ETFs are a great way to diversify your portfolio and invest in the stock market without having to worry about picking individual stock. They allow you to invest in a basket of stock that track a particular index, such as the S&P 500, and provide you with exposure to multiple companies in one single purchase. The top stock in the ETF are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), and the ETF is affordable with an expense ratio of 0.04%.
There are many ETFs to choose from and each one has different features and benefits. We have compiled a list of the best ETFs to invest in that provide exposure to different asset classes and sectors. We have included the tickers, YTD returns, the index it tracks, its portfolio breakdown, and notable holdings. The ETFs include VGT (Vanguard Information Technology ETF, $340.60), SPY (SPDR S&P 500 ETF, $399.59), SDIV (Global X SuperDividend ETF, $8.26), and IUSB (iShares Broad USD Investment Grade Corporate Bond ETF, $50.87).
One of the best reasons to invest in an S&P 500 ETF is that it can help protect your money against volatility. While this invest isn't completely risk-free, it can help reduce the risk of losses due to market downturns. The SPDR S&P 500 ETF (AMEX:SPY) tracks the S&P 500 Index and has an expense ratio of 0.0945%. This ETF has a YTD return of 10.68%.
The Vanguard Information Technology ETF (AMEX:VGT) has an average annual return of 18.4% over the past 10 years. This ETF has an expense ratio of 0.10% and tracks the MVIS US Listed Technology Index. Its YTD return is 8.13%, and its notable holdings include Apple Inc., Microsoft Corporation, and Amazon.com Inc.
Another great ETF to invest in is the Invesco QQQ (QQQ). This ETF tracks the Nasdaq-100 Index, which consists of the largest non-financial companies listed on the Nasdaq stock Exchange. The QQQ has an expense ratio of 0.20%, and its YTD return is 10.35%. Notable holdings in this ETF include Apple Inc., Microsoft Corporation, Amazon.com Inc., and Alphabet Inc.
ETFs are also a great tool to use for hedging. They allow you to win the trade even if your invest thesis doesn't pan out the way you expected. Buffer ETFs have become one of the ETF space's best innovations over the past few years, and they can help reduce the risk associated with invest in the stock market.
Another type of ETF to consider is a sector ETF. These ETFs invest in companies that are part of a specific industry or sector. This can help you gain exposure to a particular sector, such as healthcare or Technology, without having to pick individual stock. Some of the best sector ETFs include the iShares Global healthcare ETF (AMEX:IXJ), the Technology Select Sector SPDR ETF (AMEX:XLK), and the Vanguard Information Technology ETF (AMEX:VGT).
International ETFs are a great way to diversify your portfolio and gain exposure to global markets. These ETFs invest in companies from other countries, and they can help you gain exposure to different economies and markets. The best international-stock index funds include the iShares Core MSCI Total International stock ETF (NASDAQ:IXUS), the iShares MSCI ACWI ETF (NASDAQ:ACWI), and the Vanguard FTSE All-World ex-US ETF (AMEX:VEU).
High-yield ETFs are a great option for invest looking for income. These ETFs invest in companies that pay higher dividends or offer higher yields than the market average. The Invesco S&P High Yield Low volatility ETF (AMEX:SPDV) and the iShares iBoxx $ High Yield Corporate Bond ETF (AMEX:HYG) are two of the best high-yield ETFs.
Bond ETFs are a great way to diversify your portfolio and gain exposure to the fixed-income market. Bond ETFs invest in a variety of bonds, such as government bonds, corporate bonds, and municipal bonds. Some of the best bond ETFs include the iShares Broad USD invest Grade Corporate Bond ETF (NASDAQ:USIG), the Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH), and the Invesco BulletShares 2024 Corporate Bond ETF (NASDAQ:BSCQ).
Commodity ETFs are a great option for invest looking for exposure to the commodities market. These ETFs invest in a variety of commodities, such as gold, oil, and natural gas. The SPDR gold Shares ETF (AMEX:GLD) and the United States Oil Fund (AMEX:USO) are two of the most popular Commodity ETFs.
Real estate ETFs are a great way to invest in the Real estate market without having to buy individual properties. These ETFs invest in a variety of Real estate companies and REITs, such as office buildings, shopping malls, and apartment complexes. The Vanguard Real estate ETF (AMEX:VNQ) and the iShares Global REIT ETF (AMEX:REET) are two of the best Real estate ETFs.
Finally, there are leveraged ETFs. These ETFs use leverage to magnify the returns of an underlying index. While they can provide higher returns, they also carry a higher risk of losses. The ProShares Ultra Dow30 ETF (AMEX:DDM) and the Direxion Daily S&P500 Bull 3X ETF (AMEX:SPXL) are two of the most popular leveraged ETFs.
invest in ETFs can be a great way to diversify your portfolio and gain exposure to different asset classes and sectors. Before invest in any ETF, it is important to do your research and understand the risk associated with each ETF.
