The Best ETFs to Buy Now (2024)

Exchange-traded funds (ETFs) offer investors a variety of different strategies to prepare for whatever the market throws at them – Federal Reserve moves, election uncertainty, economic instability and just about everything else under the sun. We kept all of these in mind as we built this list of the best ETFs to buy now.

As we approach the second quarter of 2024, we're still left wondering exactly what kind of year it will be. Most economic statistics point to a robust economy. Real GDP (gross domestic product) finished the fourth quarter of last year up 3.2%, following the third quarter's even stronger 4.9%. Unemployment remains near historic lows.

Inflation remains higher than most of us would like, but it's trending lower. And the Federal Reserve is widely expected to start lowering interest rates in the coming months. The consensus estimate is that the Fed makes its first rate cut over the summer.

Yet risks remain. The yield curve has been inverted since July 2022, with short-term interest rates significantly higher than long-term interest rates. This has traditionally been a warning sign of a coming recession. Mortgage rates hover near 20-year highs, which has had the effect of trapping millions of Americans in their homes and putting existing home sales into a deep freeze. It's hard to justify selling a home financed at a sub-3% rate in order to buy one at close to a 7% rate.

Credit card balances topped $1 trillion for the first time last year, and millions of Americans have seen their budgets crimped by the resumption of student loan payments.

And then, of course, there's the elephant in the room: The 2024 presidential election. There are strong feelings and uncertainty surrounding both current President Joe Biden and former President Donald Trump, who are both the front-runners for their respective parties' nominations. This has the potential to spark volatility in the stock and bond markets in the lead up to November, though the good news for investors is that election years tend to be positive for equities.

So, how do you invest in an environment like this?

By sticking with quality.

ETFs loaded with strong companies that have proven their ability to navigate an uncertain market make sense in this environment.

How do you find the best ETFs to buy?

Today we're going to take a look at five of the best ETFs to buy for 2024. But this of course raises the question of what exactly defines a strong ETF and where we should go to look for them?

To start, it's generally a good idea to stick to relatively broad-market ETFs. You don't have to put your entire portfolio in an S&P 500 index fund, of course, though doing so isn't necessarily a bad idea, particularly if your account is modest in size and diversification is difficult.

Sector ETFs and highly specialized single-strategy ETFs can add value under the right set of circ*mstances, and you may have your reasons for wanting targeted exposure. But it's generally going to make sense to keep those positions relatively small while leaving the bulk of your portfolio in more diversified, broader-market ETFs.

Costs are also a consideration. It's not going to have a major impact on your long-term returns if you hold an ETF with an expense ratio of 0.08% vs 0.10%. Once you reach a certain low-cost threshold, it doesn't move the needle all that much to lower fees by an extra basis point. (A basis point = 0.01%). But every dollar you pay in fees is a dollar you no longer have available to grow and compound. So, all else equal, it makes sense to buy low-cost ETFs rather than those with higher expense ratios.

As for where to look for the best ETFs to buy, we've never had more options. Popular websites such as Yahoo Finance and Morningstar offer simple screeners that allow you to rank ETFs based on the specific criteria you're looking for. Of course, a screener should just be a starting point in your research. You should always take the time to visit the ETF sponsor's website and do a little digging of your own.

Let's take a look at the five best ETFs to buy now. Data is as of March 22. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds.

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Wall Street

The Best ETFs to Buy Now (2024)

FAQs

What is the best ETF to buy right now? ›

The best ETFs to buy now
Exchange-traded fund (ticker)Assets under managementExpenses
Vanguard Dividend Appreciation ETF (VIG)$76.5 billion0.06%
Vanguard U.S. Quality Factor ETF (VFQY)$333.3 million0.13%
SPDR Gold MiniShares (GLDM)$7.4 billion0.10%
iShares 1-3 Year Treasury Bond ETF (SHY)$24.4 billion0.15%
1 more row

What ETF is beating the S&P 500? ›

The Vanguard S&P 500 Growth Index Fund ETF (NYSEMKT: VOOG) has trounced the S&P 500 this year with a gain of nearly 15.7%. As its name indicates, this ETF focuses on growth stocks in the S&P 500. There are many of them, as this ETF owns 229 stocks. Its top holdings include Microsoft, Apple, and Nvidia.

What is the top 3 ETF? ›

Top U.S. market-cap index ETFs
Fund (ticker)YTD performanceExpense ratio
Vanguard S&P 500 ETF (VOO)11.1 percent0.03 percent
SPDR S&P 500 ETF Trust (SPY)11.0 percent0.095 percent
iShares Core S&P 500 ETF (IVV)10.3 percent0.03 percent
Invesco QQQ Trust (QQQ)11.6 percent0.20 percent

Which ETF gives the highest return? ›

6 Best Performing ETFs last 10 years in India
  • Nippon India ETF Nifty 50 BeES. 102.38% 707.9%
  • Nippon India ETF Gold BeES. 99.57% 467.4%
  • Invesco India Gold ETF. 107.00% 288.0%
  • UTI S&P BSE Sensex ETF. 95.56% 200.8%
  • BHARAT 22 ETF. 161.65% 172.2%
  • Nippon India ETF PSU Bank BeES.
Mar 27, 2024

Which ETF has the highest yield? ›

Top 100 Highest Dividend Yield ETFs
SymbolNameDividend Yield
CONYYieldMax COIN Option Income Strategy ETF74.60%
KLIPKraneShares China Internet and Covered Call Strategy ETF57.91%
TSLYYieldMax TSLA Option Income Strategy ETF57.04%
IWMYDefiance R2000 Enhanced Options Income ETF55.54%
93 more rows

What is the fastest growing ETF? ›

Compare the best growth ETFs
FUND(TICKER)EXPENSE RATIO10-YEAR RETURN AS OF JUNE 3
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%
3 more rows

What ETF doubles the S&P 500? ›

The Direxion Daily S&P 500® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500® Index.

Is VOO better than SPY? ›

Vanguard S&P offers a lower expense ratio (0.035%) than SPY (0.095%), which means lower costs for investors and potentially higher net returns over the long term. VOO might be the more economical choice for cost-conscious investors, especially those investing large sums or planning for long-term goals like retirement.

Does QQQ outperform sp500? ›

QQQ Performance. Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 eight out of the last 10 years as of March 31, 2024.

What is the number one traded ETF? ›

Most Popular ETFs: Top 100 ETFs By Trading Volume
SymbolNameAvg Daily Share Volume (3mo)
SPYSPDR S&P 500 ETF Trust62,377,039
SOXLDirexion Daily Semiconductor Bull 3x Shares60,721,309
TQQQProShares UltraPro QQQ59,845,816
XLFFinancial Select Sector SPDR Fund42,069,750
96 more rows

What ETF makes the most money? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
XLGInvesco S&P 500® Top 50 ETF18.59%
SPMOInvesco S&P 500® Momentum ETF18.31%
AIQGlobal X Artificial Intelligence & Technology ETF17.88%
XMHQInvesco S&P MidCap Quality ETF17.87%
93 more rows

What is the safest ETF? ›

Vanguard S&P 500 ETF

Exchange-traded funds (ETFs) are one of the safer types of investments out there, as they require less effort than investing in individual stocks while also increasing diversification.

What ETF outperforms the S&P 500? ›

While all ETFs are different, there are some that have a history of beating the market and could help supercharge your earnings.
  • Vanguard Growth ETF. ...
  • Schwab U.S. Large-Cap Growth ETF. ...
  • Invesco QQQ Trust.
3 days ago

What is the best ETF to buy in 2024? ›

Best ETFs by 1-year return as of June 2024
TickerFund namePerformance (Year)
SOXXiShares Semiconductor ETF49.01%
IYWiShares U.S. Technology ETF40.62%
MTUMiShares MSCI USA Momentum Factor ETF38.38%
IWYiShares Russell Top 200 Growth ETF37.17%
2 more rows
5 days ago

Which ETF is best to invest in? ›

Performance of ETFs
SchemesLatest PriceReturns in % (as on Jun 17, 2024)
Nippon ETF Nifty 100257.038.88
SBI - ETF BSE 100270.648.79
HDFC Nifty 50 ETF258.366.44
Motilal MOSt Oswal M50 ETF239.866.43
34 more rows

Is it worth investing in ETFs now? ›

Key Takeaways. ETFs are considered to be low-risk investments because they are low-cost and hold a basket of stocks or other securities, increasing diversification. For most individual investors, ETFs represent an ideal type of asset with which to build a diversified portfolio.

What ETF has the highest average return? ›

1. VanEck Semiconductor ETF
  • 10-year return: 28.18%
  • Assets under management: $22.2B.
  • Expense ratio: 0.35%
  • As of date: June 10, 2024.

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