What's the best ETF to buy right now?
These are VanEck Vectors Semiconductor ETF SMH, Invesco NASDAQ 100 ETF QQQM, Communication Services Select Sector SPDR Fund XLC, Vanguard Mega Cap Growth ETF MGK, and Vanguard Consumer Discretionary ETF VCR.
| Exchange-traded fund (ticker) | Assets under management | Yield |
|---|---|---|
| Vanguard Dividend Appreciation ETF (VIG) | $75.6 billion | 1.9% |
| Vanguard U.S. Quality Factor ETF (VFQY) | $298.0 million | 1.4% |
| SPDR Gold MiniShares (GLDM) | $6.1 billion | 0.0% |
| iShares 1-3 Year Treasury Bond ETF (SHY) | $25.3 billion | 4.4% |
These are VanEck Vectors Semiconductor ETF SMH, Invesco NASDAQ 100 ETF QQQM, Communication Services Select Sector SPDR Fund XLC, Vanguard Mega Cap Growth ETF MGK, and Vanguard Consumer Discretionary ETF VCR.
| Symbol | Name | 5-Year Return |
|---|---|---|
| ITB | iShares U.S. Home Construction ETF | 24.76% |
| XLK | Technology Select Sector SPDR Fund | 24.65% |
| PSI | Invesco Semiconductors ETF | 23.94% |
| IYW | iShares U.S. Technology ETF | 23.90% |
- Invesco QQQ Trust (QQQ).
- Vanguard Growth ETF (VUG).
- iShares Russell 1000 Growth ETF (IWF).
- iShares S&P 500 Growth ETF (IVW).
- Schwab U.S. Large-Cap Growth ETF (SCHG).
- SPDR Portfolio S&P 500 Growth ETF (SPYG).
- iShares Core S&P U.S. Growth ETF (IUSG).
- 9 Safest Index Funds and ETFs to buy in 2024. ...
- Vanguard S&P 500 ETF (VOO 0.04%) ...
- Vanguard High Dividend Yield ETF (VYM 0.23%) ...
- Vanguard Real Estate ETF (VNQ -0.05%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT 0.1%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.31%) ...
- iShares 0-3 Month Treasury Bond ETF (SGOV 0.03%)
ETFs can be very good investments. Many ETFs enable you to invest passively in a broader stock market index at a low cost, allowing them to earn market returns. Other ETFs are great options for those seeking passive income from dividend stocks or bonds.
- CYA. Simplify Tail Risk Strategy ETF.
- POTX. Global X Cannabis ETF.
- DAPP. DAPP - VanEck Digital Transformation ETF.
- WGMI. Valkyrie Bitcoin Miners ETF.
- SATO. Invesco Alerian Galaxy Crypto Economy ETF.
The Bottom Line. Many funds and ETFs have exposure to giants in the tech sector. The top ETF of 2023 is iShares Expanded Tech Software Sector ETF (IGV), with a YTD return of 355.22%.
The Fidelity Blue-Chip Growth ETF FBCG has jumped 58.7% in 2023 to become the best-performing U.S. fund, excluding ETNs and leveraged products, according to FactSet data. The WisdomTree U.S. Quality Growth Fund QGRW is up 56.2% this year, while the Invesco QQQ Trust Series I QQQ has risen 55.6% in 2023.
What are the top 10 ETFs?
| 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 |
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
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.
iShares Expanded Tech-Software Sector ETF (IGV)
You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.
In 2023, investors piled $209 billion into the category that constitutes roughly 28% of the total market. Four of the five funds with the largest 2023 inflows sit in the large-blend space, and the top three all track the S&P 500 (SPDR S&P 500 Trust SPY, Vanguard S&P 500 ETF VOO, and iShares Core S&P 500 ETF).
At any given time, the spread on an ETF may be high, and the market price of shares may not correspond to the intraday value of the underlying securities. Those are not good times to transact business. Make sure you know what an ETF's current intraday value is as well as the market price of the shares before you buy.
Mutual funds and ETFs may hold stocks, bonds, or commodities. Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.
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.
Stock-picking offers an advantage over exchange-traded funds (ETFs) when there is a wide dispersion of returns from the mean. Exchange-traded funds (ETFs) offer advantages over stocks when the return from stocks in the sector has a narrow dispersion around the mean.
Can an ETF go to zero?
However, it's rare for broad-market ETFs to go to zero unless the entire market or sector it tracks collapses entirely. The sharpest decline the last few decades has been in 2007, when some total stock market ETFs like IWDA lost 37% in one year.
| Symbol | ETF Name | 10y Chg 2-22-24 |
|---|---|---|
| SMH | VanEck Semiconductor ETF | 992% |
| SOXX | iShares Semiconductor ETF | 850% |
| PSI | Invesco Semiconductors ETF | 770% |
| XSD | SPDR S&P Semiconductor ETF | 626% |
| Symbol | Name | Dividend Yield |
|---|---|---|
| NGE | Global X MSCI Nigeria ETF | 85.61% |
| TSL | GraniteShares 1.25x Long Tesla Daily ETF | 81.98% |
| CYA | Simplify Tail Risk Strategy ETF | 80.58% |
| KLIP | KraneShares China Internet and Covered Call Strategy ETF | 66.09% |
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.81B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 13.76%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
Summary. Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.
