ETFs or exchange-traded funds have become a great source of investment for a lot of people. Although traded like stocks, you don’t buy shares of just one company. Instead, you get the flexibility to purchase a basket full of hundreds or thousands of stocks. However, picking suitable ones can be pretty challenging. So, to guide you, here are some of the best ETF stocks to buy right now.
SPY has always been and is likely to remain one of the best ETF stocks to buy. What makes it highly preferable is that it is extremely liquid, which is definitely one of the most important qualities you should look for. Along with trading more than 74 million shares per day, SPY, with its low expense ratio of 0.09%, actually offers you the simplest way of betting on a large business in the USA. So, whether you are an amateur or an expert, investing in SPY can help you achieve significant returns without doing much research.
Ark Genomic Revolution
This is an actively managed fund, which indicates that its expense ratio is higher than those passively managed. This fund likes to invest in high-reward, high-risk and cutting-edge biotechnology and healthcare names. Its exceptional record of returning a 40.3% compounded interest over the last five years is hard to beat. Moreover, it will only cost you 0.75% annually to own its stocks.
Schwab U.S. Small-Cap
If you are wondering which ETF stocks to buy, consider choosing Schwab U.S. Small-Cap. With more than 1,850 holdings and an average market capitalization of $4.6 billion, this is genuinely a well-diversified fund. This 15-billion fund offers the needed exposure to those investors who are not well-aware of the lesser-known names.
Vanguard FTSE All-World ex-US
This is one fund that allows you to experience diversification in a true sense by enabling you to gain access to other economies and currencies. Its 0.08% expense ratio is quite low, especially for international ETFs that usually have higher management fees. In addition, it holds more than 3,500 stocks across all the geographies, excluding the USA. So, if you wish to switch your investment geographically, this can undoubtedly be a dependable option.
Regardless of whether you are new to the stock purchase or have been doing it for years, ETFs allow you to build a strong investment portfolio and enjoy high returns. To put your money in the right stocks, you can refer to the list of some of the best ETF stocks to buy mentioned above.