Best ETFs For September 2022 | Bankrate (2022)

Exchange-traded funds (ETFs) allow investors to buy a collection of stocks or other assets in just one fund with (usually) low expenses, and they trade on an exchange like stocks. ETFs have become tremendously popular in the last decade and now hold trillions of dollars in assets. With literally thousands of ETFs to choose from, where does an investor start? Below are some of the top ETFs by category, including some highly specialized funds.

What is an ETF and how does it work?

An exchange-traded fund may hold positions in many different assets, including stocks, bonds and sometimes commodities.ETFs most often track a specific index such as the Standard & Poor’s 500 or the Nasdaq 100, meaning they hold positions in the index companies at their same relative weights in the index.So by buying one share in the ETF, an investor effectively purchases a (tiny) share in all the assets held in the fund.

ETFs are often themed around a specific collection of stocks. An S&P 500 index fund is one of the most popular themes, but themes also include value or growth stocks, dividend-paying stocks, country-based investments, disruptive technologies, specific industries like information technology or healthcare, various bond maturities (short, medium and long) and many others.

For running an ETF, the fund company charges a fee called an expense ratio. The expense ratio is the annual percentage of your total investment in the fund. For example, an ETF might charge a fee of 0.12 percent. That means on an annual basis an investor would pay $12 for every $10,000 invested in the fund. Low-cost ETFs are very popular with investors.

Best ETFs of September 2022 by type:

  • Equity ETFs
  • Bond ETFs
  • Balanced ETFs
  • Commodity ETFs
  • Currency ETFs
  • Real estate ETFs
  • Volatility ETFs
  • Leveraged ETFs
  • Inverse ETFs

Top equity ETFs

Equity ETFs provide exposure to a portfolio of publicly traded stocks, and may be divided into several categories by where the stock is listed, the size of the company, whether it pays a dividend or what sector it’s in. So investors can find the kind of stock funds they want exposure to and buy only stocks that meet certain criteria.

Stock ETFs tend to be more volatile than other kinds of investments such as CDs or bonds, but they’re suitable for long-term investors looking to build wealth. Some of the most popular equity ETF sectors and their historical performance (as of August 31, 2022) include:

Top U.S. market-cap index ETFs

This kind of ETF gives investors broad exposure to publicly traded companies listed on American exchanges using a passive investment approach that tracks a major index such as the S&P 500 or Nasdaq 100.

Vanguard S&P 500 ETF (VOO)

  • 2022 YTD performance: -15.5 percent
  • Historical performance (annual over 5 years): 12.1 percent
  • Expense ratio: 0.03 percent
  • Some of the most widely held ETFs in this group also include SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV) and Invesco QQQ Trust (QQQ).

Top international ETFs

This kind of ETF can provide targeted exposure to international publicly traded companies broadly or by more specific geographic area, such as Asia, Europe or emerging markets. Investing in foreign companies introduces concerns such as currency risk and governance risks, since foreign countries may not offer the same protections for investors as the U.S. does.

Vanguard FTSE Developed Markets ETF (VEA)

  • 2022 YTD performance: -19.1 percent
  • Historical performance (annual over 5 years): 2.3 percent
  • Expense ratio: 0.05 percent
  • Some of the most widely held ETFs also include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Total International Stock ETF (VXUS).

Top sector ETFs

This kind of ETF gives investors a way to buy stock in specific industries, such as consumer staples, energy, financials, healthcare, technology and more. These ETFs are typically passive, meaning they track a specific preset index of stocks and simply mechanically follow the index.

Vanguard Information Technology ETF (VGT)

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  • 2022 YTD performance: -22.8 percent
  • Historical performance (annual over 5 years): 19.8 percent
  • Expense ratio: 0.10 percent
  • Some of the most widely held ETFs also include Financial Select Sector SPDR Fund (XLF), Energy Select Sector SPDR Fund (XLE) and Industrial Select Sector SPDR Fund (XLI).

Dividend ETFs

This kind of ETF gives investors a way to buy only stocks that pay a dividend. A dividend ETF is usually passively managed, meaning it mechanically tracks an index of dividend-paying firms. This kind of ETF is usually more stable than a total market ETF, and it may be attractive to those looking for investments that produce income, such as retirees.

The best dividend ETFs tend to offer higher returns and low cost.

Vanguard Dividend Appreciation ETF (VIG)

  • 2022 YTD performance: -12.5 percent
  • Historical performance (annual over 5 years): 12.1 percent
  • Expense ratio: 0.06 percent
  • Some of the most widely held ETFs here also include) Vanguard High Dividend Yield Index ETF (VYM) and Schwab U.S. Dividend Equity ETF (SCHD).

Top bond ETFs

A bond ETF provides exposure to a portfolio of bonds, which are often divided into sub-sectors depending on bond type, their issuer, maturity and other factors, allowing investors to buy exactly the kind of bonds they want. Bonds pay out interest on a schedule, and the ETF passes this income on to holders.

Bond ETFs can be an attractive holding for those needing the safety of regular income, such as retirees. Some of the most popular bond ETF sectors and their returns include:

Long-term bond ETFs

This kind of bond ETF gives exposure to bonds with a long maturity, perhaps as long as 30 years out. Long-term bond ETFs are most exposed to changes in interest rates, so if rates move higher or lower, these ETFs will move inversely to the direction of rates. While these ETFs may pay a higher yield than shorter-term bond ETFs, many don’t see the reward as worthy of the risk.

iShares MBS ETF (MBB)

  • 2022 YTD performance: -8.9 percent
  • Historical performance (annual over 5 years): 0.1 percent
  • Expense ratio: 0.04 percent
  • Some of the most widely held ETFs also include iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Mortgage-Backed Securities ETF (VMBS).

Short-term bond ETFs

This kind of bond ETF gives exposure to bonds with a short maturity, typically no more than a few years. These bond ETFs won’t move much in response to changes to interest rates, meaning they’re relatively low risk. These ETFs can be a more attractive option than owning the bonds directly because the fund is highly liquid and more diversified than any individual bond.

Vanguard Short-Term Bond ETF (BSV)

  • 2022 YTD performance: -4.8 percent
  • Historical performance (annual over 5 years): 0.8 percent
  • Expense ratio: 0.04 percent
  • Some of the most widely held ETFs in this category also include iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury ETF (VGSH).

Total bond market ETFs

This kind of bond ETF gives investors exposure to a wide selection of bonds, diversified by type, issuer, maturity and region. A total bond market ETF provides a way to gain broad bond exposure without going too heavy in one direction, making it a way to diversify a stock-heavy portfolio.

Vanguard Total Bond Market ETF (BND)

  • 2022 YTD performance: -10.4 percent
  • Historical performance (annual over 5 years): 0.6 percent
  • Expense ratio: 0.03 percent
  • Some of the most widely held ETFs also include iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total International Bond ETF (BNDX).

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Municipal bond ETFs

This kind of bond ETF gives exposure to bonds issued by states and cities, and interest on these bonds is typically tax-free, though it’s lower than that paid by other issuers. Muni bonds have traditionally been one of the safest areas of the bond market, though if you own out-of-state munis in a fund, you will lose the tax benefits in your home state, though not at the federal level. Given the tax advantages, it is advantageous to consider a municipal bond ETF that invests in your state of residence.

iShares National Muni Bond ETF (MUB)

  • 2022 YTD performance: -8.1 percent
  • Historical performance (annual over 5 years): 1.1 percent
  • Expense ratio: 0.07 percent
  • Some of the most widely held ETFs also include Vanguard Tax-Exempt Bond ETF (VTEB) and iShares Short-Term National Muni Bond ETF (SUB).

Top balanced ETFs

A balanced ETF owns both stock and bonds, and it targets a certain exposure to stock, which is often reflected in its name. These funds allow investors to have the long-term returns of stocks while reducing some of the risk with bonds, which tend to be more stable. A balanced ETF may be more suitable for long-term investors who may be a bit more conservative but need growth in their portfolio.

iShares Core Aggressive Allocation ETF (AOA)

  • 2022 YTD performance: -15.5 percent
  • Historical performance (annual over 5 years): 5.9 percent
  • Expense ratio: 0.15 percent
  • Some of the most widely held balanced ETFs also include iShares Core Growth Allocation ETF (AOR) and iShares Core Moderate Allocation ETF (AOM).

Top commodity ETFs

A commodity ETF gives investors a way to own specific commodities, including agricultural goods, oil, precious metals and others without having to transact in the futures markets. The ETF may own the commodity directly or via futures contracts. Commodities tend to be quite volatile, so they may not be well-suited for all investors. However, these ETFs may allow more advanced investors to diversify their holdings, hedge out exposure to a given commodity in their other investments or make a directional bet on the price of a given commodity. The best-performing gold ETFs tend to offer highly effective portfolio diversification with added defensive stores of value.

SPDR Gold Shares (GLD)

  • 2022 YTD performance: -6.1 percent
  • Historical performance (annual over 5 years): 5.2 percent
  • Expense ratio: 0.40 percent
  • Some of the most widely held commodities ETFs also include iShares Silver Trust (SLV), United States Oil Fund LP (USO) and Invesco DB Agriculture Fund (DBA).

Top currency ETFs

A currency ETF gives investors exposure to a specific currency by simply buying an ETF rather than accessing the foreign exchange (forex) markets. Investors can gain access to some of the world’s most widely traded currencies, including the U.S. Dollar, the Euro, the British Pound, the Swiss Franc, the Japanese Yen and more. These ETFs are more suitable for advanced investors who may be seeking a way to hedge out exposure to a specific currency in their other investments or to simply make a directional bet on the value of a currency.

Invesco DB US Dollar Index Bullish Fund (UUP)

  • 2022 YTD performance: 13.7 percent
  • Historical performance (annual over 5 years): 4.5 percent
  • Expense ratio: 0.75 percent
  • Some of the most widely held currency ETFs also include Invesco CurrencyShares Euro Trust (FXE) and Invesco CurrencyShares Swiss Franc Trust (FXF).

Top real estate ETFs (REIT ETFs)

Real estate ETFs usually focus on holding stocks classified as REITs, or real estate investment trusts. REITs are a convenient way to own an interest in companies that own and manage real estate, and REITs operate in many sectors of the market, including residential, commercial, industrial, lodging, cell towers, medical buildings and more. REITs typically pay out substantial dividends, which are then passed on to the holders of the ETF. These payouts make REITs and REIT ETFs particularly popular among those who need income, especially retirees. The best ETF REITs maximize dividend yields, as dividends are the main reason for investing in them.

Vanguard Real Estate ETF (VNQ)

  • 2022 YTD performance: -18.5 percent
  • Historical performance (annual over 5 years): 6.1 percent
  • Expense ratio: 0.12 percent
  • Some of the most widely held real estate ETFs also include iShares U.S. Real Estate ETF (IYR) and Schwab U.S. REIT ETF (SCHH).

Top volatility ETFs

ETFs even allow investors to bet on the volatility of the stock market through what are called volatility ETFs. Volatility is measured by the CBOE Volatility Index, commonly known as the VIX. Volatility usually rises when the market is falling and investors become uneasy, so a volatility ETF can be a way to hedge your investment in the market, helping to protect it. Because of how they’re structured, they’re best-suited for traders looking for short-term moves in the market, not long-term investors looking to profit from a rise in volatility.

iPath Series B S&P 500 VIX Short-Term Futures (VXX)

  • 2022 YTD performance: 5.1 percent
  • Historical performance (annual over 3 years): -43.5 percent
  • Expense ratio: 0.89 percent
  • Some of the most widely held volatility ETFs also include the ProShares VIX Mid-Term Futures ETF (VIXM) and the ProShares Short VIX Short-Term Futures ETF (SVXY).

Top leveraged ETFs

A leveraged ETF goes up in value more rapidly than the index it’s tracking, and a leveraged ETF may target a gain that’s two or even three times higher than the daily return on its index. For example, a triple-leveraged ETF based on the S&P 500 should rise 3 percent on a day the index rises 1 percent. A double leveraged ETF would target a double return. Because of how leveraged ETFs are structured, they’re best-suited for traders looking for short-term returns on the target index over a few days, rather than long-term investors.

ProShares UltraPro QQQ (TQQQ)

  • 2022 YTD performance: -65.9 percent
  • Historical performance (annual over 5 years): 24.9 percent
  • Expense ratio: 0.95 percent
  • Some of the most widely held leveraged ETFs also include ProShares Ultra QQQ (QLD), Direxion Daily Semiconductor Bull 3x Shares (SOXL) and ProShares Ultra S&P 500 (SSO).

Top inverse ETFs

Inverse ETFs go up in value when the market declines, and they allow investors to buy one fund that inversely tracks a specific index such as the S&P 500 or Nasdaq 100. These ETFs may target the exact inverse performance of the index, or they may try to offer two or three times the performance, like a leveraged ETF. For example, if the S&P 500 fell 2 percent in a day, a triple inverse should rise about 6 percent that day. Because of how they’re structured, inverse ETFs are best-suited for traders looking to capitalize on short-term declines in an index.

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ProShares Short S&P 500 ETF (SH)

  • 2022 YTD performance: 14.5 percent
  • Historical performance (annual over 5 years): -13.4 percent
  • Expense ratio: 0.88 percent
  • Some of the most widely held inverse ETFs also include ProShares UltraPro Short QQQ (SQQQ) and ProShares UltraShort S&P 500 (SDS).

How to invest in ETFs

It’s relatively easy to invest in ETFs, and this fact makes them popular with investors. You can buy and sell them on an exchange like a regular stock. Here’s how to invest in an ETF:

1. Find which ETF you want to buy

You have a choice of more than 2,000 ETFs trading in the U.S., so you’ll have to sift through the funds to determine which one you want to buy.

One good option is to buy an index fund based on the S&P 500, since it includes the top publicly traded stocks listed in the U.S. (Plus, it’s the recommendation of super investor Warren Buffett.) But other broad-based index funds can also be a good choice, reducing (but not eliminating) your investment risk. Many companies offer similar index funds, so compare the expense ratio on each to see which one offers the best deal.

Once you’ve found a fund to invest in, note its ticker symbol, a three- or four-letter code.

2. Figure out how much you can invest

Now determine how much you’re able to invest in the ETF. You may have a specific amount available to you now that you want to put into the market. But what you can invest may also depend on the price of the ETF.

An ETF may trade at a price of $10 or $15 or maybe even a few hundred dollars per share. Generally, you’ll need to buy at least one whole share when placing an order. However, if you use a broker that allows fractional shares, you can put any amount of money to work, regardless of the ETF price. In many cases these brokers do not charge a trading commission either.

Fortunes are built over years, so it’s important to continue to add money to the market over time. So you should also determine how much you can add to the market regularly over time.

3. Place the order with your broker

Now it’s time to place the order with your broker. If you have money in the account already, you can place the trade using the ETF’s ticker symbol. If not, deposit money into the account and then place the trade when the money clears.

If you don’t have a brokerage account, it usually takes just a few minutes to set one up. A handful of brokers such as Robinhood and Webull allow you to instantly fund your account. So in some cases you could be started and fully trading in minutes.

Protect yourself from inflation with ETFs

Inflation is the persistent increase in prices over time, and it gradually reduces your purchasing power. As the economy reopened following the COVID-19 shutdown, business and consumers have rushed to spend, pushing prices on many goods and services higher. To protect yourself from inflation, you need investments that rise faster than it does. And one way to do that is to actually own the businesses – or stock in them – that benefit from inflation.

Often the beneficiary is a high-quality business that can push on those rising prices to consumers. By owning a stake in the business – through stock or a collection of stocks in an ETF – you can benefit when your companies raise their prices. So owning stock can be a way to protect yourself from inflation.

Investors have a good choice of ETFs when it comes to hedging against inflation. Two of the most popular ETFs include index funds based on the Standard & Poor’s 500 index and the Nasdaq 100 index, which contain high-quality businesses listed on American exchanges:

  • Vanguard S&P 500 ETF (VOO), with an expense ratio of 0.03 percent
  • Invesco QQQ Trust (QQQ), with an expense ratio of 0.20 percent

Both are low-cost funds that give you stakes in some of the world’s best companies, helping protect you from inflation.

What to know about crypto and ETFs in 2022

Currently, there are no ETFs that allow you to invest directly in Bitcoin or other cryptocurrencies. Several companies, including Fidelity, have applied with the Securities and Exchange Commission (SEC) to offer Bitcoin ETFs, but the agency has been slow to approve them. In a recent statement, the SEC questioned whether the Bitcoin futures market could support the entry of ETFs, which aren’t able to limit additional investor assets if a fund were to become too large or dominant.

However, there are ETFs that invest in companies using the technology behind Bitcoin, known as blockchain. These ETFs hold shares in companies such as Microsoft, PayPal, Mastercard and Square. All of these companies use blockchain technology in different parts of their businesses. One thing these ETFs don’t give you is direct exposure to Bitcoin itself, but as blockchain technology continues to grow, the companies in these ETFs could benefit.

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It’s unclear when or if ETFs that invest in Bitcoin or other cryptocurrencies directly will be available for purchase. It’s important to remember that cryptocurrencies are highly speculative investments and don’t produce anything for their owners. ETFs that focus on blockchain may ultimately be a safer way to profit from its future innovation.

Exchange-traded fund (ETF) FAQ

Are ETFs a good type of investment?

ETFs are a good kind of investment because of the benefits they deliver to investors, and ETFs can generate significant returns for investors, if they select the right funds.

ETFs provide several benefits to investors, including the ability to buy multiple assets in one fund, the risk-reducing benefits of diversification and the generally low costs to manage the fund. The cheapest funds are generally passively managed and may cost just a few dollars annually for every $10,000 invested. Plus, passively managed ETFs often perform much better than actively managed ones.

How an individual ETF performs depends completely on the stocks, bonds and other assets that it owns. If these assets rise in value, then the ETF will rise in value, too. If the assets fall, so will the ETF. The performance of the ETF is just the weighted average of the return of its holdings.

So not all ETFs are the same, and that’s why it’s important to know what your ETF owns.

What’s the difference between ETFs and stocks?

An ETF may hold stakes in many different kinds of assets, including stocks and bonds. In contrast, a stock is an ownership interest in a specific company. While some ETFs consist entirely of stocks, an ETF and stock behave differently:

  • Stocks usually fluctuate more than ETFs. An individual stock usually moves around a lot more than an ETF does. That means you might make or lose more money on an individual stock than you would on an ETF.
  • ETFs are more diversified. By buying a stock ETF you’re taking advantage of the power of diversification, putting your eggs in many different stocks rather than just one stock or a few individual stocks. This helps reduce your risk over time.
  • Returns on a stock ETF depend on many companies, not just one. The performance of an ETF depends on the weighted average performance of its investments, whereas with an individual stock the return depends entirely on the performance of that one company.

Those differences are some of the most important between ETFs and stocks.

What’s the difference between ETFs and mutual funds?

ETFs and mutual funds both have similar structures and benefits. They both can offer a pool of investments such as stocks and bonds, reduced risk due to diversification (compared to single stock holdings or a portfolio of a few stocks), low management fees and the potential for attractive returns.

But these two types of funds differ in some key ways:

  • ETFs are usually passive investments. Most ETFs usually just follow a predetermined index, investing mechanically based on whatever is in the index. In contrast, mutual funds are often actively managed, meaning a fund manager is investing the money, ideally to try to beat the market. Research shows that over the long term passive management usually wins.
  • ETFs are often cheaper than mutual funds. Passive investing is cheaper to set up than active management, where the fund company must pay a team of experts to analyze the market. As a result, ETFs are cheaper than mutual funds as a whole, though passively managed index mutual funds can be cheaper than ETFs.
  • Commissions may be higher with mutual funds. Today, virtually all major online brokers do not charge a commission to buy ETFs. In contrast, many mutual funds do have a sales commission, depending on the brokerage, though many are also offered for no trading commission, too.
  • ETFs do not have sales loads. Sometimes mutual funds may have a sales load, which is a further commission to the salesperson. These funds can be 1 or even 2 percent of your total investment, hurting your returns. ETFs do not have these fees.
  • You can trade ETFs any time the market is open. ETFs trade like stocks on an exchange, and you can place an order during the trading day and know exactly the price you’re paying. In contrast, a mutual fund is priced after the market closes and only then are shares traded.
  • Mutual funds may be forced to make a taxable distribution. At the end of the year mutual funds may have to make a capital gains distribution, which is taxable to its shareholders, even if they haven’t sold the fund. That’s not the case with ETFs.

Those are some of the biggest differences between ETFs and mutual funds, though both do achieve the same goal of providing investors a diversified investment fund. While it may seem that ETFs are clearly better, sometimes mutual funds are the better choice for low costs.

Are ETFs safe for beginners?

ETFs are a good choice for beginners who do not have a lot of experience investing in the markets. But if the ETF is investing in market-based assets such as stocks and bonds, it can lose money. These investments are not insured against loss by the government.

But ETFs can offer a lot to beginners and even more experienced investors who do not want to analyze investments or invest in individual stocks. For example, rather than trying to pick winning stocks, you could simply buy an index fund and own a piece of many top companies.

By investing in many assets, sometimes hundreds, ETFs provide the benefits of diversification, reducing (but not eliminating) the risk for investors, compared to just owning a handful of assets.

So ETFs – depending on what they’re invested in – can be a safe choice for beginners.

When can you sell ETFs?

One of the big advantages of ETFs is their liquidity, meaning that they’re easily convertible to cash. Investors can buy and sell their funds on any day the market is open.

That said, there’s no guarantee that you can get what you paid for the investment.

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Do ETFs have any disadvantages?

ETFs do have some disadvantages but they’re not usually too significant:

  • The ETF is only as good as its holdings. If the ETF owns poorly performing assets, it’s going to perform poorly. The ETF structure can’t turn lead into gold.
  • ETFs won’t be the highest performers. Due to their diversified nature, ETFs will never be among the highest-performing investments. For instance, an automobile industry ETF will never outperform the best-performing individual auto producer.
  • ETFs may not be as focused as they seem. Some ETFs say they give you exposure to a certain country or industry (such as blockchain ETFs). In reality, many of the companies included in these ETFs derive substantial portions of their earnings from outside the target area. For example, an ETF that focuses on Europe may include BMW, though the German car company generates huge sales all over the world. So an ETF can be much less focused on a given investing niche than its name leads you to believe.

For these reasons, you’ll want to understand what assets a given ETF owns and whether that’s what you actually want to own when you buy the ETF.

Recap: Best ETFs of September 2022

  • Vanguard S&P 500 ETF (VOO)
  • Vanguard FTSE Developed Markets ETF (VEA)
  • Vanguard Information Technology ETF (VGT)
  • Vanguard Dividend Appreciation ETF (VIG)
  • iShares MBS ETF (MBB)
  • Vanguard Short-Term Bond ETF (BSV)
  • Vanguard Total Bond Market ETF (BND)
  • iShares National Muni Bond ETF (MUB)
  • iShares Core Aggressive Allocation ETF (AOA)
  • SPDR Gold Shares (GLD)
  • Invesco DB US Dollar Index Bullish Fund (UUP)
  • Vanguard Real Estate ETF (VNQ)
  • iPath Series B S&P 500 VIX Short-Term Futures (VXX)
  • ProShares UltraPro QQQ (TQQQ)
  • ProShares Short S&P 500 ETF (SH)

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

FAQs

What is the best ETF to buy 2022? ›

The Best ETFs of October 2022
Fund Name & TickerExpense Ratio
Invesco RAFI Strategic US Small Company ETF (IUSS)0.23%
Vanguard International Dividend Appreciation ETF (VIGI)0.15%
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)0.04%
Fidelity Total Bond ETF (FBND)0.36%
3 more rows
3 days ago

What is the best ETF at the moment? ›

7 best ETFs to buy now:
  • United States Natural Gas Fund LP (UNG)
  • VanEck Oil Services ETF (OIH)
  • Invesco S&P 500 GARP ETF (SPGP)
  • VictoryShares U.S. Equity Income Enhanced Volatility Weighted ETF (CDC)
  • Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
  • Simplify Interest Rate Hedge (PFIX)
  • Vanguard S&P 500 ETF (VOO)
31 Aug 2022

What should I invest 2022 on? ›

Overview: Best investments in 2022
  • High-yield savings accounts. ...
  • Short-term certificates of deposit. ...
  • Short-term government bond funds. ...
  • Series I bonds. ...
  • Short-term corporate bond funds. ...
  • S&P 500 index funds. ...
  • Dividend stock funds. ...
  • Value stock funds.

Which ETF will grow the most? ›

The Best Growth ETFs Of October 2022
  • Best Growth ETFs of October 2022.
  • Invesco S&P 500 GARP ETF (SPGP)
  • iShares Russell Top 200 Growth ETF (IWY)
  • Vanguard Mega Cap Growth ETF (MGK)
  • Schwab U.S. Large-Cap Growth ETF (SCHG)
  • iShares Russell 1000 Growth ETF (IWF)
  • SPDR Portfolio S&P 500 Growth ETF (SPYG)

What is the fastest growing ETF? ›

For example, year to date, the $241 billion Vanguard S&P 500 ETF (VOO) and the $277 billion iShares Core S&P 500 ETF (IVV) have had the largest inflows, totaling $24 billion and $16.2 billion, respectively.
...
Fastest Growing ETFs Of The Year.
TickerFPAG
FundFPA Global Equity ETF
Fund Assets Now ($M)17
Assets 12/31/21 ($M)1
% Increase1259%
19 more columns
21 Jun 2022

What is the safest ETF to buy? ›

7 best long-term ETFs to buy and hold:
  • Vanguard S&P 500 ETF (VOO)
  • Schwab U.S. Small-Cap ETF (SCHA)
  • Vanguard Total International Stock ETF (VXUS)
  • Vanguard FTSE Emerging Markets ETF (VWO)
  • iShares Core U.S. Aggregate Bond ETF (AGG)
  • iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
  • iShares Core Growth Allocation ETF (AOR)
10 Aug 2022

What ETFs should I have in my portfolio? ›

For most personal investors, an optimal number of ETFs to hold would be 5 to 10 across asset classes, geographies, and other characteristics. Thereby allowing a certain degree of diversification while keeping things simple.

How many ETFs should I own? ›

Although investors have different goals, owning between six and nine ETFs can provide "adequate diversification for the long-term investor seeking moderate growth," said Rich Messina, a senior vice president of investment production management at E-Trade, a New York-based brokerage company.

What ETF pays the highest dividend? ›

25 high-dividend ETFs
SymbolETF nameAnnual dividend yield
IVViShares Core S&P 500 ETF1.25%
VOOVanguard S&P 500 ETF1.24%
VTIVanguard Total Stock Market ETF1.19%
ITOTiShares Core S&P Total U.S. Stock Market ETF1.17%
21 more rows

What is the safest investment with highest return? ›

Here are the best low-risk investments in October 2022:
  • High-yield savings accounts.
  • Series I savings bonds.
  • Short-term certificates of deposit.
  • Money market funds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.

Are we in a bear market 2022? ›

The bear market in the S&P 500 was confirmed on June 13th 2022, but the market began its slide on January 3rd 2022. With this date as the start of the current official bear market, the average bear market of 289 days means that it would finish on 19th October 2022.

Where can I put my money to earn the most interest? ›

ON THIS PAGE
  • High-yield savings account.
  • Certificate of deposit (CD)
  • Money market account.
  • Checking account.
  • Treasury bills.
  • Short-term bonds.
  • Riskier options: Stocks, real estate and gold.
  • Use a financial planner to help you decide.
27 Jun 2022

What ETF has the highest 10 year return? ›

Best Performing Exchange Traded Funds of the Last Decade
  1. Best Technology Sector ETF – iShares PHLX Semiconductor ETF (SOXX) ...
  2. Best Health Care Sector ETF – Invesco S&P SmallCap Health Care ETF (PSCH) ...
  3. Best New US Stocks ETF – First Trust US Equity Opportunities ETF (FPX)

How do I choose the right ETF? ›

Look at the ETF's underlying index (benchmark) to determine the exposure you're getting. Evaluate tracking differences to see how well the ETF delivers its intended exposure. And look for higher volumes and tighter spreads as an indication of liquidity and ease of access.

What is the average return on ETFs? ›

What is the Average ETF Return? The benchmark standard for the ETF is the S&P 500. Most often, the average has fallen to be around 10%. Thus, the average is around 10%.

When should I sell an ETF? ›

If the ETF that's raising fees still offers reasonable value relative to competing ETFs, it might make sense to stay invested." On the other hand, if the fund's performance isn't keeping pace with rising fees, then it may be time to move on to another investment.

What is a high growth ETF? ›

The High Growth ETF invests mainly into growth assets, and is designed for investors with a high tolerance for risk who are seeking long-term capital growth. The ETF targets a 10% allocation to income asset classes and a 90% allocation to growth asset classes.

Are ETFs good long-term investments? ›

ETFs can make great, tax-efficient, long-term investments, but not every ETF is a good long-term investment. For example, inverse and leveraged ETFs are designed to be held only for short periods. In general, the more passive and diversified an ETF is, the better candidate it will make for a long-term investment.

How long should you hold an ETF? ›

“As a rule of thumb, ETF investors should avoid the first and last 30 minutes of trading,” said Matt Hougan, CEO of Inside ETFs. You may want to try to outsmart the market volatility and limit your risk with a stop-loss order, which tells the broker to sell an ETF when it reaches a certain price.

How much should I invest in ETF? ›

You don't need thousands of dollars to start investing in an ETF. You only need enough money to cover the price of 1 share, which can generally range from $50 to a few hundred dollars.

How many index funds should I own? ›

A three-fund portfolio is made up of three index funds or ETFs. Advisors typically suggest choosing a total U.S. stock market index fund, an international stock fund and broad market bond fund. The amount of money you allocate to each fund depends on your age, goals and risk tolerance.

How do you create a balanced ETF portfolio? ›

How to Build a Portfolio with ETFs - YouTube

What is the 3 fund portfolio? ›

A three-fund portfolio aims to diversify your portfolio across three asset classes: domestic stocks, international stocks, and domestic bonds. You can use a three-fund approach in most 401(k) accounts. Investors choose the allocation of funds that suit their goals.

How many portfolios should I have? ›

Generally speaking, many sources say 20 to 30 stocks is an ideal range for most portfolios. It's important to strike a balance between investing in a diverse array of assets and ensuring that you have the time and resources to manage these investments.

How many ETFs are needed for a diversified portfolio? ›

1. Keeping it simple. One option you can consider would be using two ETFs to help provide a balanced, diversified portfolio of stocks and bonds: A total world stock market ETF.

Is an ETF better than an index fund? ›

ETFs are more tax-efficient than index funds by nature, thanks to the way they're structured. When you sell an ETF, you're typically selling it to another investor who's buying it, and the cash is coming directly from them.

Is it better to invest in individual stocks or ETFs? ›

A single stock can potentially return a lot more than an ETF, where you receive the weighted average performance of the holdings. Stocks can pay dividends, and over time those dividends can rise, as the top companies increase their payouts. Companies can be acquired at a substantial premium to the current stock price.

Which Vanguard ETF has the highest dividend? ›

Vanguard Dividend ETFs Paying The Highest Dividends
  • High Dividend Yield ETF (VYM)
  • Dividend Appreciation ETF (VIG)
  • International High Dividend Yield ETF (VYMI)
  • Utilities ETF (VPU)
  • Real Estate ETF (VNQ)

Which Vanguard fund has the highest return? ›

Fastest growing Vanguard funds worldwide in September 2022, by one year return. The fastest growing investment fund managed by U.S. asset management company Vanguard is the Vanguard Energy Index Fund. Over the year to September 1, 2022, the mutual fund generated an annual return of 73.5 percent.

Can I live off dividends? ›

Living off dividends means your portfolio generates a passive income stream that can cover your expenses indefinitely. No more punching the clock to earn a paycheck or worrying about your portfolio's fluctuating value as long as the dividends keep rolling in.

What should a 70 year old invest in? ›

What should a 70-year-old invest in? The average 70-year-old would most likely benefit from investing in Treasury securities, dividend-paying stocks, and annuities. All of these options offer relatively low risk.

Where should I invest my money at age 60? ›

Here are seven investment choices for retirees that have a good risk-return profile, especially when combined as part of a diversified investment portfolio:
  1. 60/40 portfolio.
  2. Bond ladders.
  3. Certificates of deposit (CDs).
  4. Options collar.
  5. Low-volatility stocks.
  6. Series I savings bonds.
  7. Preferred stock.
20 Sept 2022

Where should retirees put their money? ›

What Should Retirees Invest In?
  • Municipal Bonds.
  • Stocks. Though stocks are generally thought of as a risky investment better fit for younger investors, retirees can still find value in looking to the market as part of their investing strategy. ...
  • Real Estate Rentals. ...
  • Certificates of Deposit. ...
  • Alternatives to Cash.
2 Sept 2022

Will the stock market crash again in 2022? ›

Our experts agree that it's likely to be a bumpy road ahead for the remainder of 2022. But, crash or no crash, recession or not, history tells us time and time again this is part of the journey.

How long will the bear market rally last? ›

Bear markets tend to be short-lived.

The average length of a bear market is 289 days, or about 9.6 months. That's significantly shorter than the average length of a bull market, which is 991 days or 2.7 years. Every 3.6 years: That's the long-term average frequency between bear markets.

Is S&P 500 overvalued? ›

Based on the latest S&P 500 monthly data, the market is overvalued somewhere in the range of 76% to 132%, depending on the indicator, up from last month's 65% to 117%.

How can I get 5% interest on my money? ›

Here are the best 5% interest savings accounts you can open today:
  1. Current: 4% up to $6,000.
  2. Aspiration: 3-5% up to $10,000.
  3. NetSpend: 5% up to $1,000.
  4. Digital Federal Credit Union: 6.17% up to $1,000.
  5. Blue Federal Credit Union: 5% up to $1,000.
  6. Mango Money: 6% up to $2,500.
  7. Landmark Credit Union: 7.50% up to $500.
5 days ago

Where can I get 6% interest? ›

Digital Federal Credit Union offers 6.17%, Blue Federal Credit Union offers 5.00%, Landmark Credit Union offers 7.50%, online bank Mango Money offers 6.00% and Consumers Credit Union and online bank T-Mobile Money, both offer 4.00%.

What is the best investment to get monthly income? ›

Best Monthly Income Plans You Should Consider
  • Post Office Monthly Income Scheme.
  • Long-Term Government Bonds.
  • Corporate Deposits.
  • Monthly Income Plans.
  • Pradhan Mantri Vaya Vandana Yojana.
  • Life Insurance Plus Saving.
  • Systematic Withdrawal Plans.
  • Equity Share Dividends.
22 Jul 2022

What is the best performing ETF in last 5 years? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
VOOGVanguard S&P 500 Growth ETF77.27%
IVWiShares S&P 500 Growth ETF76.84%
IHIiShares U.S. Medical Devices ETF75.02%
VUGVanguard Growth ETF74.79%
92 more rows

Which ETFs grew the most in the last three years? ›

100 Highest 3 Year ETF Returns
SymbolName3-Year Return
FTGCFirst Trust Global Tactical Commodity Strategy Fund51.47%
RYEInvesco S&P 500® Equal Weight Energy ETF51.03%
FTECFidelity MSCI Information Technology Index ETF50.86%
VGTVanguard Information Technology ETF50.77%
92 more rows

Can I hold ETF long term? ›

ETFs are very safe and are an excellent option for long-term investments. According to experts, ETFs are not that volatile and show a slight change in their prices compared to stocks and indices because they are diversified and pooled investments of many investors.

Which ETF to buy for beginners? ›

ETF Examples: 10 of the Best ETFs for Beginners

Vanguard Total World Bond Fund (NASDAQ:BNDW) -- Includes international bonds as well as U.S. bonds of various lengths and maturities. Invesco QQQ Trust (NASDAQ:QQQ) - Tracks the Nasdaq-100 Index, which is heavy on tech and other growth stocks.

Do ETFs pay dividends? ›

ETFs are required to pay their investors any dividends they receive for shares that are held in the fund. They may pay in cash or in additional shares of the ETF. So, ETFs pay dividends, if any of the stocks held in the fund pay dividends.

How do you analyze an ETF? ›

Since the job of most ETFs is to track an index, we can assess an ETF's efficiency by weighing the fee rate the fund charges against how well it “tracks”—or replicates the performance of—its index. ETFs that charge low fees and track their indexes tightly are highly efficient and do their job well.

What are the top 5 ETFs to buy? ›

7 best ETFs to buy now:
  • United States Natural Gas Fund LP (UNG)
  • VanEck Oil Services ETF (OIH)
  • Invesco S&P 500 GARP ETF (SPGP)
  • VictoryShares U.S. Equity Income Enhanced Volatility Weighted ETF (CDC)
  • Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
  • Simplify Interest Rate Hedge (PFIX)
  • Vanguard S&P 500 ETF (VOO)
31 Aug 2022

What ETF has the best returns? ›

7 best-performing ETFs of 2022:
  • ProShares Ultra Bloomberg Natural Gas ETF (BOIL): +270%
  • United States Natural Gas Fund LP (UNG): +145.9%
  • ProShares Ultra Oil & Gas ETF (DIG): +96.6%
  • Direxion Daily Energy Bull 2x Shares (ERX): +95.3%
  • Direxion Daily S&P Oil and Gas Exploration & Production Bull 2x Shares ETF (GUSH): +92%
6 Sept 2022

What is the best-performing ETF of all time? ›

Over the past ten years, the U. S. stock market has been most favorable for large-cap growth investments. The large-cap growth-styled Invesco QQQ Trust ETF (QQQ), with an annualized return of 17.0%, is the best-performing ETF in the U. S. equity category.

What should my first ETF be? ›

Top large-cap ETFs

One way for beginner investors to get started is to buy ETFs that track broad market indexes, such as the S&P 500.

How many ETFs should I own? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at. Rather, you should consider the number of different sources of risk you are getting with those ETFs.

How do I choose the right ETF? ›

Look at the ETF's underlying index (benchmark) to determine the exposure you're getting. Evaluate tracking differences to see how well the ETF delivers its intended exposure. And look for higher volumes and tighter spreads as an indication of liquidity and ease of access.

Which is better VOO or VTI? ›

The only real difference between VOO and VTI is that VTI includes small, mid, and large cap stocks, while VOO is only large-cap stocks.

How often should I buy ETFs? ›

The best time to buy ETFs is at regular intervals throughout your lifetime. ETFs are like savings accounts from back when savings accounts actually paid you interest. Think back to a time when you (or your parents!) used to invest in your future by putting money into a savings account.

How much should I put in ETF? ›

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.

What is a good expense ratio for an ETF? ›

A good expense ratio, from the investor's viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high. The expense ratio for mutual funds is typically higher than expense ratios for ETFs. 2 This is because ETFs are passively managed.

When should I sell an ETF? ›

4 Signs That It's Time to Sell an ETF
  • [See: 7 of the Best ETFs to Own in 2017.]
  • A new strategy that isn't a good fit. ...
  • Higher fees without better returns. ...
  • [See: 7 Ways to Pay Less for Your Investments.]
  • Performance that doesn't match the benchmark's. ...
  • A lack of liquidity.
2 Jun 2017

How many ETFs are needed for a diversified portfolio? ›

1. Keeping it simple. One option you can consider would be using two ETFs to help provide a balanced, diversified portfolio of stocks and bonds: A total world stock market ETF.

Is an ETF better than an index fund? ›

ETFs are more tax-efficient than index funds by nature, thanks to the way they're structured. When you sell an ETF, you're typically selling it to another investor who's buying it, and the cash is coming directly from them.

Videos

1. The 6 TOP High Growth ETFs to Buy in 2022!
(Charlie Chang)
2. Top 5 Index Funds with Highest Returns 2022 | Index Funds For Beginners | Harsh Goela
(Goela School of Finance LLP)
3. Top 5 "Buy And Hold" ETFs To Own For Life
(Ryan Scribner)
4. Top 6 Monthly Dividend ETFs For Cash Flow In A Recession 2022
(Jay Fairbrother)
5. The 5 Best Growth ETFs To Buy In 2022! (Vanguard Growth ETFs)
(Steph & Den)
6. ETF Edge, September 7, 2022
(CNBC Television)

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