Choosing the right ETF | BlackRock (2024)

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Choosing the right ETF | BlackRock (2024)

FAQs

How to decide which ETF to buy? ›

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.

How do you evaluate which ETF to buy? ›

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 are the top 5 ETFs to buy? ›

7 Best ETFs to Buy Now
ETFExpense RatioYear-to-date Performance
Global X Copper Miners ETF (COPX)0.65%26.2%
YieldMax NVDA Option Income Strategy ETF (NVDY)1.01%12.9%
iShares Semiconductor ETF (SOXX)0.35%14.9%
Simplify Interest Rate Hedge ETF (PFIX)0.50%22.9%
3 more rows
May 7, 2024

What should be my first ETF? ›

List of 10 Best ETFs for Beginners
TickerFund10-Yr Return
BNDVanguard Total Bond Market ETF1.20%
VIGVanguard Dividend Appreciation ETF10.88%
SCHDSchwab U.S. Dividend Equity ETF10.93%
GLDSPDR Gold Shares5.62%
6 more rows

Is Voo better than Spy? ›

VOO typically provides a higher dividend yield compared to SPY. This aspect is particularly attractive to investors who prioritize income generation from their investments.

How do ETFs work for dummies? ›

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

How many ETFs should I have in my portfolio? ›

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

What ETF is beating the S&P 500? ›

The Vanguard S&P 500 Growth Index Fund ETF (NYSEMKT: VOOG) has trounced the S&P 500 this year with a gain of nearly 15.7%. As its name indicates, this ETF focuses on growth stocks in the S&P 500. There are many of them, as this ETF owns 229 stocks. Its top holdings include Microsoft, Apple, and Nvidia.

Which ETF gives the highest return? ›

6 Best Performing ETFs last 10 years in India
  • Nippon India ETF Nifty 50 BeES. 102.38% 707.9%
  • Nippon India ETF Gold BeES. 99.57% 467.4%
  • Invesco India Gold ETF. 107.00% 288.0%
  • UTI S&P BSE Sensex ETF. 95.56% 200.8%
  • BHARAT 22 ETF. 161.65% 172.2%
  • Nippon India ETF PSU Bank BeES.
Mar 27, 2024

What ETF to buy for beginners? ›

One way for beginner investors to get started is to buy ETFs that track broad market indexes, such as the S&P 500. In doing so, you're investing in some of the largest companies in the country, with the goal of long-term returns. » More: See the best S&P 500 index funds in terms of historical performance.

How much money should I put in an 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.

Should I put all my money in one ETF? ›

Investing in an ETF that tracks a financial services index gives you ownership in a basket of financial stocks versus a single financial company. As the old cliché goes, you do not want to put all your eggs into one basket. An ETF can guard against volatility (up to a point) if some stocks within the ETF fall.

What order type should I use to buy ETFs? ›

Market orders are the simplest and represent the default order at most brokerages. It is simply an order to buy or sell an ETF at the best available price in the market at that moment. Pro: You can buy or sell as quickly as possible, because market orders prioritize speed of execution.

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.

What is the best way to buy an ETF for the S&P 500? ›

To invest in S&P 500 ETFs, investors can gain exposure through discount brokers with commission-free trading. S&P 500 index funds trade through brokers and discount brokers and may be accessed directly from the fund companies.

What is the best preferred ETF? ›

7 Best Preferred Stock ETFs to Invest in Right Now
Preferred Stock ETFDividend Yield*Expense Ratio
Global X U.S. Preferred ETF (PFFD)6.3%0.23%
iShares Preferred and Income Securities ETF (PFF)6.5%0.46%
First Trust Preferred Securities and Income ETF (FPE)5.9%0.84%
Invesco Preferred ETF (PGF)5.5%0.56%
3 more rows
Mar 26, 2024

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