Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 440

Five ideas for 2022

2021 has been another record year for ETFs in Australia. It has also been an unpredictable one. We expect ETFs to continue to grow in 2022. Here are our top five ideas as we enter the new year.

1 – Accessing the broad Australian economy in recovery - MVW

The Australian share market faces a tricky period in 2022 as the world continues to navigate the COVID pandemic. For Australian equity investors, a core strategy should provide exposure to all sectors of the economy to diversify risk, and get exposure to companies that can maintain and grow their earnings through uncertain times. This would include cyclicals such as energy and materials without an over exposure to the banks, which face headwinds as interest rates rise (property lending could be hit). Concentration, always a problem in the S&P/ASX 200 Index, is about to get worse with BHP consolidating its Australian and UK listing to become the biggest company on ASX. Investors buying an Australian equity strategy that contains 200 companies would think it is unlikely one stock would be 10% of the portfolio, nor would two sectors represent over 50% of the portfolio, but that is what you will be getting from a portfolio linked to Australia’s largest 200 companies. The VanEck Australian Equal Weight ETF (MVW) equally weights the largest and most liquid stocks on the ASX. It is underweight the mega-cap resources and big banks relative to the S&P/ASX 200 Index. As at 30 November 2021, MVW’s portfolio is underweight financials by 12.58%, mega-caps by 18.47% and overweight large-cap (+12.07) and mid-cap (+6.62%) stocks.

2 - Positioning for slowing growth in the wake of new COVID variants - QUAL

With COVID lockdowns ongoing and new disease variants travelling through the globe now and potentially in 2022, big questions hang over the global economic recovery. If the global economy does falter in 2022, stock markets too could stall. In this scenario, we believe quality companies could outperform as they tend to offer investors protection during weaker economic environments and heightened uncertainty and market volatility. VanEck MSCI International Quality ETF (QUAL) offers exposure to a diversified portfolio of quality international companies listed on exchanges in developed economies. Top holdings include Microsoft, Apple, Google owner Alphabet, Meta Platforms (formerly Facebook) and Nvidia, whose share price has shot up in 2021 given the shortage of computer chips which is expected to continue through 2022.

3 – Access a global megatrend - CLNE

The transition to clean energy and focus on climate change is one of the world’s most important global megatrends and presents a long-term growth opportunity. We expect this to accelerate into 2022. The Paris Agreement and recent Glasgow Climate Change Conference is driving demand for green, renewable energy across the globe away from fossil fuels. This is a significant long-term trend offering huge investment potential and clean energy companies could rally in 2022 as demand for renewable energy rises. The VanEck Clean Energy ETF (CLNE) currently provides exposure to 30 of the largest, most liquid global companies involved in clean-energy production and related technologies and equipment.

4 – Access a technology megatrend - ESPO

The explosion of video gaming before and during the COVID-19 pandemic has created significant investment opportunities in global gaming companies. Research house Newzoo forecasts the global game market will reach US$218.7 billion in 2024, up from US$175.8 billion in 2021. Positive secular trends are driving the long-term growth of gaming and esports, including an increasing number of gamers who also are spending more time gaming, not surprising given continuing lockdowns. Video gaming related stocks that have benefited from metaverse include Nvidia, now one of the largest companies in the US, Advanced Micro Devices and Roblox, all held by VanEck’s Video Gaming and esports ETF (ESPO).

5 – Follow the smart money - GPEQ

Private equity is important for investors’ portfolios. As an alternative investment, it displays a low correlation with other asset classes and it offers attractive risk and return characteristics, which will be important in 2022 given stock markets are expected to remain volatile. In addition, we believe the opportunities are huge. The private equity asset class is significantly bigger than the publicly listed market; an estimated 98% of companies are private while a mere 2% of companies are listed. The VanEck Listed Private Equity ETF (GPEQ) is an Australian first and it will open up a huge market and enable retail investors to participate in private equity, which has added appeal in the current low interest-rate environment.

 

Russel Chesler is Director, Investments & Portfolio Strategy at VanEck, a sponsor of Firstlinks. This is general information only and does not take into account any person’s financial objectives, situation or needs. Any views expressed are opinions of the author at the time of writing and is not a recommendation to act.

 


 

Leave a Comment:

     
banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Getting rich vs staying rich

Strategies to get rich versus stay rich are markedly different. Here is a look at the five main ways to get rich, including through work, business, investing and luck, as well as those that preserve wealth.

Latest Updates

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Superannuation

How to prevent excessive superannuation balances

There is an alternative, simpler approach which could be used to mitigate some of the difficulties that the proposed super tax has for holders of large assets such as properties, businesses and farms in SMSFs.

Shares

US shares: Ambitious multiples on ambitious EPS forecasts

Here's a detailed look at how current valuations and profit forecasts for the S&P 500 stack up versus history. The answer? Both seem excessive, making the market vulnerable to a correction or worse.

Taxation

Family trust tax: When is a loan not a loan?

A recent ruling could change the tax payable by beneficiaries of family trusts. If the ATO has previously demanded extra payments on unpaid present entitlements in your family group, you should watch this space.

Property

Things you must consider before subdividing a property

Subdividing can offer a lucrative first step into property development. Yet it comes with legal, planning and unexpected tax considerations that should be understood from an early stage to avoid surprises.

Investment strategies

5 insights that put market volatility in perspective

Though it may feel like this time is different, markets have shown resilience throughout history when confronted by wars, pandemics and other crises. In many cases, the best course of action has been none at all.

Strategy

Concerns about China's rise to power seem overblown

China has always managed its affairs in a very different way to Western countries and empires. For those concerned about China's rise as a global power, the big question is whether this approach could change.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.