Get the “America 2.0 ETF” With STIXX Stocks
I’ve created my own “America 2.0 ETF” for you — in a way.
An exchange-traded fund (ETF) is a basket of stocks. In this case, I have five tickers that are your key to locking in life-changing profits in our new world.
Since March 2, you’ve had the opportunity to get in on five buys that make up this super play.
If you bought, AWESOME!
In just four months, these plays are wiping the floor with the S&P 500 Index!
Our America 2.0 ETF is beating it with a 15% return compared to the S&P’s measly 4% in the same amount of time.
This means that the market’s taking notice of all of the innovations — like digital steel and more — that the Fourth Industrial Revolution is making right now.
And it means you still have time to get in before the gains skyrocket higher:
Five ETFs at the Heart of America 2.0
When I look at our economy, our markets and the companies that are remaking America into America 2.0 from America 1.0, there is a group of companies that represent the heart and soul of this idea, movement and revolution.
STIXX, if you remember, is five ETFs. For people who don’t know what an ETF is, it’s essentially a stock that is made up of many other stocks. It’s usually at least 30, in some cases 50, or maybe even 100.
The idea is to capture a theme, an industry or a sector and to own a wide number of them, so you really get the benefit of the entire group, industry, sector or theme. That’s a perfectly good way to get into things. The thing is, in any ETF there’s also going to be laggard stocks. There’s going to old stocks, America 1.0 stocks.
It’s an imperfect way. Nonetheless, as a way of introducing you to me, Bold Profits and America 2.0, you can still get an incredible benefit by owning ETFs that give you wide exposure to the America 2.0 idea. I came up with STIXX and first put it out there on March 2, 2020.
It was really before the crash happened and all that volatility happened that was associated with the crisis. The five ETFs are the VanEck Vectors Semiconductor ETF (Nasdaq: SMH), which to me I call digital steel. If you go back to the Industrial Revolution, steel was in everything.
Digital Steel Leading New-World Industrial Revolution
Every aspect of the Industrial Revolution required steel. That’s true as well today when you look at the Internet of Things (IoT), artificial intelligence (AI), self-driving cars, blockchain, precision medicine, new energy and space. All these things use up an extraordinary number of computer chips.
They are the heart, soul, body, skin — whatever you want to call it. Digital steel is what I like to call it. SMH really gives you wide access to these companies. It does have companies like Intel, which I am negative on. However, you can see, even since March 2, SMH has gone up 21%. You compare that to the S&P 500 and it’s up only 4%.
Renewable Energy Transforming Power
The second ETF I put into STIXX is the Invesco Solar ETF (NYSEArca: TAN). It’s another massive transition going on. We are moving from various forms of carbon-based energy that are not renewable, to things like solar power and wind power. Then there is associated technologies revolutionizing this form of power.
Batteries, we are incredibly positive on. To get wide exposure to this, I would tell you TAN is a good way to do it. Once again, as with SMH, there are companies in there that represent America 1.0 that are poorer than the types of companies we select for our services at Bold Profits.
Nonetheless, it’s great exposure. You can see, since March 2 this ETF is up 24% versus 4% for the S&P 500.
Demographic Growth Powering Housing Demand
The third ETF that’s in STIXX is iShares U.S. Home Construction (BATS: ITB), which is a housing ETF. That’s because we are in a moment of huge demographic growth with respect to housing. We have the millennial generation that is coming of age, rising to their highest levels of income.
We have gen Z following very closely after them. We have not been making enough houses in excess of eight to 10 years as a result of the housing crisis and financial crisis in 2008. So, we have very little supply, very little inventory, but we have massive amounts of demand.
Housing is an area and part of our economy that I believe is going to boom and continue to boom for some period. ITB will give you wide access to several companies, including homebuilders, retailers. It does not include some of the newer, America 2.0 companies that benefit from this.
Nonetheless, you would get wide exposure to a lot of different companies. This is one good way to benefit from it. ITB is up 12% since March 2, compared to 4%. So, it’s still beating the S&P 500.
Biotech Driving Precision Medicine Revolution
The fourth ETF that is in STIXX is SPDR S&P Biotech ETF (NYSEArca: XBI). This is a biotech index. It’s an equal-weighted index, which is slightly different than some of the others that are based on the company’s size. The difference is that if a company’s size is used to weight the stocks in an ETF, that means you are going to own more of the bigger companies.
Equal weighted means even the smaller companies have an equal amount. This means if a small company goes up a lot, this ETF can jump. XBI is a biotech index that drives at the precision medicine revolution going on based around genetics and data.
This is going to completely upend and radically change the way we practice healthcare in this country and around the world. This ETF gives you wide access to a few aspects of it: biotech companies that have drugs and a number of diagnostic companies which are upending the current system as it is. You can see XBI is up 23% since we put it in the portfolio.
Industrial Economy Adopting Futuristic Techniques
The last one is thus far underperforming. That is the Industrial Select Sector SPDR ETF (NYSEArca: XLI). The industrials ETF is going to benefit from several things. Number one, as we go back to restock the world from all the things we have been consuming while we have all been in lockdown, we are going to have make all these things.
We are going to make them increasingly in this country. That is going to facilitate the adoption of so many new technologies we talk about like 3D printing. The industrial economy is the one that is going to get the biggest benefit from it. Therefore, the last element of STIXX is XLI.
It has a lot of companies that may seem very America 1.0. However, the industrial economy is one where the companies of the previous generation are simply adopting new techniques, whether it be 3D printing, blockchain, AI and implementing it. There are not necessarily a whole new set of new companies that are going to be created.
However, these old companies are going to benefit from these new technologies. So, to benefit from all of that, if you buy XLI as we start to make things again, I believe this sector is going to boom. Then there’s the additional aspect of bringing manufacturing back from China and Mexico and making things in the United States.
As I mentioned, inventory restocking. We have to make things. As people buy houses and we spend money for all the other things I mentioned, whether it be to put up new biotech plants, make additional batteries or anything else. That all has to be created by the industrial economy.
Consider STIXX and put together a portfolio that gets you into the heart of America 2.0.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.