ETFs or Exchange Traded Funds are a basket of securities available to trade at the same hours as the stock market. The best performing ETFs present a good investment for traders to get in some great profits as they capitalize on opportunities. As the financial industry is vast, it may be hard to track down the assets that participants can capitalize on. For our list, we have included the best performing ETFs to save you from the searching hassles.
What is the best performing ETF?
There are many high performing ETFs which we will look at below. Overall an ETF will represent the overall outlook of how specific securities are performing during a particular trading day. Many traders look towards this asset to increase their diversification, by going long or short . Nowadays, brokers offer ETFs with a minimal spread for both institutional and retail participants.
ETFs do carry a risk if traded with improper risk management. Mini ETFs are available to minimize the exposure to drawdown, which is beneficial for new traders. They also increase diversification and are an excellent alternative to mutual funds.
Invest in best performing ETFs in Three steps
Open a free account
You can easily open a free account by clicking on the register button. After confirming your email, you can enter quickly.
Making a deposit
Deposit your money, and it will show up in your account in minutes or days, depending on the method.
Once your funds show up in your account, it’s time to start managing your portfolio. Use fundamentals or technical as per your wish and keep your psychology and risk management in check.
Where can I trade best performing ETFs?
As stated before, it is relatively easy to trade ETFs these days. The asset is available to professionals and retailers alike through brokers. It is necessary to choose a company that will cater to all your needs, and for this purpose, we have selected top brokerages in the industry at the table below.
We ensured that the brokers above are all regulated by top tier authorities. The fees and costs are kept at the lowest possible end, and trades are executed with minimal latency. The websites also have an in-depth education section alongside market research and excellent customer support.
Best Performing ETFs to buy now
The market is showing early signs of recovery from the pandemic back in 2020. The volatility stretch has been confusing for many traders, yet another change may happen with Joe Biden being the new US president. If you are looking for the best performing ETFs you should buy now, here are the best for 2021.
- Vanguard S&P 500 VOO
- Invesco QQQ
- Vanguard Information Technology VGT
- Schwab Small-Cap SCHA
- Van Eck Vector Goldminers GDX
- iShares Core High Dividend HDV
- ProShares VIX Short-Term Futures
- Vanguard Small-Cap VB
- SPDR Gold Shares GLD
- ARK Innovation ARKK
Vanguard S&P 500 VOO
Founded in 2010, Vanguard S&P 500 lists the top five US companies that are publicly traded. Financial websites list the total market cap of the ETF in the area of $32 trillion. The instrument had a spectacular performance in the year 2020 despite the pandemic, and it is perfect for beginners to invest in by diversifying their overall risk. Over the past several years S&P 500 was on the positive end with a rising curve in value.
The exchange-traded fund is based on the Nasdaq 100 index, which has shown a 45% increase in the last year. It includes one of the two big Giants of the E-Commerce industry, i.e., Amazon and Microsoft Corporation. The market cap for the ETF stands at one $159.05 billion. The exchange traded fund’s value saw a hiccup at the start of the pandemic in 2020; however, it re-bounced quickly to new highs.
Vanguard Information Technology VGT
The ETF is best for those looking to invest in technology. It has a market cap of $37.30 billion and a 45% ROI in 2020. You may see a different amount of volatility in this exchange-traded fund as big tech companies rise and fall in their value. Always take a look at fundamentals before employing any technicals with the instrument.
Schwab Small-Cap SCHA
Schwab holds 1800 stocks in the list of securities that are related to the US domestic economy. The annual expense ratio for the ETF is super low as data shows that you only need $4 annually for any $10,000 in play. The small-cap exchange-traded fund has seen its shares of ups and downs during the past five years; nonetheless, after the COVID-19 situation, it has also recovered to new highs.
Van Eck Vector Goldminers GDX
With a 2020 performance bump of 23.7%, Van Eck is one of the top gold ETF to make our list. Market participants can be seen rushing towards Gold assets during periods of uncertainty. The market cap of the exchange-traded fund is $14.55 billion. There was an annual 20% increase on average in the price over the past five years. Therefore it can be an excellent addition to your portfolio.
iShares Core High Dividend HDV
This exchange credit fund has no companies with below-average dividend payments. The asset’s annual return is 4%, which is much higher than other index funds. You can spot various key levels and support and distance in the charts for day trading using the technicals. For the past few years, the price has been bouncing between the 80 and $90.00 mark.
ProShares VIX Short-Term Futures
VIX is quite an illiquid ETF adding 10.9% to its value in 2020. Net worth stands at $483.8 million. In the financial world, this exchange-traded fund is unique as it grows with the increase in market volatility. Generally, you will see a significant moment as the S&P declines. The price has seen a decrease over the many past years. There was a jump in the inception of the pandemic, but it continued toward the downtrend.
Vanguard Small-Cap VB
Founded in 2004, VB has a low expense ratio of just 0.05%. The net assets stand at 114.57 billion dollars. Till 2019 the fund gave an average of 8% annually, and growth doesn’t just stop there, as the ETF showed a 19.2% increase in performance in the year 2020. Ignoring the occasional small dips, the exchange-traded fund has been on the rise for five years.
SPDR Gold Shares GLD
SDR gold shares are a haven for investors that prefer gold ETF. The net assets for GLD stand at $71.16 billion. It has gained over 25% over the past 12 months. The volatility presented by the exchange-traded fund should be monitored with extra care as it can possess an additional risk for investors. Since 2012 the price was in a downtrend, but at the beginning of November 2015, it reversed its direction to record new highs.
ARK Innovation ARKK
Founded by Woof, ARK holds 35 to 55 securities, including the top ones, i.e., Tesla, Roku, and NVTA. The net value for the exchange-traded fund extends to $17.67 billion. It is best for those who prefer a long term growth of their capital. The ETF has been on a strong uptrend for the past couple of years.
Expert tip on investing in best performing ETFs
While selecting an ETF to trade, always take a peek at its expense ratio. Consider the ratio as a fee for managing your funds. Always consider the ones with the lowest possible percentage as even a small fee can mount up to produce more significant expenses.
Why trade the best performing ETFs?
ETFs are one of the best investment choices for beginners due to the low-risk presence. Due to the diverse nature, these assets will not show a single big movement that stocks or forex usually show. Multiple strategies can be executed on the exchange traded fund, allowing you to access numerous assets under single security.
A person may also not require an extra bit of knowledge and learning while beginning as they can choose an ETF that matches the instruments that they already trade. You are also able to move your equity from one class of assets to another quickly. Furthermore, in contrast to buying, short selling is also at hand with ETFs.
Frequently Asked Questions
Vanguard S&P 500 is the best performing ETF.
Yes, ETFs are a good investment right now.
Everyone from beginners to professionals to banks and institutions invests in best performing ETFs.
A share depicts a single security price, while ETFs show all securities’ value in a single class.
Yes, the best performing ETFs are a good investment for beginners.
The size of ETFs surpasses $5 trillion in value.