homebuilder ETF. Through it you capture what we focus on at Bold Profits and what all our newsletters are focused on.
We call it America 2.0 or the Fourth Industrial Revolution. For many people it’s just the implementation and adoption of these new technologies and these things that you are reading about here and there. However, you might not be exposed to them in your portfolios.
The old world things in the S&P 500 still largely are invested in the technologies, products and services of the old. The companies in these ETFs are smaller, mid-sized at best. They really give you exposure to these opportunities in a big way.
However, if you want the leading companies for all these areas, you should subscribe to our newsletter. Profits Unlimited is the gateway if you will to all of them.
I know HAPI has not done well recently. That has to do with the fact growth stocks are going down. These are all stocks that are growing. However, the future is bright. I believe they can soar higher. If you bought as a result of this, please hang in there.
Editor, Profits Unlimited