Are you considering investing in the best ETFs? Worry not we have got your back. Picking the best ETFs for a better return depends on your personal investment goals and how much risk you're comfortable with.
Lucky for you, we've got a list of some popular ETFs that many consider solid choices for those aiming for better returns. No more further ado and let's jump right in and explore some of the top ETFs to buy.
Vanguard Total Stock Market ETF (VTI)
VTI is an exchange-traded fund that tracks the CRSP US Total Market Index. This means it aims to mimic the performance of the entire U.S. stock market, including large, mid, and small-cap companies across all sectors.
Holding 3750 stocks, this best long term ETFs has a very low expense ratio of 0.03%, making it a cost-effective way to gain broad exposure to the U.S. stock market. The fund's low tracking error indicates its ability to closely mirror the index's performance.
- Dividend Yield: 1.67%
SPDR S&P Dividend ETF (SDY)
Want to learn about the best ETFs to buy? Consider SYD. This exchange-traded fund tracks the S&P High Yield Dividend Aristocrats Index, specifically focusing on companies that have consistently increased dividends for at least two decades.
With an expense ratio of 0.35%, SDY aims to mimic the performance of its index. If you're after a steady income from dividends, SDY is worth considering, holding a diverse mix of over 120 stocks that focus on consistent dividend growth.
- Dividend Yield: 2.67%
Schwab US Dividend ETF (SCHD)
Why include SCHD in the list of the best dividend ETFs? Schwab US Dividend ETF (SCHD) earns its place with a distinctive focus on high-quality U.S. companies renowned for their consistent dividend payments.
SCHD follows the Dow Jones US Dividend 100 Index, picking the top 100 U.S. companies with at least ten years of consistent dividend payments. What makes SCHD stand out is its smart strategy and affordability, with a low expense ratio of just 0.06%.
- Dividend Yield: 3.95%
Vanguard Total Bond Market ETF (BND)
This best bond ETFs aims to closely match the performance of the U.S. investment-grade bond market. With a super low expense ratio of 0.03%, BND offers investors broad exposure to over 8,000 bonds in government, corporate, and mortgage sectors.
This extensive diversification helps manage risks by avoiding heavy reliance on any single issuer, making BND appealing to those seeking fixed-income securities with minimized individual risks.
- Dividend Yield: 3.12%
Invesco S&P 500 GARP ETF (SPGP)
SPGP is a U.S. Large-Cap Growth ETF tracking the S&P 500 GARP Index, selecting about 75 stocks with a focus on Growth at a Reasonable Price (GARP). It has a slightly higher expense ratio of 0.35% compared to some broad market ETFs.
Balancing growth potential, quality, and valuation factors, it aims to identify companies with robust earnings growth and reasonable valuations. This strategy seeks higher returns than pure growth stocks, potentially offering resilience in market downturns.
- Dividend Yield: 4.68%
iShares Russell 1000 Growth ETF (IWF)
The iShares Russell 1000 Growth ETF (IWF) is a U.S. Large-Cap Growth ETF that mirrors the Russell 1000 Growth Index, representing the performance of the largest 1,000 growth stocks in the United States. It has an expense ratio of just 0.04%.
Known as the best growth ETFs, it offers a budget-friendly way to follow the performance of U.S. stocks with growth traits. With 443 stocks in its portfolio as of January 18, 2024, it provides investors with diversified exposure to have above-average growth.
- Dividend Yield: 0.65%
Vanguard Short-Term Bond ETF (BSV)
Looking for the best ETFs to invest in? Vanguard Short-Term Bond ETF (BSV) is a cost-effective option in the Short-Term Bond category, aiming to mirror the Bloomberg Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index.
With a focus on short-term, low-risk bonds, BSV provides conservative investors with a diversified portfolio of over 1,600 bonds, minimizing the impact of interest rate changes. Its low expense ratio of 0.04% makes it an attractive choice for those seeking steady income.
- Dividend Yield: 2.64%
SPDR Gold Shares (GLD)
This community ETFs is a handy choice in the Precious Metals category, mirroring the price of gold. As the world's largest gold ETF, GLD offers a convenient and cost-effective way for investors to access the gold market without dealing with physical gold storage.
It acts like a stock on the exchange, making it easy to trade, and serves as a valuable hedge against inflation and economic uncertainties. While it doesn't generate income like dividends, its key features include direct gold exposure and transparency through physical gold backing.
- Dividend Yield: 0%
Schwab Fundamental International Large Company Index ETF (FNDF)
FNDF tracks the Russell RAFI Developed ex-US Large Company Index, focusing on large companies in developed markets outside the US. Unlike traditional methods, it weights holdings based on fundamental factors like sales, cash flow, and dividends.
This best performing ETFs smartly avoid putting too much money in popular stocks and keep a diversified portfolio. It's cost-effective with a low 0.07% expense ratio. What's even better? It tends to outperform the MSCI EAFE Index and it has shown impressive returns.
- Dividend Yield: 3.50%
iShares Floating Rate Bond ETF (FLOT)
The iShares Floating Rate Bond ETF (FLOT) is designed for investors seeking protection against rising interest rates. It tracks the Bloomberg Barclays US Floating Rate Note < 5 Years Index, offering exposure to short-term, investment-grade bonds.
FLOT provides a shield against interest rate risk, making it attractive in a rising rate environment. With a focus on securities with maturities of less than five years, it maintains a relatively low sensitivity to interest rate fluctuations.
- Dividend Yield: 5.64%
Avantis U.S. Small Cap Value ETF (AVUV)
AVUV is an actively managed ETF that focuses on U.S. small-cap value stocks. It seeks companies trading at what its managers believe are low valuations compared to their fundamentals. Over the past year, it has returned over 25%, compared to 17% for the benchmark.
It also prioritizes companies with strong profitability metrics like return on equity and operating margins and holds a diversified portfolio of around 736 stocks across various sectors and industries. It has an expenses ratio of 0.25%.
- Dividend Yield: 1.71%
SPDR Dow Jones Industrial Average ETF (DIA)
It is an exchange-traded fund that tracks the Dow Jones Industrial Average (DJIA), one of the oldest and most well-known stock market indices in the world. The DJIA is composed of 30 of the largest and most established publicly traded companies in the United States.
Offering investors a compelling financial proposition with a relatively low expense ratio of 0.16%, DIA prioritizes cost-efficiency. Beyond it also sweetens the deal by providing an income stream through regular dividends.
- Dividend Yield: 1.85%
Invesco QQQ Trust (QQQ)
QQQ is the most popular ETF globally, managing over $146 billion in assets. It offers an easy way for investors to tap into a collection of major technology, internet, and consumer-focused companies, including big names like Apple, Microsoft, Amazon, Alphabet (Google), and Tesla.
With over 12 million shares traded daily, it makes it easy to buy and sell without affecting the price. It follows the growth-focused Nasdaq-100 Index, potentially outperforming the broader market. With a low expense ratio of 0.09%, investors get to keep more of their returns.
- Dividend Yield: 0.60%
Columbia U.S. ESG Equity Income ETF (ESGS)
This ETF offers a unique investment approach by targeting U.S. companies with favorable environmental, social, and governance (ESG) ratings, coupled with an income focus. It aspires to build a sustainable portfolio with the potential for enhanced long-term returns.
Additionally, the ETF concentrates on income generation, selecting companies with robust dividend yields and consistent cash flow. Since its inception in June 2016, ESGS has demonstrated impressive performance, delivering a cumulative return of over 50%.
- Dividend Yield: 0.98%
North Shore Sprott Uranium Miners ETF (URNM)
Wondering what to invest in URNM? The North Shore Sprott Uranium Miners ETF (URNM) focuses on companies engaged in uranium mining, exploration, development, and production, as well as those holding physical uranium or royalties.
It comes with a low management fee of 0.95%. While URNM has experienced volatility, posting an impressive 100%+ return in the past year, its longer-term performance, averaging around 15% annually since inception in 2019, reflects the fluctuating nature of the uranium industry.
- Dividend Yield: 3.31%
Invesco Solar ETF (TAN)
TAN is a focused investment vehicle tracking the MAC Global Solar Energy Index, concentrating on the solar energy industry. With an expense ratio of 0.68%, it holds a diversified portfolio spanning solar companies globally, including the US, China, and Europe.
As a non-diversified fund, IT provides the potential for higher returns. Investors should be cautious about industry risks like regulations and technology changes, requiring thorough risk assessment before adding TAN to their portfolio.
- Dividend Yield: 0.11%
Invesco DB US Dollar Index Bullish Fund (UUP)
To gain the best return on your investment, try considering UUP. This unique ETF employs futures contracts to leverage potential returns, significantly magnifying both gains and losses based on the underlying US dollar index.
Despite its leveraged nature, UUP stands out with a relatively low expense ratio of 0.77%, setting it apart from other leveraged ETFs. Over the past year, UUP's performance closely aligned with the strength of the US dollar, yielding an impressive return of over 20%.
- Dividend Yield: 6.3%
Vanguard Real Estate ETF (VNQ)
Do you know that with a commendably low expense ratio of 0.12%, VNQ holds a diverse portfolio of over 300 REITs and real estate-related companies spanning residential, commercial, industrial, and healthcare sectors?
As of October 26, 2023, VNQ has demonstrated historically strong returns, boasting a 12.37% 1-year return and a 31.81% 3-year return. Key benefits include diversification, liquidity, and income potential, with VNQ providing a competitive dividend yield of around 3%.
- Dividend Yield: 3.09%
Fidelity Total Market Index Fund (FNILX)
It is a passively managed mutual fund tracking the Fidelity U.S. Total Investable Market Index. With an exceptionally low expense ratio of 0.035%, it provides broad exposure to the U.S. stock market, holding over 8,000 stocks across diverse sectors.
FNILX has showcased robust historical performance, delivering an 18.03% 1-year return and a 20.79% 3-year return. This fund presents a cost-effective and well-diversified investment option for those seeking to mirror the performance of the majority of the investable U.S. stock market.
- Dividend Yield: 1.61%
Vanguard Mid Cap Growth ETF (VOT)
With an impressively low expense ratio of 0.04%, among the lowest in its category, VOT holds over 300 mid-cap growth companies across diverse sectors. It delivered a 52.98% 1-year return and a 24.65% 3-year return as of October 26, 2023.
VOT offers diversification benefits, reducing risk through exposure to a broad array of mid-cap growth companies, all while maintaining a cost-effective approach with its passive management strategy.
- Dividend Yield: 0.72%