What is the best ETF to buy and hold?
Buffett's favorite ETF
portfolio: the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard 500 Index Fund ETF (NYSEMKT: VOO).
ETF | Assets Under Management | Expense Ratio |
---|---|---|
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% |
Vanguard U.S. Quality Factor ETF (VFQY) | $292 million | 0.13% |
Symbol | Name | 5-Year Return |
---|---|---|
ITB | iShares U.S. Home Construction ETF | 26.46% |
XLK | Technology Select Sector SPDR Fund | 25.52% |
FTXL | First Trust Nasdaq Semiconductor ETF | 24.89% |
XSD | SPDR S&P Semiconductor ETF | 24.83% |
Buffett's favorite ETF
portfolio: the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard 500 Index Fund ETF (NYSEMKT: VOO).
QQQ - Performance Comparison. In the year-to-date period, VOO achieves a 7.69% return, which is significantly higher than QQQ's 7.20% return. Over the past 10 years, VOO has underperformed QQQ with an annualized return of 12.70%, while QQQ has yielded a comparatively higher 18.16% annualized return.
- Vanguard S&P 500 ETF (VOO)
- Schwab U.S. Small-Cap ETF (SCHA)
- Invesco QQQ Trust (QQQ)
- Vanguard High Dividend Yield Index ETF (VYM)
- Vanguard Total International Stock ETF (VXUS)
- Vanguard Total World Stock ETF (VT)
- iShares Core U.S. Aggregate Bond ETF (AGG)
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- Vanguard Growth ETF. ...
- Vanguard Mega-Cap Growth ETF. ...
- iShares Russell Mid-Cap Growth ETF. ...
- Vanguard Small-Cap Growth ETF. ...
- iShares MSCI EAFE Growth ETF. ...
- ARK Innovation ETF.
Symbol | Name | Avg Daily Share Volume (3mo) |
---|---|---|
SPXU | ProShares UltraPro Short S&P500 | 27,874,479 |
TNA | Direxion Daily Small Cap Bull 3X Shares | 24,946,064 |
SPXS | Direxion Daily S&P 500 Bear 3X Shares | 24,175,125 |
GDX | VanEck Gold Miners ETF | 24,090,291 |
MarketWatch spotlights VanEck Morningstar Wide Moat ETF (MOAT), consistently outperforming the S&P 500 by targeting companies with long-term competitive advantages or "economic moats."
- 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.
What two ETFs are good enough for Warren Buffett?
Warren Buffett has long recommended the S&P 500 index fund and ETF, and through his holding company Berkshire Hathaway, he also owns two of these types of investments: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
Here's a summary of which one to choose:
If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI. If you can't decide, consider simply buying both of them (assuming that commissions are low or free).
Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (VOO 0.72%) and the SPDR S&P 500 ETF Trust (SPY 0.71%). An S&P 500 ETF tracks the S&P 500 index itself.
VOO will offer consistent returns with diversification and lower costs. QQQ will offer you the opportunity to bring in higher returns, but these come with more risks and a higher cost. If you're looking for the best return possible on your money, then you're going to want to go with QQQ.
The QQQ ETF offers investors big rewards during bull markets, the potential for long-term growth, ready liquidity, and low fees. QQQ usually declines more in bear markets, has high sector risk, often appears overvalued, and holds no small-cap stocks.
Market capitalization
This is due to the fact that many large issuers are included in both S&P 500 and NASDAQ-100. Moreover, they have a significant weight in these indices. Therefore, it makes no sense to add both QQQ and SPY to your portfolio. This is not diversification from the point of view of a set of stocks.
For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
ETFs can be safe investments if used correctly, offering diversification and flexibility. Indexed ETFs, tracking specific indexes like the S&P 500, are generally safe and tend to gain value over time. Leveraged ETFs can be used to amplify returns, but they can be riskier due to increased volatility.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
What is the most aggressive ETF?
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.82B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 18.26%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
Look at the ETF's underlying index (benchmark) to determine the exposure you're getting. Evaluate tracking differences to see how well the ETF delivers its intended exposure. And look for higher volumes and tighter spreads as an indication of liquidity and ease of access.
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 can be a great investment for long-term investors and those with shorter-term time horizons. They can be especially valuable to beginning investors. That's because they won't require the time, effort, and experience needed to research individual stocks.
- SPDR S&P Emerging Markets Dividend ETF ( EDIV ) – Up 40.9%; Yield 4.26% annually.
- WisdomTree Japan Hedged SmallCap Equity Fund ( DXJS ) – Up 37.9%; Yield 2.71% annually.
- First Trust NASDAQ Technology Dividend Index Fund ( TDIV ) – Up 37.3%; Yield 1.74% annually.
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