Choosing the best ETF to buy is becoming more difficult by the day, as market conditions, and macroeconomic fundamentals continue to change. There are also many different types of ETF that focus on different market segments, to the point of making the decision more complicated than it might seem on the surface.
There is no simple way to formulate this list, as the best ETF to invest in for you will depend on your investment goals and risk tolerance. However, below we’ve compiled a list of 10 of the best ETFs to invest in, based both on past performance and future potential.
Top 10 Best ETF To Buy Or Invest In
1. SPDR S&P 500 (SPY)
The SPY ETF is a fund that tracks the performance of the S&P 500. Whilst this could also be considered as an index fund, in this format, it is offered as an ETF. The S&P 500 is a good barometer of general US economic health and has been proven to outperform many other markets over a large period of time. The expense ratio for SPY is also very low at 0.0945%.
Whilst we are in rather uncertain economic times at this moment, with a potential for US recession now above 50% according to consensus estimates; the S&P 500 does generally bounce out of hard times quicker than most. Also, as a fund containing 500 of the best run US companies, you can be confident that the best minds are on to solving the problems of the day.
Not always going to be the best performing ETF due to its’ diversity; but for general stability, and a reflection of global markets, you will not find much better.
2. Invesco QQQ Trust (QQQ)
The QQQ ETF tracks the performance of the NASDAQ-100, an index made up of 100 of the largest non-financial companies listed on the NASDAQ stock exchange. The QQQ has a strong track record and has outperformed the S&P 500 over the past 10 years. The expense ratio for QQQ is 0.20%.
3. iShares Core U.S. Aggregate Bond (AGG)
The AGG ETF is a bond fund that invests in a wide range of US government and corporate bonds. This makes it a good choice for investors looking for stability and income. The AGG has a low expense ratio of 0.08%.
4. Vanguard Short-Term Corporate Bond (VCSH)
The VCSH ETF is a bond fund that invests in short-term US corporate bonds. This makes it a good choice for investors looking for stability and income with less interest rate risk than longer-term bond funds. The expense ratio for VCSH is 0.07%.
5. SPDR Gold Shares (GLD)
The GLD ETF tracks the price of gold, making it a good choice for investors looking to hedge against inflation or market volatility. The expense ratio for GLD is 0.40%.
6. iShares 20+ Year Treasury Bond (TLT)
The TLT ETF is a bond fund that invests in long-term US government bonds. This makes it a good choice for investors looking for stability and income with less interest rate risk than shorter-term bond funds. The expense ratio for TLT is 0.15%.
7. Vanguard Dividend Appreciation (VIG)
The VIG ETF tracks the performance of the Dividend Aristocrats, a group of companies that have increased their dividends for at least 25 consecutive years. This makes it a good choice for investors looking for stability and income. The expense ratio for VIG is 0.08%.
8. iShares 7-10 Year Treasury Bond (IEF)
The IEF ETF is a bond fund that invests in intermediate-term US government bonds. This makes it a good choice for investors looking for stability and income with less interest rate risk than longer-term bond funds. The expense ratio for IEF is 0.15%.
9. iShares iBoxx $ High Yield Corporate Bond (HYG)
The HYG ETF is a bond fund that invests in high-yield, or junk, US corporate bonds. This makes it a good choice for income-seeking investors with a higher tolerance for risk. The expense ratio for HYG is 0.48%.
10. SPDR Bloomberg Barclays International Treasury Bond (BWX)
The BWX ETF is a bond fund that invests in a wide range of government bonds from around the world. This makes it a good choice for investors looking for stability and income with less interest rate risk than US-focused bond funds. The expense ratio for BWX is 0.45%.
The above list is by no means exhaustive, but these are 10 of the best ETFs to buy based on past performance and future potential. As always, it’s important to do your own research before investing in any ETF, and to consult with a financial advisor if you’re not sure which ones are right for you.
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