Top 5 ETF’s To Grow Your Money

by James Barnes on October 12, 2019

What is the ETF?

ETF is known as an exchange-traded fund. It is like a basket where you buy or sell securities through a firm or stock exchange. ETF is a popular choice for investors. It is an excellent choice for both long and short term investment. It is different from mutual funds. It also allows you to buy and sell funds on stock markets. It owns stocks, bonds, gold, and other assets. Shareholders get the profits from their shares.

The structure of ETF varies from country to country. The structure can consist of trust or a company. However, do not invest in ETF if you are not aware of the risk. Get a bit of advice from financial experts. They will help you resolve your concerns. This consultation will also give you information about the ETF trade. The process of ETF begins instantly as soon as you invest. First, decide your dealer. ETF can track stock exchanges like Dow Jones and others. Following is a list of the best ETF to consider when spending your money.

1. SPDF S&P 500 ETF (SPY)

SPDF S&P is a long term investment. It is also one of the most traded ETF is the stock market. It started in 1993. This index actively monitors the S&P 500. It allows investors to buy or sell the funds in a single trade. Many investors prefer SPY as compared to their competitors. It easily converts your assets into cash.

2. iShares Russell 2000 ETF (IWM)

Russell 2000 ETF also tracks US stock markets. It focuses on the small market instead of the larger ones. It is best for small-cap stocks. IWM charges 0.19% of the expense amount. It is lower than mutual funds but higher for the ETF industry.

But in comparison to the S&P 500 funds, it has 3-4 times more stocks. Investors can buy and sell these stocks keeping in view the index. Some investors think that smaller stocks are a good option. But according to some, small stocks are a more risky choice for investment. But if you want to invest in big companies, IWM is best.

3. SPDR Gold Trust (GLD)

SPDR Gold trust is best for investing in gold. It charges 0.40% expense amount. Gold is a good option for hard economic times. It is an excellent choice for investors. During economic uncertainty, people rush to gold. It is a safe investment and less risky.

4. INVESCO QQQ

Best for NASDAQ Large-Cap Stocks. QQQ tracks the NASDAQ 100 index stock exchange. This stock exchange is home to 100 most significant stocks. Mainly, the stock companies are technology-based in NASDAQ 100. So, this index profoundly affected by the changes technology industry. This ETF charges 0.20% Expense amount.

5. Vanguard FTSE Developed Markets (VEA)

FTSE allows you to invest in large companies outside the US as well. This investment can invest stocks in companies in Canada, the UK, and other developed countries. It has a low expense fee. Investing in developed markets is also risky. But, it can also offer you excellent returns and income as well.