What are the top 5 ETFs to buy?
One metric that investors often look to is trailing one-month performance. The top ETFs for equities, bonds, fixed income, commodities, and currencies for April 2024 based on this metric include CRPT, FCVT, EMHY, DBA, and UUP.
ETF | Ticker | Expense Ratio |
---|---|---|
Vanguard S&P 500 ETF | (NYSEMKT:VOO) | 0.03% |
Invesco QQQ Trust | (NASDAQ:QQQ) | 0.2% |
Vanguard Growth ETF | (NYSEMKT:VUG) | 0.04% |
iShares Core S&P Small-Cap ETF | (NYSEMKT:IJR) | 0.06% |
Symbol | Name | 5-Year Return |
---|---|---|
SPXL | Direxion Daily S&P 500 Bull 3X Shares | 21.97% |
UPRO | ProShares UltraPro S&P500 | 21.68% |
FTEC | Fidelity MSCI Information Technology Index ETF | 21.67% |
IXN | iShares Global Tech ETF | 21.54% |
Symbol | Name | Avg Daily Share Volume (3mo) |
---|---|---|
SPY | SPDR S&P 500 ETF Trust | 73,524,602 |
TQQQ | ProShares UltraPro QQQ | 72,223,102 |
SOXL | Direxion Daily Semiconductor Bull 3x Shares | 71,120,102 |
XLF | Financial Select Sector SPDR Fund | 47,136,129 |
One metric that investors often look to is trailing one-month performance. The top ETFs for equities, bonds, fixed income, commodities, and currencies for April 2024 based on this metric include CRPT, FCVT, EMHY, DBA, and UUP.
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Symbol | Name | AUM |
---|---|---|
SPY | SPDR S&P 500 ETF Trust | $509,752,000.00 |
IVV | iShares Core S&P 500 ETF | $440,280,000.00 |
VOO | Vanguard S&P 500 ETF | $430,205,000.00 |
VTI | Vanguard Total Stock Market ETF | $380,452,000.00 |
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.
Ticker | Name | Annual dividend yield |
---|---|---|
RDIV | Invesco S&P Ultra Dividend Revenue ETF | 4.87% |
SPYD | SPDR Portfolio S&P 500 High Dividend ETF | 4.49% |
FDL | First Trust Morningstar Dividend Leaders Index Fund | 4.36% |
DJD | Invesco Dow Jones Industrial Average Dividend ETF | 4.25% |
What is better than ETF?
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.
ETF | Price | % Change |
---|---|---|
XLK Technology Select Sector SPDR Fund | $201.76 | 0.12% |
SCHG Schwab U.S. Large-Cap Growth ETF | $90.27 | 0.11% |
IAU iShares Gold Trust | $45.18 | 0.11% |
QUAL iShares MSCI USA Quality Factor ETF | $158.32 | 0.09% |
Some experts recommend at least 15% of your income. Setting clear investment goals can help you determine if you're investing the right amount.
Symbol | ETF Name | 10y Chg 4-2-24 |
---|---|---|
XNTK | SPDR NYSE Technology ETF | 457% |
QTEC | FT Nasdaq 100-Technology Sector ETF | 452% |
QQQ | Invesco Nasdaq 100 Trust ETF | 452% |
IGV | iShares Expanded Tech-Software Sector ETF | 425% |
FUND(TICKER) | EXPENSE RATIO | 10-YEAR RETURN AS OF APRIL 1 |
---|---|---|
Vanguard Growth ETF (VUG) | 0.04% | 15.07% |
iShares Russell 1000 Growth ETF (IWF) | 0.19% | 15.78% |
iShares S&P 500 Growth ETF (IVW) | 0.18% | 14.34% |
Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 15.95% |
CPSE ETF offered the highest return of 24.81%, followed by ICICI Pru PSU Equity Fund, which gave 21.20%. Infrastructure funds gave an average return of 14.57% in 2024 so far. Quant Infrastructure Fund rose 26.66% in the period.
For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.
ETFs can be safe investments if used correctly, offering diversification and flexibility. Indexed ETFs, tracking specific indexes like the S&P 500, are generally safe and tend to gain value over time. Leveraged ETFs can be used to amplify returns, but they can be riskier due to increased volatility.
For most individual investors, ETFs represent an ideal type of asset with which to build a diversified portfolio. In addition, ETFs tend to have much lower expense ratios compared to actively managed funds, can be more tax-efficient, and offer the option to immediately reinvest dividends.
The S&P 500's track record is impressive, but the Vanguard Growth ETF has outperformed it. The Vanguard Growth ETF leans heavily toward tech businesses that exhibit faster revenue and earnings gains. No matter what investments you choose, it's always smart to keep a long-term mindset.
What is the most aggressive ETF?
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.86B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 17.32%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
In theory, if Vanguard went bankrupt, your assets within the ETF should be safe, as they're technically yours held in trust by Vanguard. So if Vanguard collapsed, then what would likely happen would be that another manager would take over the ETF, or the assets would be sold off and you'd be paid out.
It is unlikely for its asset to go up 100% in a single day and so, an ETF can't become zero. An ETF follows a particular index and the securities are present at the same weight in it. So, it can be zero when all the securities go to zero.
The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.
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