Are you looking for some investment tools to secure your hard-earned money? Well, then stocks and ETFs are one of the best options. Although, before moving forward, you should know what are stocks and ETFs. Now, let's begin with understanding stocks and ETFs.
If you go for the definition, then any stock is a percentage of ownership depicted on the ownership certificate of the company. So, the ownership of the company is divided into several fractions, which are then called stocks. Now, ETF stands for Exchange Traded Funds, which is a kind of pooled investment security that is almost like a mutual fund. One of the key differences between ETFs and mutual funds is that ETFs are traded on stock exchanges, while mutual funds are not. ETFs are investment tools backed with assets like particular commodities, indexes, and several other assets.
One of the important things to know about ETFs and stocks is that the former has low risk, while the latter experiences major turmoil. You need a professional to manage your ETFs while with stocks, you have the option to manage them yourself or hire a broker. Also, ETFs have comparatively low-liquidity rates as compared to stocks that have greater liquidity rates.
Tesla has provided YTD returns of 743% in the financial year 2020-2021. Though the company has been surrounded by sceptics all along, they have certainly exceeded the expectations of its investors with growing stock valuations. The company has a diverse portfolio that adds to its growth trajectory. The product portfolio includes solar roofs/panels, batteries, and software that adds success to Tesla. Besides, the dynamic personality of CEO, Elon Musk shows considerable prospects in the field of clean energy and Electric vehicle.
The company has a return YTD of 80% and is a pioneer in technology. Though the company is known as a mobile giant, it has exceeded its potential in the service sector as well. The company's 30% of revenue is from the services business. Apple has a collection of investments and cash at $200 billion.
The leading eCommerce giant has achieved extensive growth, especially during the pandemic. This company has attained a 40% rise in the overall net revenue in the third quarter of 2020-21. Several factors provide an edge to Amazon, especially its strategy to enhance the list of Prime members and further attract them to make more purchases.
The company had 1112% YTD returns. It's a Chinese electric vehicle maker that is moving in the direction of Tesla. In the 2020-21 financial year, the company has reported benchmark deliveries for 5 months, consecutively. Besides, China's passenger electric vehicle sale has been increasing by 26% every month for November 2020 and overall, 143% yearly. So, the business has accounted for record sales.
It has a 41% of the YTD returns. The company has experienced a surge in the Work and learn from home trends. The growing valuation of stocks is also accompanied by the strong performance of the company in Intelligent Cloud segments. The company has cash reserves of $140 billion with $60 billion of operating cash flow.
Though several eCommerce brands attained massive growth during and after the pandemic, however, Etsy experienced something truly different. Etsy grew twice the overall growth rate of the entire eCommerce.
Despite some political turmoil, the house of fairytales is always ready to serve its investors with exceptional dividends. During a pandemic, the company experienced a certain impact on the theme park and movie industry, however, the streaming service attained major gains. The company has the perfect intellectual property with names like Marvel, Pixar, Star Wars, ESPN etc. Hence, it's not just a popular stock, but the safest stock of all time.
The company has a suite of 60 subsidiary businesses with some popular names including Duracell, GEICO, and Dairy Queen. It has a portfolio of common stocks at a valuation of $300 billion. https://www.fool.com/investing/top-stocks-to-buy/
The travel stocks around the world include companies like hotels, Airlines, booking companies and other tourism businesses. During a pandemic, the companies have undergone several issues, however, the stock market still has some options to be explored. Some of the popular companies include Royal Caribbean Cruises, which is listed as RCL on NYSE. It's a cruising company with extensive market coverage. The top three would certainly include the leading Southwest Airlines along with Airbnb. Both companies have a greater market and extensive value for their stocks on Nasdaq and NYSE.
In the fashion world, there is a wide range of companies in different apparels and accessories markets. These companies allow a decent dividend to their investors which further implies investors can have an exclusive reward in terms of dividend investing strategy. Although, investors should know that the fashion industry has consumer discretion and hence, their performance could be cyclic. Some of the exclusive companies to invest in the fashion world include Nike, Skechers, Ralph Lauren, LuLu, Stitch Fix, TJ Maxx, and Ross. The companies listed above have the leading stocks in the fashion market and should be certainly considered for investment.