What are the three types of ETFs?
A three-fund portfolio is a portfolio which uses only basic asset classes — usually a domestic stock "total market" index fund, an international stock "total market" index fund and a bond "total market" index fund.
- International ETFs. International ETFs own stocks in companies headquartered outside of the United States.
- Sector ETFs. Sector ETFs own stocks in companies pursuing similar types of business or offering similar products and services. ...
- Dividend ETFs. ...
- Market-cap index ETFs.
A three-fund portfolio is a portfolio which uses only basic asset classes — usually a domestic stock "total market" index fund, an international stock "total market" index fund and a bond "total market" index fund.
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.
The classification of ETFs (Exchange-Traded Funds) is a way to organize these funds based on various characteristics. Typically, the classification occurs on several levels: asset class, category, focus, and niche.
Futures-based commodity ETFs: The most common type of commodity ETF, these funds buy futures, forwards, or swap contracts on the benchmark commodity.
| Ticker | Fund | AUM |
|---|---|---|
| SPY | SPDR S&P 500 ETF Trust | $363.23B |
| IVV | iShares Core S&P 500 ETF | $300.18B |
| VTI | Vanguard Total Stock Market ETF | $288.78B |
| VOO | Vanguard S&P 500 ETF | $286.59B |
Market risk
The single biggest risk in ETFs is market risk.
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.80B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 12.08%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
- T. Rowe Price Blue Chip Growth ETF (TCHP)
- ARK Innovation ETF (ARKK)
- SPDR DoubleLine Total Return Tactical ETF (TOTL)
- Blackrock Large Cap Value ETF (BLCV)
- Fidelity Magellan ETF (FMAG)
- Invesco Active U.S. Real Estate Fund (PSR)
- JPMorgan Equity Premium Income ETF (JEPI)
What is the safest ETF to invest in?
- Vanguard S&P 500 ETF (VOO -0.07%) ...
- Vanguard High Dividend Yield ETF (VYM 0.24%) ...
- Vanguard Real Estate ETF (VNQ 0.19%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT 0.06%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.76%)
Mutual funds and ETFs may hold stocks, bonds, or commodities. Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.
- Vanguard S&P 500 ETF (VOO -0.07%) -- Large U.S. companies.
- Schwab U.S. Mid-Cap ETF (SCHM 0.1%) -- Midsize U.S. companies.
- Vanguard Russell 2000 ETF (NYSEMKT:VTWO) -- Smaller U.S. companies.
- Schwab International Equity ETF (SCHF -0.21%) -- Larger non-U.S. companies.
Mutual funds are usually actively managed, although passively-managed index funds have become more popular. ETFs are usually passively managed and track a market index or sector sub-index. ETFs can be bought and sold just like stocks, while mutual funds can only be purchased at the end of each trading day.
You can make money from ETFs by trading them. And some ETFs pay out the money the ETF makes to investors. These payments are called distributions.
S&P 500 ETFs are exchange-traded funds that passively track this influential U.S. large-cap index. Three of the most popular ETFs that track the S&P 500 are offered by State Street (SPDR), Vanguard (VOO), and iShares (IVV). Index ETFs tend to have lower expense ratios compared to the industry average.
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.
Properties of a good portfolio
Diversification: A well-diversified portfolio should include ETFs that cover different asset classes (stocks, bonds, commodities, etc.), sectors, industries, and geographical regions. This spreads risk and reduces the impact of any single investment on the overall performance.
| Symbol Symbol | ETF Name ETF Name | % In Top 10 % In Top 10 |
|---|---|---|
| AOA | iShares Core Aggressive Allocation ETF | 99.99% |
| AOM | iShares Core Moderate Allocation ETF | 100.01% |
| NTSX | WisdomTree U.S. Efficient Core Fund | 38.29% |
| ACIO | Aptus Collared Investment Opportunity ETF | 35.70% |
| ETF | Price | Average Volume |
|---|---|---|
| SPY SPDR S&P 500 ETF Trust | $503.49 | 73.26M |
| QQQ Invesco QQQ Trust | $424.45 | 45.77M |
| TLT iShares 20+ Year Treasury Bond ETF | $87.78 | 41.56M |
| TQQQ ProShares UltraPro QQQ | $52.85 | 72.96M |
Who are the Big 5 ETF issuers?
| No. | Provider Name | Total Assets |
|---|---|---|
| 2 | Vanguard | 2,480.33B |
| 3 | State Street | 1,257.06B |
| 4 | Invesco | 491.83B |
| 5 | Charles Schwab | 329.70B |
- Schwab Fundamental International Large Company Index ETF (FNDF) ...
- Vanguard Mid Cap Growth ETF (VOT) ...
- Vanguard Intermediate-Term Corporate Bond ETF (VCIT) ...
- iShares Floating Rate Bond ETF (FLOT) ...
- iShares National Muni Bond ETF (MUB) ...
- Avantis U.S. Small Cap Value ETF (AVUV) ...
- Columbia U.S. ESG Equity Income ETF (ESGS)
| Ticker | Fund | 10-Yr Return |
|---|---|---|
| VGT | Vanguard Information Technology ETF | 19.60% |
| IYW | iShares U.S. Technology ETF | 19.58% |
| IXN | iShares Global Tech ETF | 18.20% |
| IGM | iShares Expanded Tech Sector ETF | 17.95% |
| FUND(TICKER) | EXPENSE RATIO | 10-YEAR RETURN AS OF APRIL 1 |
|---|---|---|
| iShares Russell 1000 Growth ETF (IWF) | 0.19% | 15.78% |
| iShares S&P 500 Growth ETF (IVW) | 0.18% | 14.34% |
| Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 15.95% |
| SPDR Portfolio S&P 500 Growth ETF (SPYG) | 0.04% | 14.45% |
- SPDR S&P 500 ETF Trust.
- iShares Core S&P 500 ETF.
- Schwab S&P 500 Index Fund.
- Shelton NASDAQ-100 Index Direct.
- Invesco QQQ Trust ETF.
- Vanguard Russell 2000 ETF.
- Vanguard Total Stock Market ETF.
- SPDR Dow Jones Industrial Average ETF Trust.
