Choosing the right ETF | BlackRock (2024)

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Choosing the right ETF | BlackRock (2024)

FAQs

How do I choose the best ETF to invest in? ›

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.

What should I consider in an ETF? ›

Given the number of ETF choices that investors have, it's important to consider the following factors:
  • Level of Assets: An ETF should have a minimum level of assets, with a common threshold being at least $10 million. ...
  • Trading Activity: Trading volume is an excellent indicator of liquidity, regardless of the asset class.

Which ETF is best to invest? ›

TOP EXCHANGE TRADED FUND
  • Mirae Asset Silver ETF. ₹79.39. ...
  • UTI Silver Exchange Traded Fund. ₹80.39. ...
  • Tata Silver ETF. ₹7.15. -- ...
  • IDBI Gold ETF. ₹6,579.15. 1,045. ...
  • UTI Gold Exchange Traded Scheme. ₹60.90. 179,320. ...
  • Motilal Oswal S&P BSE Enhanced Value ETF. ₹96.08. 60,499. ...
  • CPSE ETF. ₹84.00. 2,211,143. ...
  • HDFC Gold Exchange Traded Fund. ₹51.67. --

How do I choose an ETF or index fund? ›

"Investors who value the flexibility to trade in real time with a variety of order types might prefer ETFs, while investors who prefer the simplicity of buying and selling shares only at the daily closing NAV might prefer a mutual fund," says Comegys.

How do I choose an ETF for beginners? ›

Ultimately, investors choosing an ETF need to ask 3 questions: What exposure does this ETF have? How well does the ETF deliver this exposure? And how efficiently can I access the ETF? Look at the ETF's underlying index (benchmark) to determine the exposure you're getting.

Is Vanguard or Fidelity better for ETFs? ›

Both Fidelity and Vanguard have a wide variety of low-cost mutual funds and ETFs. If you're simply looking at the options offered by each firm, Fidelity has more options available.

What is the downside to an 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.

How many ETFs should I own as a beginner? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Is it smart to just invest in ETFs? ›

If you're looking for an easy solution to investing, ETFs can be an excellent choice. ETFs typically offer a diversified allocation to whatever you're investing in (stocks, bonds or both). You want to beat most investors, even the pros, with little effort.

What is the safest ETF to buy? ›

Funds 1-5
  1. Vanguard S&P 500 ETF (VOO 1.16%) ...
  2. Vanguard High Dividend Yield ETF (VYM 0.62%) ...
  3. Vanguard Real Estate ETF (VNQ 0.94%) ...
  4. iShares Core S&P Total U.S. Stock Market ETF (ITOT 1.24%) ...
  5. Consumer Staples Select Sector SPDR Fund (XLP 0.19%)

What are the top three ETFs? ›

Top U.S. market-cap index ETFs
Fund (ticker)YTD performanceExpense ratio
Vanguard S&P 500 ETF (VOO)10.4 percent0.03 percent
SPDR S&P 500 ETF Trust (SPY)10.4 percent0.095 percent
iShares Core S&P 500 ETF (IVV)10.4 percent0.03 percent
Invesco QQQ Trust (QQQ)8.6 percent0.20 percent

What ETF has the highest ROI? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
GBTCGrayscale Bitcoin Trust53.74%
USDProShares Ultra Semiconductors43.98%
FNGOMicroSectors FANG+ Index 2X Leveraged ETNs41.45%
FNGUMicroSectors FANG+™ Index 3X Leveraged ETN40.88%
93 more rows

Should I invest in ETF or S&P 500? ›

Key Takeaways. Dividend ETFs invest in high-yielding dividend stocks to maintain a stable, steady income. The S&P 500 is a broad-based index of large U.S. stocks, providing growth and diversification. The best choice for you will depend on whether you prefer income or growth from your investments.

Why buy ETF instead of index? ›

ETFs may be more accessible and easier to trade for retail investors because they trade like shares of stock on exchanges. They also tend to have lower fees and are more tax-efficient.

Is VOO or VTI better? ›

Both have the same expense ratio and similar dividend yield, so you should choose whichever one you prefer based on the fund's strategy. If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI.

Is it better to invest in one ETF or many? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Which ETF has the highest return? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
QQQInvesco QQQ Trust Series I18.25%
IGMiShares Expanded Tech Sector ETF18.06%
IWYiShares Russell Top 200 Growth ETF17.93%
SCHGSchwab U.S. Large-Cap Growth ETF17.29%
93 more rows

Is it smart to only invest in ETFs? ›

ETFs can be a great investment for long-term investors and those with shorter-term time horizons. They can be especially valuable to beginning investors. That's because they won't require the time, effort, and experience needed to research individual stocks.

Should I put most of my money in ETFs? ›

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.

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