Which ETF is the best?
Look at the ETF's underlying index (benchmark) to determine the exposure you're getting. Evaluate tracking differences to see how well the ETF delivers its intended exposure. And look for higher volumes and tighter spreads as an indication of liquidity and ease of access.
| Symbol | Name | 5-Year Return |
|---|---|---|
| FNGU | MicroSectors FANG+™ Index 3X Leveraged ETN | 53.73% |
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 49.76% |
| TECL | Direxion Daily Technology Bull 3X Shares | 46.94% |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 42.50% |
| Schemes | Latest Price | Returns in % (as on Mar 06, 2024) |
|---|---|---|
| Nippon ETF Dividend Opportunities | 73.48 | 16.51 |
| Motilal Oswal NASDAQ 100 ETF | 145.30 | 14.09 |
| ICICI Pru S&P BSE 500 ETF | 10,235.90 | 9.76 |
| Nippon ETF Consumption | 108.10 | 7.54 |
Look at the ETF's underlying index (benchmark) to determine the exposure you're getting. Evaluate tracking differences to see how well the ETF delivers its intended exposure. And look for higher volumes and tighter spreads as an indication of liquidity and ease of access.
- 9 Safest Index Funds and ETFs to buy in 2024. ...
- Vanguard S&P 500 ETF (VOO 0.84%) ...
- Vanguard High Dividend Yield ETF (VYM 0.59%) ...
- Vanguard Real Estate ETF (VNQ 0.04%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT 0.82%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.36%) ...
- iShares 0-3 Month Treasury Bond ETF (SGOV 0.05%)
| Fund (ticker) | YTD performance | 5-year performance |
|---|---|---|
| Vanguard S&P 500 ETF (VOO) | 6.5 percent | 14.6 percent |
| SPDR S&P 500 ETF Trust (SPY) | 6.5 percent | 14.6 percent |
| iShares Core S&P 500 ETF (IVV) | 6.5 percent | 14.6 percent |
| Invesco QQQ Trust (QQQ) | 6.3 percent | 21.1 percent |
- iShares Russell Top 200 Growth ETF (NYSE:IWY) Annualized Return Over 10 Years: 16.09% ...
- Invesco QQQ Trust (NASDAQ:QQQ) Annualized Return Over 10 Years: 17.92% ...
- Vanguard Information Technology Index Fund (NYSE:VGT) 10-Year Daily Total Returns: 19.52%
| Rank | Symbol | Fund Name |
|---|---|---|
| 1 | SPY | SPDR S&P 500 ETF Trust |
| 2 | IVV | iShares Core S&P 500 ETF |
| 3 | VOO | Vanguard S&P 500 ETF |
| 4 | VTI | Vanguard Total Stock Market ETF |
Market risk
The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
What are the best ETFs for beginners?
An ETF focused on the broader market is best for beginners. Top options include the S&P 500-focused Vanguard 500 ETF or the even broader Vanguard Total Stock Market ETF. They both own hundreds of stocks and have low expense ratios.
Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.
- Level of Assets: An ETF should have a minimum level of assets, with a common threshold being at least $10 million. ...
- Trading Activity: Trading volume is an excellent indicator of liquidity, regardless of the asset class.
Low-risk ETFs like Invesco S&P 500 High Dividend Low Volatility ETF SPHD, Simplify Tail Risk Strategy ETF CYA, Cambria Tail Risk ETF TAIL and AGF U.S. Market Neutral Anti-Beta Fund BTAL could be compelling choices. These ETFs are designed for investors who prioritize capital preservation over high returns.
Unlike mutual funds, however, ETFs are traded on the open market like stocks and bonds. While mutual fund shareholders can only redeem shares with the fund directly, ETF shareholders can buy and sell shares of an ETF at any time, completely at their discretion.
Since ETFs are more diversified, they tend to have a lower risk level than stocks. Similar to stocks, ETFs can be bought and traded at any time and they are also taxed at short-term or long-term capital gains rates. The assets inside an ETFs are bought and pooled together by the fund's managers.
| ETF | Ticker | Annualized 5-year return |
|---|---|---|
| Vanguard S&P 500 ETF | VOO | 14.72% |
| iShares Core S&P 500 ETF | IVV | 14.27% |
| SPDR S&P 500 ETF Trust | SPY | 14.14% |
Vanguard S&P 500 ETF (VOO)
Expense ratio: 0.03 percent. That means every $10,000 invested would cost $3 annually. Who is it good for?: Great for investors looking for a broadly diversified index fund at a low cost to serve as a core holding in their portfolio.
| Symbol | Name | Dividend Yield |
|---|---|---|
| QRMI | Global X NASDAQ 100 Risk Managed Income ETF | 12.22% |
| YYY | Amplify High Income ETF | 12.13% |
| KBWD | Invesco KBW High Dividend Yield Financial ETF | 12.06% |
| SARK | AXS Short Innovation Daily ETF | 11.88% |
Are ETFs a good investment?
ETFs are considered to be low-risk investments because they are low-cost and hold a basket of stocks or other securities, increasing diversification. For most individual investors, ETFs represent an ideal type of asset with which to build a diversified portfolio.
One of the ways that investors make money from exchange traded funds (ETFs) is through dividends that are paid to the ETF issuer and then paid on to their investors in proportion to the number of shares each holds.
Generally speaking, the best time to trade ETFs is closer to the middle of the trading day rather than the beginning or end.
The Top40 is an equity Index of the 40 largest companies by market capitalisation, listed on the JSE. The fund is rebalanced quarterly and therefore has minimal trading costs. The fund may also hold a small portion in cash instruments and listed derivatives to effect efficient portfolio management.
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.82B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 18.26%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
