Compare ETFs (2024)

FAQs

How do you compare two ETFs? ›

"You can get broad-based diversification with one ETF, commonly referred to as diversified ETFs, or you can build a portfolio of five to 10 ETFs that would offer good diversification," he says. The choice you make on the above depends on your investment goals and risk appetite, like any investment.

How many ETFs are enough? The answer depends on several factors when deciding how many ETFs you should own. Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

Power Rankings. Compare ETF themes based on popular financial metrics, including 3-month fund flows, 3-month return, AUM, expense ratio, dividend yield and issuer revenue.

With the Delta app, you can track and compare numerous ETFs.

Among similar ETFs, choose the one with lower volatility—a measure of the range of price fluctuation you can expect. Even among index-tracking ETFs with similar objectives, there are factors that can affect their volatility. One is the way the holdings are weighted.

SPY, VOO and IVV are among the most popular S&P 500 ETFs. These three S&P 500 ETFs are quite similar, but may sometimes diverge in terms of costs or daily returns. Investors generally only need one S&P 500 ETF.

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.

These three ETFs--SPY, QQQ, and IWM--provide investors with a diversified approach to the stock market, covering the spectrum from large-cap stability to tech innovation to small-cap growth. They cater to investors aiming for a balanced investment portfolio that taps into various market segments.

Key Takeaways

Tax-loss harvesting can be a great strategy to lower tax exposure but traders must be sure to avoid wash sales. You can't replace a security that you've sold at a loss by purchasing one that's substantially identical from 30 days before the sale until 30 days after it's complete.

Should I invest in multiple ETFs or just one? ›

You don't have to choose just one. Once you know the basics of ETFs, you can consider building an all-ETF portfolio that meets your tolerance for risk and your financial goals while retaining the low investing fees that made ETFs so popular in the first place.

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

Once you have selected an ETF, you can continue to navigate through the ETF search and add new ETFs to your selection at any time. To compare your final selection, select the basket at the top of the ETF search. Select "Compare Selection" from the drop-down menu to go to the comparison overview.

For example, a typical balanced ETF might invest in a target allocation of roughly 60% stocks and 40% bonds. But asset allocation ETFs may take on a more focused objective and aim to cater to specific risk profiles, such as conservative, moderate or aggressive.

The price-to-earnings (P/E) ratio of an ETF measures the collective price of an ETF's holdings relative to their respective earnings. A high P/E ratio indicates that the ETF is overvalued.

A favored measure is tracking difference—a statistic that looks at how far an ETF has lagged its benchmark, on average, over a one-year period. Tracking difference incorporates the effects of an entire range of management decisions, from securities lending to optimization decisions.

Measure how well the ETF tracks the index

Determine how closely the ETF tracks the index returns. See how consistent the ETF's tracking quality is over time. While an ETF is closely aligned with the performance of the index it is tracking, they do not match exactly.

Since you hold investments for different periods of time, the best way to compare their performance is by looking at their annualized percent return. In this example, your annualized return is 9.42 percent. Tip: Use FINRA's Fund Analyzer to find annual and total return for mutual funds and ETFs.

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