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Saturday, December 29, 2018

The Top 3 ETFs for Long-Term Investors






VTI is an extremely efficient fund with a low expense ratio. The stock is now trading at $150.53, near its all-time highs of over $146, hit on January 26, 2018. Since hitting that high, the stock has see-sawed a bit. Investors will need to decide if current levels warrant an entry or if it is better to hold off a bit longer. Long-term performance figures are steady and impressive, with one-year, three-year and five-year average annual returns of 20.28%, 15.86%, and 14.25%, respectively. (For related insight, read more about whether VTI is the best index fund.)
2. The SPDR S&P 500 ETF (SPY)
  Issuer: State Street Global Advisors
    Assets under management: $274.95 billion
    YTD performance: 9.71%
    Expense ratio: 0.09%

This is the granddaddy of ETFs � the oldest and most easily recognized of the exchange-traded funds. It tops the list in terms of AUM and trading volume, making it appropriate for both tactical traders and buy-and-hold investors. The fund tracks the S&P 500, which is a group of equities from the U.S. large-cap space (although not always the largest) selected by a committee.

Technically, SPY is a unit investment trust (UIT), which means that the fund can't reinvest cash dividends between distributions, a minor detail that may slightly affect performance compared with the index. Regardless, this fund has respectable one-year, three-year and five-year performance figures at 19.49%, 12.39%, and 15.98%, respectively.
3. The iShares Core MSCI EAFE ETF.

    Issuer: iShares
    Assets under management: $58.38 billion
    YTD performance: -1.86%
    Expense ratio: 0.09%

IEFA delivers exposure to developed-market stocks in Europe, Australasia and the Far East, excluding domestic and Canadian equities. Its benchmark index, the MSCI EAFE, covers about 98% of investable markets and includes small caps in proportion to the market, which is something that competing funds don't do. Japan and the U.K. take the top two spots in the fund's portfolio, which is tilted toward financials and industrials.

There are 2,483 equities in the fund, which is well diversified, with the top ten holdings accounting for 9.4% of the total portfolio. This is a highly liquid fund with tight spreads and low ownership costs, making it a good choice for both long- and short-term investors who want exposure to markets outside of North America. The fund is newer than the other two, with an inception date of October 18, 2012. Year-to-date, the price of the stock has seesawed and is currently unchanged. Nonetheless, the one-year, three year and five-year performance figures are positive, at 4.65%, 7.84%, and 6.45%, respectively.

Source:https://www.investopedia.com/articles/etfs/top-etfs-long-term-investments/

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