Which ETF to Invest in

When choosing an investment strategy, it is necessary to decide what kind of returns are more valuable in particular circumstances. If you want your investments to be kept with you for a long time, you need to choose long-term investments. If you are looking for money as a stable source of income in the near time, it is better to choose short-term investments. The best choice of a fund that will guarantee long-term returns, will be ETF investments. 

ETF investment or exchange-traded fund is a fund that can be traded on an exchange like a stock. It is possible to buy and sell ETF investments during the whole day. Their advantages made ETFs one of the most popular investments nowadays:

  • lower fees than for other types of funds
  • lower calculated risks 
  • instant sales
  • transparency of ETF trading 
  • possibility of horizontal diversification for investors
  • investors will not lose money if the ETF closes
  • taxes are applied only when upon investments are sold

Those who are playing financial markets for a long time can undertake more risky strategies. However, those who are just learning the skills of investors should prefer more stable strategies that will minimize their risks. For them, an ETF is the best solution.

Which ETF to choose

When choosing a fund, you need to pay attention to several aspects:

your investment goals (portfolio of stocks or bonds)

  • investment horizon
  • portfolio structure and its distribution
  • historical ETF returns
  • acceptable risks
  • costs and commissions for transactions with ETF
  • value of assets under ETF management, etc.

Considering all these components of the selection parameters, it is possible to recommend the most popular ETFs, that gained their reputation on the financial market:

  1. SPY – SPDR S&P 500 ETF Trust is one of the world’s largest exchange-traded funds. It became the first successful American fund. That is why if you choose investing in the US stock market, this option will be optimal.
  2. VOO – Vanguard S&P 500 ETF is a popular index fund with a reliability rating A. The fund consists of large-cap stocks.
  3. QQQ – Invesco QQQ Trust is one of the oldest successful ETFs in the world. Buying stocks of this fund is the easiest way to invest in the largest American companies.
  4. GLD – SPDR Gold Shares is a fund investing in gold. Its portfolio is fully backed by real bullion. This ETF is the largest private repository of gold in the world.
  5. IEMG – iShares MSCI Emerging Markets ETF is the largest fund in the segment of EM-shares.

Raise your funds with the best ETFs stable and secure!

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