Investors have high expectations from 2021 after a pandemic-stricken 2020. The coronavirus vaccine rollout, introduction of the much-awaited fresh round of stimulus and the Fed’s continuous support to keep interest rates low have added to investors’ hope for a faster economic recovery in the United States. Keeping the current scenario in mind, let’s discuss ETFs that can be good additions to investors’ portfolio for promising returns in 2021:

Notably, favorable government initiatives and federal policies, which include tax incentives to encourage installation, have accelerated global market growth for clean energy in 2020. Thus, clean energy ETF like iShares Global Clean Energy ETF (ICLN Quick QuoteICLN - Free Report) is looking good. Amplify Online Retail ETF (IBUY Quick QuoteIBUY - Free Report) will also make a good choice as online shopping is gaining favor among shoppers in an attempt to minimize human-to-human contact as coronavirus cases continue to surge in the United States.

Weak dollar, coronavirus vaccine rollout, and smoother international relationships are expected to make emerging markets an attractive investment arena. SPDR Portfolio Emerging Markets ETF (SPEM Quick QuoteSPEM - Free Report) is a good option to consider. Investors can also consider Vanguard ESG U.S. Stock ETF (ESGV Quick QuoteESGV - Free Report) as ESG investing has also shown some resilience and continues to gain investor attention amid the pandemic. Small-cap companies are closely tied to the U.S. economy and thus, are well positioned to outperform when the economy improves. Given the current scenario, investors can consider Schwab U.S. Small-Cap ETF (SCHA Quick QuoteSCHA - Free Report) .

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>