|Bid||0.00 x 3000|
|Ask||0.00 x 1000|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||N/A|
|Expense Ratio (net)||0.02%|
Once your account is up and running, many exchange traded funds offer simple but effective investing strategies for a remarkably low cost. Many investors know about low-cost index funds such as SPDR S&P 500 ETF (SPY) or any number of inexpensive ETFs from fund giant Vanguard.
[Editor's Note: This Article was originally published on Jan. 24, 2019. It has since been updated]Investors are seemingly always on a quest for a portfolio they deem to be "well-balanced." Fortunately for investors seeking balance, exchange-traded funds (ETFs) make that objective significantly easier and, in many cases, less expensive than other instruments.Many of the best ETFs are inexpensive, highly liquid and span asset classes and regions, helping investors ameliorate the dreaded home country bias. Of course, what makes a well-balanced portfolio for one investor may not be properly balanced to another, but conventional wisdom does dictate that a mix of bonds and equities is a sensible starting point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom there, more aggressive investors can add in alternative asset classes, including commodities, something many of the best ETFs do in diversified fashion. * 10 Stocks to Buy That Could Be Takeover Targets In the search for balanced portfolios, here are some of the best ETFs to consider. ETFs to Buy: JPMorgan BetaBuilders U.S. Equity ETF (BBUS)Source: Shutterstock Expense Ratio: 0.02% per year, or $2 on a $10,000 investment.You may have recently heard that a pair of ETFs launched with expense ratios of 0%. The JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) is not one of those funds, but of the ETFs with fees, the newly minted BBUS is the cheapest, charging a mere 0.02% per year.While BBUS is new (it debuted in late March), it is one of the best ETFs to act as a core building block for properly balanced portfolios. This fund holds over 620 stocks, providing investors with exposure to over 85% of the U.S. equity market. BBUS has over $30 million in assets under management, which is a decent start, but for investors that like big ETFs, expect BBUS's stature to soon increase as JPMorgan launches a robo-advisor platform. BBUS will be one of the cornerstones of that offering.BBUS allocates 21.5% of its weight to technology stocks while the healthcare and financial services sectors combine for 27.3% of the fund's roster. Investors that embrace this fund should expect long-term returns comparable to those generated by the S&P 500 or Russell 1000 indexes. iShares Core Total USD Bond Market ETF (IUSB)Expense Ratio: 0.06%As mentioned earlier, a well-diversified portfolio does not begin and end with stocks. It should include fixed-income exposure, too. The iShares Core Total USD Bond Market ETF (NASDAQ:IUSB) is one of the best ETFs for novice bond investors or those simply looking for broad-based, cost-efficient exposure to domestic bonds.The $3.57 billion IUSB, which tracks the Bloomberg Barclays U.S. Universal Index, is one of the best ETFs for bond investors seeking diversity and cost efficiencies. Home to nearly 7,900 bonds, IUSB is also one of the least expensive fixed income funds on the market today. * The 10 Best Stocks for 2019 -- So Far IUSB has a 30-day SEC yield of 2.9%, a 12-month yield of 3% and an effective duration of 5.22 years. Due to heavy exposure to U.S. Treasuries and other government agency debt, credit risk is minimal with this best ETF. Bonds with AAA ratings account for 61.54% of the portfolio. WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Expense Ratio: 0.28%Sure, there are cheaper dividend funds on the market, but the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one of the best ETFs in this category. Dividends, particularly when reinvested, are vital to investors' long-term outcomes, making DGRW ideal for a broad swath of market participants, be they rookies, sophisticated players or retirement planners.There are dozens of dividend ETFs for investors to consider, but DGRW's fundamentally weighted methodology stands out from the pack. A case can even be made that is a dividend ETF Warren Buffett himself would enjoy."Return on equity (ROE) is a metric Buffett has written on extensively: it's a 'quality' indicator for stocks, reflecting how much profit a business earns relative to its net equity capital," according to WisdomTree research.DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," notes the issuer.DGRW also pays a monthly dividend and is worth the cost of admission relative to its peer group. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense Ratio: 0.38%Like its stablemate DGRW, the WisdomTree U.S. SmallCap Dividend Fund (NYSEARCA:DES) is one of the stars in its respective category. This is one of the best ETFs for income-hungry investors as well as those seeking exposure to smaller stocks because DES is historically less volatile than rival non-dividend small-cap funds."This portfolio targets dividend payers without incurring too much risk," said Morningstar in a recent note. "Although the fund doesn't screen its holdings for profitability or dividend sustainability, a few dividend cuts across its portfolio shouldn't significantly affect its performance because it is broadly diversified and skews toward larger, more-stable names in the small-value Morningstar Category."DES allocates nearly a third of its combined weight to industrial and consumer discretionary stocks while the real estate and financial services sectors combine for 26.3%. Plus, this has long been one of the best ETFs in the small-cap value space. * 6 Big Dividend Stocks to Buy as Yields Plunge "From its launch in June 2006 through April 2019, the strategy has topped the small-value category average and the Russell 2000 Value Index by 1.2 and 1.0 percentage points annually, respectively, with similar risk," according to Morningstar. "The fund's favorable stock exposure within the energy and consumer discretionary sectors contributed to most to its outperformance." Vanguard Total Corporate Bond ETF (VTC)Expense Ratio: 0.07%While it is important to remember that bonds are an important part of well-balanced portfolios, investors should also remember that they should be heavily allocated to U.S. government debt. That strategy limits credit opportunities and some of the potential added upside associated with corporate bonds.Put simply, the Vanguard Total Corporate Bond ETF (NASDAQ:VTC) is one of the best ETFs for investors seeking a massive bench of investment-grade corporate bonds across varying durations and maturities. VTC is classified as an intermediate-term bond fund, but it features exposure to short-, medium- and long-dated corporate debt with almost 6,000 holdings.VTC accomplishes those objectives in cost-effective fashion by holding Vanguard's three other corporate bond ETFs, which span the aforementioned maturity categories. Over 87% of VTC's holdings are rated A or Baa and it has an average duration of 6.9 years. Vanguard Total International Bond ETF (BNDX)Expense Ratio: 0.09%Keeping with the theme of using cheap bond ETFs to enhance portfolio diversity, there is the Vanguard Total International Bond ETF (NASDAQ:BNDX). BNDX is one of the best ETFs in the fixed income arena this year in terms of both performance and asset-gathering acumen.BNDX tracks the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index and holds nearly 5,800 bonds with an average duration of 7.8 years. There are other benefits to owning international bonds beyond making a portfolio more diverse. * 7 Bank Stocks to Leave in the Vault A fund such as BNDX can help investors access potentially higher yields than are found on domestic government bonds, gain exposure to monetary policies that are not delivered by the Federal Reserve and the potential for higher returns. Over the past three years, BNDX has outperformed the Bloomberg Barclays Aggregate Bond Index by nearly 200 basis points. iShares Core MSCI EAFE ETF (IEFA)Expense Ratio: 0.08%The iShares Core MSCI EAFE ETF (CBOE:IEFA) is one of the best ETFs for investors looking to bring cost-effective international equity exposure to their portfolios. IEFA, one of the largest ex-U.S. equity funds in the world, reflects the valuation discounts associated with many ex-U.S. developed markets, including Europe."Europe offers attractive asset valuations compared to history, especially in risk assets," according to BlackRock. "Regional assets have cheapened further compared to a year ago as concerns about growth and politics increased. The exception to this are core government bonds, which we believe to be expensive compared to global peers."IEFA's largest country weight is Japan at 24.75%, but four of its top five geographic weights are European nations, positioning the fund to take advantage of a rebound in stocks across the pond."As downward revisions to growth start petering out and incoming activity data begin to show signs of life, European risk assets might get a boost this year as value equities benefit," according to BlackRock.As of this writing, Todd Shriber owned shares of DES and DGRW. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post 7 Best ETFs for a Well-Balanced Portfolio appeared first on InvestorPlace.
In the highly competitive ETF world, managers are going to ever greater lengths to make a marketing splash to attract investors' money.
Exchange-traded funds (ETFs) and index funds have long been grabbing market share from actively managed mutual funds for several reasons. First, various studies continue confirming that across various market capitalization segments and fixed income arenas, active managers often do not beat their benchmarks.Second, and arguably more prevalent than the first point, is low costs. While there are plenty of ETFs and index funds out there are that are not particularly cheap, many of these products are really cheap and are getting cheaper. For long-term investors, fees really do matter and there is no denying that."Imagine you have $100,000 invested. If the account earned 6% a year for the next 25 years and had no costs or fees, you'd end up with about $430,000," according to Vanguard, one of the dominant issuers of index funds. "If, on the other hand, you paid 2% a year in costs, after 25 years you'd only have about $260,000."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Risk Stocks With Big Potential Rewards For cost-conscious, buy-and-hold investors, here are some of the best index funds to consider. Best Index Funds: Fidelity ZERO Total Market Index Fund (FZROX)Expense Ratio: 0%Last year, Fidelity shook the index fund space by introducing the first no-cost index funds. The Fidelity ZERO Total Market Index Fund (MUTF:FZROX) is one of the first two zero-fee index funds introduced by Fidelity.There may have been some naysayers who thought no-fee funds were a marketing gimmick. They should think again because FZROX is more proof that investors love cheap -- or in this case, free -- index funds. FZROX debuted early last August and today has $2.74 billion in assets under management. Fidelity clients can also transact in this index fund free of commissions.FZROX is a standard, domestic total market equity fund that is considered a large-cap blend index fund. Investors should expect returns that are comparable to those of the S&P 500 or Russell 1000 Index. Fidelity ZERO International Index Fund (FZILX)Expense Ratio: 0%The Fidelity ZERO International Index Fund (MUTF:FZILX) is the other no-fee index fund introduced by Fidelity last August. As is the case with FZROZ, FZILX is gaining a following by virtue of its zero expense ratio. The internationally focused FZILX now has slightly more than $888 million in assets under management.This Fidelity index fund holds both developed and emerging markets equities, but that split is 70.45% to 22.23% in favor of developed markets fare. Only stocks with market values of greater than $10 billion are included in this index fund. * 10 Medical Marijuana Stocks to Cure Your Portfolio At the geographic level, Europe is FZILX's largest regional weight at over 38% while Japan is the index fund's largest individual country weight at almost 17%. Vanguard Value Index Fund -- Admiral Shares (VVIAX)Expense Ratio: 0.05%The Vanguard Value Index Fund -- Admiral Shares (MUTF:VVIAX) requires a minimum investment of $3,000, but when it comes to its fee, this index fund is one of the cheapest value funds."This low-cost index fund follows a buy-and-hold approach, and invests in substantially all of the stocks contained within its broad benchmark," according to Vanguard.The financial services and healthcare sectors combine for over 39% of VVIAX's weight. Large exposure to financials is a common trait among traditional value funds, so investors should not be troubled by VVIAX's weight to that sector. The fund's top 10 holdings, eight of which are members of the Dow Jones Industrial Average, combine for 25.2% of its weight. JPMorgan BetaBuilders U.S. Equity ETF (BBUS)Source: Shutterstock Expense Ratio: 0.02%Until the zero-fee ETFs come to market or barring other fee reductions, the newly minted JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) is the least expensive ETF in the U.S. This index fund, which debuted in March, offers investors efficient exposure to 85% of the U.S. equity market and holds more than 600 stocks.Like some of the other index funds mentioned here, BBUS is a total market U.S. equity solution, so investors should expect returns comparable to those of broader domestic equity benchmarks because the fund's sector exposures are similar to those found in widely indexes. * 7 Biometric Stocks to Watch as AI Rises BBUS is not yet a month old and already has $28.40 million in assets under management, proving that investors like their ETFs and index funds with low fees. Vanguard Mid-Cap Index Fund -- Admiral Shares (VIMAX)Expense Ratio: 0.05%Index funds with exposure to smaller stocks often feature higher fees than their large-cap counterparts, but there are plenty of cheap mid- and small-cap funds. That includes mid-caps and the Vanguard Mid-Cap Index Fund -- Admiral Shares (MUTF:VIMAX), which is cheaper than 95% of competing funds, according to Vanguard data.One of the primary reasons buy-and-hold investors should consider a mid-cap index fund like VIMAX is that mid caps historically outperform large caps by wide margins. Mid caps can also top small caps and do so with less volatility.VIMAX holds 363 stocks and if there is a knock on this Vanguard index funds, it is mid-cap purity. The median market value of $14.8 billion on the fund's holdings indicates VIMAX drifts into large-cap territory. Fidelity ZERO Extended Market Index Fund (FZIPX)Expense Ratio: 0%As noted earlier, Fidelity started with two no-fee index funds and quickly grew that group to four. The Fidelity ZERO Extended Market Index Fund (MUTF:FZIPX) is one of the second pair in that quartet.This index fund is one to consider for investors who have large positions in total market or large-cap funds, including some of the index funds mentioned here because FZIPX fills in the some of the mid- and small-cap gaps left by traditional large-cap products. To that point, FZIPX is considered a mid-cap blend fund. * The Elite 8 Stocks to Buy for Massive Outperformance FZIPX is diverse, as its top 10 holdings combine for just 3.15% of the fund's weight and the index fund has double-digit allocations to five sectors -- financials, industrials, technology, consumer discretionary and healthcare. This index fund debuted last September and has nearly $300 million in assets under management. Fidelity ZERO Large Cap Index Fund (FNILX)Expense Ratio: 0%The Fidelity ZERO Large Cap Index Fund (MUTF:FNILX) is the final member of Fidelity's no-fee index fund quartet to be highlighted here. This is a traditional large-cap index fund featuring exposure to big domestic companies with market values of more than $10 billion. FNILX is considered a large-cap blend index fund because it includes both growth and value stocks.Being a domestic large-cap index fund, FNILX's sector weights are comparable to those of the S&P 500. As such, investors should expect returns and volatility that are in line with those of the benchmark U.S. equity gauge.Like the other Fidelity index funds mentioned here, FNILX is available to the firm's clients on a commission-free basis. And like the other Fidelity index funds highlighted here, FNILX has been an immediate success. The fund debuted last September and already has $526.38 million in assets under management. Schwab Small Cap Index Fund (SWSSX)Expense Ratio: 0.04%The Schwab Small Cap Index Fund (MUTF:SWSSX) is one of the more venerable names among low-cost small-cap index funds. SWSSX holds over 2,000 stocks."Small-blend funds favor firms at the smaller end of the market-capitalization range, and are flexible in the types of small caps they buy. Some aim to own an array of value and growth stocks while others employ a discipline that leads to holdings with valuations and growth rates close to the small-cap averages," according to Schwab. * 10 Tech Stocks That Transformed Their Business The $4.1 billion SWSSX allocates over a third of its weight to financial services and healthcare stocks. Throw in a 15.30% weight to tech stocks and SWSSX has the feel of a growth index fund, but it has portfolio turnover of 17%, so it can drift back to being a value or blend fund. SWSSX earns four-star Morningstar ratings. Schwab International Index Fund (SWISX)Expense Ratio: 0.06%The Schwab International Index Fund (MUTF:SWISX) is another low-cost index fund for investors seeking to add some diversification to U.S.-heavy portfolios."Foreign large-blend funds invest in a variety of big international stocks. Most of these funds divide their assets among a dozen or more developed markets, including Japan, Britain, France and Germany. They tend to invest the rest in emerging markets such as Hong Kong, Brazil, Mexico and Thailand," according to Schwab.While some foreign blend funds feature emerging markets exposure, all of SWISX's top 10 geographic weights are developed markets and those 10 countries combine for 88.6% of the index fund's geographic exposure. European stocks represent 61.40% of SWISX's weight, twice the weight the index fund assigns to Asian economies. Vanguard Short-Term Corporate Bond Index Fund -- Admiral Shares (VSCSX)Expense Ratio: 0.07%Investors looking for income without the burden of significant interest rate risk can turn short-term corporate bond index funds, of which the Vanguard Short-Term Corporate Bond Index Fund -- Admiral Shares (MUTF:VSCSX) is one of the best options for cost-conscious, buy-and-hold investors.VCSH's 2,223 holdings have maturities ranging from one to five years, giving this index fund an average maturity of 2.9 years and an effective duration of 2.5 years. Over 85% of VSCSX's holdings are rated A or Baa. * 7 High-Risk Stocks With Big Potential Rewards VCSH yields 2.66%, which is better than the yield on Treasuries of comparable maturity and the dividend yield on the S&P 500, making it one of the best funds to buy.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Data Center Buys That Deliver Sizable Income * 7 High-Risk Stocks With Big Potential Rewards * 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization Compare Brokers The post Top 10 Index Funds to Build a Retirement On appeared first on InvestorPlace.
The ETF marketplace has been trending towards lower and lower fees for some time now, but it’s never gotten as low as it has this past week. Most watchers figured that a 0% ETF was the next logical step in the fee war, but Salt Financial has passed that marker and gone straight into negative territory. It’s the first ETF that will actually pay you to invest in it but it comes with a catch! For a list of all new ETF launches, take a look at our ETF Launch Center. Here are the latest new fund launches: