Who are the best ETF providers?
ETFs are among the most popular and affordable investment options available to investors. Vanguard, BlackRock, and State Street dominate the ETF market with the most offerings. The five largest ETF issuers have more than $100 billion each in ETF assets under management.
- Mirae Asset NYSE FANG+ETF. ...
- Motilal Oswal Nasdaq Q 50 ETF. ...
- Motilal Oswal NASDAQ 100 ETF. ₹145.26. ...
- ICICI Prudential Nifty 100 Low Vol 30 ETF. ₹18.16. ...
- ICICI Prudential Nifty Private Banks ETF. ₹24.72. ...
- Nippon India Nifty Auto ETF. -- ...
- HDFC Nifty 100 ETF. ₹22.51. ...
- Mirae Asset Nifty India Manufacturing ETF. ₹120.17.
No. | Provider Name | Total Assets |
---|---|---|
1 | BlackRock | 2,732.49B |
2 | Vanguard | 2,530.68B |
3 | State Street | 1,291.53B |
4 | Invesco | 501.37B |
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.
ETF | Assets Under Management | Expense Ratio |
---|---|---|
Invesco QQQ Trust (ticker: QQQ) | $240 billion | 0.2% |
Vanguard Information Technology ETF (VGT) | $71.7 billion | 0.1% |
Invesco AI and Next Gen Software ETF (IGPT) | $254 million | 0.6% |
MicroSectors FANG+ Index 3X Leveraged ETN (FNGU) | $3.3 billion | 0.95% |
- #1. iShares® ESG Advanced MSCI USA ETF USXF.
- #2. Direxion NASDAQ-100® Equal Wtd ETF QQQE.
- #3. JPMorgan US Momentum Factor ETF JMOM.
Symbol | Name | Avg Daily Share Volume (3mo) |
---|---|---|
LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | 30,085,430 |
SPXU | ProShares UltraPro Short S&P500 | 28,087,125 |
UVXY | ProShares Ultra VIX Short-Term Futures ETF | 27,160,930 |
SPXS | Direxion Daily S&P 500 Bear 3X Shares | 25,327,875 |
iShares. iShares is the largest ETF brand in the United States, with more than 1,250 ETFs on the market and $2.5 trillion in assets under management, or AUM. The issuer behind this mega brand is BlackRock Inc. (ticker: BLK), a global investment management firm.
Vanguard is the world's second-largest investment company or brokerage firm, offering a range of active and passive options, as well as a competitive fee structure and other attractive selling points. BlackRock, Inc. is the world's largest investment firm and asset manager.
The reigning king
The SPDR S&P 500 ETF Trust (SPY) remains at the forefront of S&P 500 ETFs, boasting an impressive $478 billion in assets under management (AUM). Remarkably, this ETF celebrated its 31st anniversary on January 22, 2024, coinciding with the day the S&P 500 index reached its recent all-time high.
Is it better to have multiple ETFs or one?
How to build an optimally diversified portfolio? Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
Market risk
The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.
There is no reason to buy multiple ETFs targeting the same segment (don't need to buy two different S&P 500 ETFs). However, many people do use multiple ETFs to create the desired factor diversification. For example, someone might have a portfolio with: VTI or FXROX - US Total Stock Market.
1. Vanguard S&P 500 ETF (VOO -0.13%) Legendary investor Warren Buffett has said that the best investment the average American can make is a low-cost S&P 500 index fund like the Vanguard S&P 500 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.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
ETFs offer advantages over stocks in two situations. First, when the return from stocks in the sector has a narrow dispersion around the mean, an ETF might be the best choice. Second, if you are unable to gain an advantage through knowledge of the company, an ETF is your best choice.
"Overall, Vanguard's ETFs are widely acknowledged as dependable choices for investors seeking cost-effective means to achieve diversified exposure," August says. A great example is VT, which provides investors with exposure to over 9,800 global equities, all for a 0.07% expense ratio.
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.85B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 21.87%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
FUND(TICKER) | EXPENSE RATIO | 10-YEAR RETURN AS OF MARCH 1 |
---|---|---|
Vanguard Growth ETF (VUG) | 0.04% | 13.97% |
iShares Russell 1000 Growth ETF (IWF) | 0.19% | 14.66% |
iShares S&P 500 Growth ETF (IVW) | 0.18% | 13.16% |
Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 14.88% |
What is the average return on an ETF?
What is the Average ETF Return? The average ETF return will vary depending on each fund's strategy and goals. However, broad market ETFs generate an average return between 7-10%. You can invest in ETFs that track specific types of stocks, such as high dividend-paying companies.
- Open a brokerage account. You'll need a brokerage account to buy and sell securities like ETFs. ...
- Find and compare ETFs with screening tools. Now that you have your brokerage account, it's time to decide what ETFs to buy. ...
- Place the trade. ...
- Sit back and relax.
Ticker | Fund | 10-Yr Return |
---|---|---|
PSI | Invesco Dynamic Semiconductors ETF | 23.59% |
XSD | SPDR S&P Semiconductor ETF | 21.88% |
XLK | Technology Select Sector SPDR Fund | 19.88% |
VGT | Vanguard Information Technology ETF | 19.60% |
How do the funds differ? The key difference is the index they track. The iShares ETF from BlackRock attempts to replicate the MSCI World index, while the Vanguard ETF tries to track the FTSE All-World index. MSCI World just includes shares from developed markets, with the ETF investing in 1,514 companies.
Vanguard isn't owned by shareholders. It's owned by the people who invest in our funds. Our owners have access to personalized financial advice, high-quality investments, retirement tools, and relevant market insights that help them build a future for those they love.
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