|Bid||34.70 x 3100|
|Ask||0.00 x 800|
|Day's Range||34.93 - 35.19|
|52 Week Range||29.88 - 37.56|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.98|
|Expense Ratio (net)||0.38%|
While use of ETFs among institutional and other professional investors continues growing at a rapid rate, retail investors and advisors representing those investors remain core constituencies among ETF users.As has been widely noted, retail investors are often drawn to ETFs due to the asset class's low fees. The best ETFs are not always the cheapest in terms of sheer performance, but for investors with long time horizons looking to build their own portfolios, many of the best ETFs to consider are those funds that can be considered cheap. Data confirm that low fees make a difference for long-term investors."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. "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 Dividend Stocks That Could Double Over the Next Five Years Of course, there are a variety of tactical and thematic funds for investors to consider, many with compelling alpha-seeking capabilities, but for investors looking for set-it-and-forget core type investments, the following are some of the best ETFs to evaluate. JPMorgan BetaBuilders U.S. Equity ETF (BBUS)Source: Shutterstock Expense ratio: 0.02% per year, or $2 on a $10,000 investment.Prior to the recent debuts of a pair of no-fee ETFs, the JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) briefly held the title of cheapest ETF in the U.S. Naysayers will note that entering BBUS in the best ETFs conversation is tricky at this point because the fund is barely more than a month old, but age with ETFs is just a number.For investors looking to check the boxes of low fees and broad domestic equity market exposure, BBUS is one of the best ETFs, regardless of its rookie status. Home to 622 stocks, BBUS provides exposure to 85% of the U.S. equity market. In just six weeks on the market, BBUS has amassed $31.66 million in assets, marking one of the more impressive starts among 2019's crop of new ETFs.With a larger roster than the S&P 500, BBUS could prove to be one of the best ETFs to replace S&P 500 tracking funds and, at least for the time being, the new JPMorgan ETF is cheap than any of the S&P 500 index funds available to retail investors. Still, long-term investors should expect BBUS to perform mostly inline with other broad market funds over time. The advantage will come from this fund's lower fee. WisdomTree U.S. MidCap Dividend Fund (DON)Source: Shutterstock Expense ratio: 0.38%Yes, there are definitely mid-cap funds with lower fees than the 0.38% charged by the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON), but few mid-cap funds can match DON's status as one of the best ETFs for this market segment.Many investors that are building set-it-and-forget-it portfolio focus too heavily on domestic large caps, usually at the expense of mid-cap stocks. Historical data confirm that is a bad move because mid caps display better long-term returns than large caps and, in many cases, mid caps also beat small-cap stocks and do so with less volatility.DON is one of the best ETFs or mutual funds in the mid-cap space because since its inception nearly 13 years ago, the WisdomTree fund has beaten more than 90% of competing strategies, often by healthy margins. * 5 Hot Dividend Stocks to Buy as the Weather Heats Up DON is also one of the best ETFs for long-term investors because the fund pays a monthly dividend and dividend-paying stocks are usually less volatile than their non-dividend counterparts. iShares Edge MSCI Min Vol USA ETF (USMV)Source: Shutterstock Expense ratio: 0.15%Low volatility funds are among the best ETFs for investors to consider when building portfolios for the long-term and the iShares Edge MSCI Min Vol USA ETF (CBOE:USMV) is one of the leaders of that pack. Before embracing low volatility ETFs, investors should note that the primary objective of these funds is to provide less downside capture when stocks decline, not capture all of the market's upside when stocks rally."Minimum Volatility strategies aim to create a holistic portfolio with lower risk than the market," said BlackRock in a recent note. "The factor has historically delivered lower downside capture, but lower upside potential as well, making it more appropriate for investors seeking to reduce risk while still maintaining potential for returns similar to the broader market."From January 2015 through February 2019, minimum volatility's upside capture was just over 82%, but its downside capture for less than 59%, according to BlackRock data.The $25 billion USMV holds 213 stocks, a combined 30.76% of which hail from the technology and healthcare sectors. Schwab US Small-Cap ETF (SCHA)Source: Shutterstock Expense ratio: 0.04%While small-cap stocks are more volatile than large-cap competitors, small caps are integral ingredients in long-term portfolios. Consider this: since the start of the current bull market in March 2009, the S&P SmallCap 600 Index is up nearly 471% compared to 400% for the large-cap S&P 500.For cost-conscious investors, the Schwab US Small-Cap ETF (NYSEARCA:SCHA) is one of the best ETFs to consider in the small-cap space. The $7.9 billion SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index and holds nearly 1,740 stocks, making it one of the best ETFs among small-cap funds in terms of roster size and diversity. * 5 Mining ETFs to Dig Into SCHA has another perk that makes it one of the best ETFs for frugal investors: Schwab clients can trade the fund commission-free. This small-cap ETF allocates over half its combined weight to the financial services, technology and industrial sectors. Vanguard Total Bond Market ETF (BND)Source: Shutterstock Expense ratio: 0.05%Portfolio construction for the long term needs to include diversification, meaning bond funds are among the best ETFs investors to consider. The Vanguard Total Bond Market ETF (NASDAQ:BND) is one of the best ETFs for investors for size and cost synergies in a bond fund because BND is one of the largest and cheapest bond ETFs in the U.S.BND is an aggregate bond fund, meaning it is one of the best ETFs for investors looking for exposure to a deep bench of fixed income assets. The fund holds 8,463 bonds with an average duration of six years and an average effective maturity of 8.20 years. The bulk of BND's holdings are U.S. government and agency debt, meaning credit risk is not an issue with this bond fund.With a yield of 2.77% and minimal credit risk, BND can be one of the best ETFs for conservative investors looking for reliable income.Todd Shriber does not own any of the aforementioned securities.Compare Brokers The post 5 Best ETFs to Set and Forget appeared first on InvestorPlace.
In good times and bad, dividend stocks act almost like rent checks, coming monthly or quarterly like clockwork. Many investors, whether you're a professional working on Wall Street or a regular Joe on Main Street, swear by them.It's a big reason why assets in U.S. dividend exchange-traded funds (ETFs) have grown exponentially over the past decade. In 2009, U.S. dividend ETF assets were less than $20 billion. By the middle of 2018, they had increased to more than $170 billion.The reason: Dividend ETFs provide investors with a diversified portfolio of dividend-paying stocks that allows you to invest and collect income without having to do nearly the amount of research you'd need before buying a large number of the individual components.If you're in this camp of hopeful set-it-and-forget-it investors, here are seven dividend ETFs to buy and hold for the long haul. Diversified by geography, style, size, sector, etc., this collection of ETFs can be held as a group or individually depending on your preferences, risk tolerance and investment horizon. SEE ALSO: The 19 Best ETFs for a Prosperous 2019
The recent passing of Vanguard founder John Bogle was a great loss for the investment world. Bogle was responsible for introducing index investing to the fund industry, and in the process, he helped millions of Americans reduce their costs and reach their retirement goals sooner.Bogle launched the first index fund in 1976 and lived to see his creations grow to a $4.6 trillion industry as of 2018. Capital continues to pour into indexed products, and Moody's predicts they will grow to represent 50% of the total investment market within five years. This popularity has grown because of index funds' numerous benefits, which include ... * Lower costs. Index funds don't need to employ teams of research analysts or portfolio managers trying to beat the market by constantly trading stocks. As a result, costs are significantly lower than actively managed funds. * Diversification. Index funds often seek to track a broad benchmark and frequently own hundreds if not thousands of different stocks, whereas the typical actively managed fund holds fewer than 100 stocks. The breadth of holdings helps reduce market risk. * Greater transparency. Index funds have a straightforward objective: match the performance of a market benchmark. These products don't suffer "style drift," which occurs when fund managers goose returns by investing in stocks that don't meet the fund's guidelines. * Superior performance. An annual fund-performance report from S&P; Dow Jones Indices showed that in 2018, the majority of actively managed large-cap mutual funds trailed the Standard & Poor's 500-stock index - for the ninth consecutive year.Here are 11 of the best index funds to buy for a variety of financial goals. This list consists mostly of ETFs but includes a few mutual fund options (including mutual fund versions of ETFs). SEE ALSO: The 19 Best ETFs for a Prosperous 2019
Given the sheer expanse of the U.S. exchange-traded funds (ETFs) market, which is home to over 2,300 products, what constitutes the best ETF can vary from investor to investor.For some investors, the best ETFs are the ones with the lowest fees while other investors focus on the products with the juiciest dividend yields. Some investors think the ideal funds are the ones with the best past performance records and other ETF users think the best ETFs come from the issuers with the highest brand recognition.Indeed, a recent survey of professional investors by Brown Brothers Harriman indicates ETF users do prioritize costs and past performance when evaluating funds. Still, there is no one-size-fits-all approach to picking the best ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 U.S. Stocks That Are Coming to Life Again Here are some of the best ETFs for a variety of investors. SPDR Portfolio Total Stock Market ETF (SPTM)Expense Ratio: 0.03% per year, or $3 on a $10,000 investment.The SPDR Portfolio Total Stock Market ETF (NYSEARCA:SPTM) is one of the best ETFs for investors looking to accomplish multiple objectives. Home to over 2,600 stocks, SPTM gives investors a deep bench for accessing the U.S. equity market.Second, with an annual fee of just 0.03%, the equivalent of $3 on a $10,000 investment, SPTM is one of the cheapest ETFs in the U.S. Just a handful of funds have annual fees of 0.03% and SPTM is one of them.Bottom line: SPTM is one of the best ETFs for novice or cost-conscious investors. iShares Edge MSCI Min Vol USA ETF (USMV)Expense Ratio: 0.15%For many investors, the best ETFs are the ones that help reduce portfolio risk and volatility. Enter the iShares Edge MSCI Min Vol USA ETF (CBOE:USMV), the largest minimum volatility ETF in the U.S.The $22 billion USMV "seeks to track the investment results of an index composed of U.S. equities that, in the aggregate, have lower volatility characteristics relative to the broader U.S. equity market," according to iShares. * Buy These 5 Stocks to Play the Megatrend of the Century USMV holds over 200 stocks and nearly 30% of those holdings hail from the technology and financial services sectors. Financial services and consumer staples combine for almost a quarter of USMV's roster. WisdomTree U.S. MidCap Dividend Fund (DON)Expense Ratio: 0.38%There are multiple reasons why the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON) is one of the best ETFs for any investors. First, extensive data and studies confirm that mid-cap stocks frequently outperform their large-cap peers while sporting less volatility than small-caps.Second, specific to DON's status as one of the best ETFs, data confirm this fund's dominance in the mid-cap arena. The $3.51 DON turns 13 years old in June and in its more than 12 years on the market, the WisdomTree products has consistently crushed rival actively managed mid-cap funds as well as passive equivalents."Following another strong year relative to its benchmark, DON is in the top quartile of its Morningstar Mid-Cap Value peer group on all time frames. This includes the latest 5- and 10-year periods in which DON is in the first percentile of all mid-cap value funds," according to WisdomTree. Invesco S&P 500 Equal Weight ETF (RSP)Expense Ratio: 0.2%The Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP) has long been one of the best ETFs for investors looking for an alternative to cap-weighted S&P 500 funds. As its name implies, RSP is an equal-weight fund, meaning the S&P 500's smaller components are just as important to this fund's price action as are the index's large- and mega-cap names. * 10 Best Dividend Stocks to Buy for the Next 10 Months Knowing that over long holding periods, small stocks outperform large caps, RSP is one of the best ETFs for investors seeking long-term broad market exposure. Data confirm as much. From RSP's inception in April 2013 through the end of January 2019, RSP beat the cap-weighted S&P 500 by nearly 200 basis points. First Trust Dow Jones Internet Index Fund (FDN)Expense Ratio: 0.53%The First Trust Dow Jones Internet Index Fund (NYSEARCA:FDN) is not just one of the best Internet ETFs, it is one of the best ETFs in the sector/industry space as well. Over the past decade, FDN has handily outperformed the S&P 500 and the S&P 1500 Information Technology Composite Index. FDN was also one of the best ETFs in the U.S. during the most recent bull market.The fund is beloved by droves of investors for its efficient access to storied stocks, such as Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Netflix (NASDAQ:NFLX)."FDN's primary rival is the PowerShares NASDAQ Internet Portfolio (NASDAQ:PNQI). PNQI tracks the largest and most liquid U.S.-listed companies engaged in internet-related businesses and employs a modified market cap-weighted indexing methodology based on the market cap ranking of the underling index securities," according to ETF Trends. Vanguard Mega Cap Value ETF (MGV)Expense Ratio: 0.07%The Vanguard Mega Cap Value ETF (NYSEARCA:MGV) is one of the best ETFs for investors seeking basic exposure to domestic mega-cap stocks with a value bias. MGV's value tilt is notable because the value factor has historically rewarded long-term investors, indicating that this Vanguard fund is a solid idea for young investors, too.MGV follows the CRSP Mega Cap Value Index. Over the past three years, MGV has been one of the best ETFs targeting large-cap value names -- outperforming the Russell 1000 Value Index by 600 basis points over that period. * 7 Reasons You Want Boeing Stock in Your Portfolio MGV holds 150 stocks and its earnings multiples indicate the fund trades at a discount relative to broader market benchmarks, such as the S&P 500. Financial services and healthcare names combine for 42.6% of MGV's weight. VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)Expense Ratio: 0.35%Some of the best ETFs are fixed-income funds and for the adventurous bond investor, the VanEck Vectors Fallen Angel High Yield Bond ETF (NYSEARCA:ANGL) is a name to remember. ANGL is the dominant name among fallen angel funds.Fallen angels are corporate bonds that are originally issued with investment-grade credit ratings that are later downgraded to junk status. To the untrained eye, it may appear that fallen angels are like any other junk bond, but there is more to the story."Fallen angels, high yield bonds originally issued as investment grade corporate bonds, have had historically higher average credit quality than the broad high yield bond universe," according to VanEck. "Fallen angels have outperformed the broad high yield bond market in 11 of the last 15 calendar years."ANGL has a 30-day SEC yield of 6.3%, a 12-month yield of 5.6% and an effective duration of 5.85 years. Vanguard High Dividend Yield ETF (VYM)Expense Ratio: 0.08%The Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is one of the largest U.S. dividend ETFs and a popular choice for yield-hungry investors. While VYM is positioned as a high-dividend fund, its dividend yield of 31.6% is not scary and implies some room for payout growth."High-yielding stocks usually pay out an above-average share of their earnings in the form of dividends, leaving a smaller buffer to preserve dividend payments should earnings fall," said Morningstar. "Although the fund targets high-yielding companies, its market-cap-weighting approach helps it to effectively diversify the risk of solely focusing on yield. In fact, its portfolio represents nearly 38% of the holdings in the Russell 3000 Index. And while the fund has meaningful exposure to a few of its largest holdings, they are not among its riskiest positions." * 10 Monster Growth Stocks to Buy for 2019 and Beyond VYM holds nearly 400 stocks, most of which are large- and mega-cap names. Five sectors have double-digit weights in the fund. Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR)Expense Ratio: 0.6%One of the best ETFs many investors have yet to hear of, the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (CBOE:SRVR), offers a unique, potentially more rewarding approach to real estate investing.Long-term investors are often attracted to real estate funds because of the sector's below-average volatility and above-average volatility. Those are fine traits and SRVR sacrifices neither, but what makes this one of the best ETFs is its compelling opportunity set, one that is not found with traditional real estate ETFs.SRVR has a dividend yield of 3.67%, which is impressive regardless of asset class. Additionally, the fund has shown the ability to outperform traditional real estate ETFs as well as technology funds. Communication needs of the future, including 5G, server farms for cloud computing and more, are among the compelling fundamental factors in SRVR's favor. Cambria Tail Risk ETF (TAIL)Expense Ratio: 0.59%The Cambria Tail Risk ETF (CBOE:TAIL), an actively managed fund, is designed to mitigate risk when markets turn lower and uses put options to accomplish that objective.TAIL strategy offers the potential advantage of buying more puts when volatility is low and fewer puts when volatility is high," according to Cambria. * 9 U.S. Stocks That Are Coming to Life Again Given TAIL's design, it is likely this fund will produce negative returns when stocks are trending higher. So what makes TAIL one of the best ETFs? Put simply, it does its job. Just look at how TAIL performed when broader markets swooned in the fourth quarter of 2018.As of this writing, Todd Shriber did not own any of the aforementioned securities.> More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post The 10 Best ETFs You Can Buy appeared first on InvestorPlace.
For long-term investors, the combination of mid-cap stocks and the value factor can be a potent one. Add dividends to that equation and that potency grows. Mid-cap stocks are often seen as the overlooked ...
One of the biggest problems investors face is balancing growth potential while reducing risk. Go too safe with your portfolio and you'll miss out on potential returns. Head in the opposite direction and volatility sets in and could significantly hinder your overall results. It's a real balancing act. But perhaps the best way to balance is being in the middle. In this case, we're talking about mid-cap stocks and the exchange-traded funds that track them. The holdings within mid-cap ETFs are typically defined as companies between $2 billion and $10 billion in market capitalization. However, some definitions have larger market caps. The beauty is that mid-cap stocks are still growing like small-cap stocks, but they are large enough to stand on their own two feet. This gives them the best of both worlds. Most importantly, mid-cap ETFs and stocks perform. Over the last ten years, the mid-cap focused S&P 400 has managed to produce a 15.44% annual return. That has managed to beat the large-cap S&P 500 by roughly a full percentage point and it beat the return on small-caps during that time too. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 of the Best Stocks to Invest In for February In the end, mid-cap stocks remain one of the best things you can do for your portfolio. And the following three mid-cap ETFs are a great way to add/overweight the market-cap style in your portfolio. ### ### iShares Core S&P Mid-Cap ETF (IJH) Expense Ratio: 0.07% or $7 annually per $10,000 invested If you're looking for broad, no-fuss exposure to mid-cap stocks, then the iShares Core S&P Mid-Cap ETF (NYSEARCA:IJH) can't be beaten. IJH tracks the previously mentioned S&P 400 and uses a full-replication strategy to produce results. This means it actually holds all 400 different mid-cap stocks in the index. Top holdings include well-known names like Domino's Pizza (NYSE:DPZ) and garden/power tool maker Toro (NYSE:TTC). This alone makes it worthy of consideration in a portfolio. But the real win, and the reason why it has gathered more than $45 billion in assets, is its low-cost fees. As one of the members of iShares' core ETFs, IJH is basically free to own with an expense ratio of just 0.07% or just $7 per $10,000 invested. The popular SPDR S&P Mid-Cap 400 ETF (NYSEARCA:MDY), which tracks the same index, is about 4x more expensive. With lower fees, the IJH has managed to outperform the MDY over their histories. And it'll keep on doing so. When it comes to investing, every little bit helps when compounded over time. And with that, investors should almost always choose IJH as their main index way to play mid-cap stocks. ### ### WisdomTree U.S. MidCap Dividend Fund (DON) Expense Ratio: 0.38% One of the biggest misconceptions is that small- and mid-cap stocks can't pay dividends. The idea is that they are forced to keep all their extra cash flows in order to grow their businesses. This couldn't be further from the truth. In fact, mid-cap stocks are some of the best dividend growers around. The size of the company has little to do with the stability of earnings, profits and financial conservativism. To that end, income seekers may want to consider adding mid-cap dividend payers to their portfolios and the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON) is the best way to do it. DON tracks the proprietary WisdomTree U.S. MidCap Dividend Index. Here, the ETF is fundamentally weighted and designed "to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year." Currently, DON holds more than 400 different mid-cap stocks that pay dividends. Top holdings include retailer Kohl's (NYSE:KSS) and consumer products firm Smucker's (NYSE:SJM). The focus on dividend payers produces a pretty decent yield, which is currently at 2.84%. An added bonus for retirees is that the ETF pays its dividend monthly. * 7 Best ETFs for a Well-Balanced Portfolio The focus on dividends hasn't hurt its performance either. Kicking out the fastest growing mid-cap stocks has allowed DON to produce a 13.48% average annual return over the last ten years. That's not shabby at all. Helping that cause is its low 0.38% expense ratio. ### Source: Shutterstock ### ### Invesco S&P MidCap Low Volatility ETF (XMLV) Expense Ratio: 0.25% Naturally, mid-cap stocks -- and many mid-cap ETFs -- are a tad bit more volatile than their larger sisters. For investors near or in retirement, this added volatility can cause some restless nights. But there is a way to cut that bounciness further and still benefit from all the good things that mid-caps have to offer. The Invesco S&P MidCap Low Volatility ETF (NYSEARCA:XMLV) is a smart-beta ETF that uses various screens to kick out high-volatility stocks in order to capture the upside of the market and simultaneously eliminate the downside risk. The idea is that betting on stocks that have historically shown lower overall volatility will result in a smoother ride for portfolios. The benefits of a low-vol strategy work wonders when moving down the market-cap ladder. XMLV combs the previously mentioned S&P 400 and chooses the 80 stocks that have been the least volatile over the last 12 months. The strategy has worked wonders. Over the last five years -- it's a new fund -- the ETF has managed to return 11.77% annually. This compares to the S&P 400's 6.03% return. And XMLV has produced that return with far fewer market movements. For investors with shorter timelines or the inability to recoup losses, using XMLV could be a great way to play the potential of mid-cap stocks, while reducing loss potential. And they can do it for a cheap 0.25% in expenses and score a 2% yield. As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks to Buy Right Now * 7 Stocks That Have Big Headwinds In 2019 * 5 Terrific Tech Stocks That Will Make You Forget About FANG Compare Brokers The post 3 Mid-Cap ETFs to Buy for Massive Growth Potential appeared first on InvestorPlace.
The idea of a well-balanced or perfect portfolio can seem daunting for many investors, especially those who are learning how to invest for the first time. Even professionals struggle to reach "perfect" asset allocations and, let's be honest, many people have different ideas about what constitutes "good" returns, so aiming for perfection can be akin to aiming at a moving target. The famed modern portfolio theory (MPT) examines how risk-averse investors can optimize returns, but given that investors have varying degrees of risk tolerance, what is a well-balanced portfolio for one, may not be for another investor. Some tried and true versions of well-balanced portfolios are likely to include a mix of bonds and stocks with exposure to the former rising as the investor ages. InvestorPlace - Stock Market News, Stock Advice & Trading Tips "Each investor profile has an associated asset allocation--the percentage of investments including stocks, bonds and cash that a portfolio holds. Asset allocation is a strategy that can help you balance portfolio risks and rewards," according to Bank of America Merrill Lynch. * 10 Hot Stocks to Buy Right Now Exchange-traded funds (ETFs) make for ideal tools in building well-balanced portfolios. Many of the best ETFs feature large rosters of holdings, low costs and are suitable for use by novice and sophisticated investors. Here are some of the best ETFs for building a well-balanced portfolio. ### iShares Core MSCI Total International Stock ETF (IXUS) Expense Ratio: 0.10%, or $10 annually per $10,000 invested Investors in every country have a bias toward their own country's stocks. That also means a lot of investors are missing out on some of the best ETFs while limiting their portfolio's diversification. Total market funds, such as the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) are among the best ETFs for U.S. investors looking to add international exposure to their portfolios. IXUS is a broad, cost-efficient fund that features exposure to developed and emerging markets. The fund holds over 3,400 and tilts heavily toward developed markets. While international equity funds are usually more volatile than U.S. equivalents, IXUS's three-year standard deviation of 11.66% should be palatable even for risk-averse investors. IXUS allocates about 29% of its combined geographic exposure to Japan and the U.K. China is the fund's largest emerging market weight at just over 7%. ### iShares Core Conservative Allocation ETF (AOK) Expense Ratio: 0.25% If asset allocation is not your thing, some ETFs can help ease that burden. The iShares Core Conservative Allocation ETF (NYSEARCA:AOK) is one of the best ETFs for investors seeking a conservative mix of bonds and equities. Best of all, this does the asset allocation for the investor. AOK's seven holdings are other iShares, five of which are equity funds. However, the fund lives up to its conservative billing as over 70% of its weight is dedicated to two bond funds. That gives AOK a significant dividend yield and a significantly lower standard deviation than a broad market index such as the S&P 500. * 7 Best Stocks to Buy Until the Next Seismic Shift Due to its heavy fixed income tilt, AOK is one of the best ETFs for investors looking for a traditional approach to lowering portfolios' correlation to major equity benchmarks like the S&P 500. ### WisdomTree U.S. MidCap Dividend Fund (DON) Expense Ratio: 0.38% It is often said the mid caps are the overlooked segment of the equity market. It is also frequently noted that mid-cap stocks historically outperform their large-cap rivals, while offering less volatility than small-cap stocks. Knowing these factors, it is safe to say well-balanced portfolios should include more than just large-cap equities. The WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON) is one of the best ETFs in the mid-cap space and not just because it comes with a dividend buffer, though that helps. DON's trailing 12-month dividend yield of 2.59% is nearly 120 basis points above the yield on the S&P MidCap 400 Index. Over long holding periods, DON has a track record of outperforming the S&P MicCap 400 as well as actively managed mid-cap funds. The fund's long-term performance and status as one of the best ETFs for mid caps justify a fee that is above those found on more basic mid-cap strategies. DON, which also holds about 400 stocks, allocates 34.70% of its weight to the consumer discretionary and real estate sectors. ### Vanguard Total Bond Market ETF (BND) Expense Ratio: 0.05% As was noted earlier, well-balanced portfolios should not be overly allocated to a single asset class. For investors that are new to fixed income funds, total market exposure makes a lot of sense, particularly when it comes with a low fee and lots of liquidity. Enter the Vanguard Total Bond Market ETF (NYSEARCA:BND), one of the best ETFs for diversified bond exposure. * 10 Consumer Stocks to Buy for Income BND "actually makes this a pretty good complement to stocks because those more highly rated conservative bonds tend to provide good downside protection. So in periods when the stock market is selling off this can provide a nice counterbalance to stocks and serve as the defense within your portfolio," according to Morningstar. ### ProShares S&P 500 Dividend Aristocrats ETF (NOBL) Expense Ratio: 0.35% Building a well-balanced portfolio can mean investing for the long term and dividends definitely deserve a place at the long-term investing table. Moreover, safe, steadily rising dividends are vital to investors' long-term total returns. The ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL) is one of the best ETFs for investors looking for broad exposure to stocks with a long histories of consistently boosting payouts. NOBL targets the S&P 500 Dividend Aristocrats Index, which only includes companies that have increased dividends for 25 consecutive years. There are other reasons why NOBL is one of the best ETFs for truly balanced portfolios. "Since year-end 1989, there have been six calendar years of negative performance for the S&P 500--and in all six years, the S&P 500 Dividend Aristocrats outperformed the equity benchmark by an average of 13.28%. In fact, the S&P 500 Dividend Aristocrats produced a positive total return in three of those years," according to S&P Dow Jones. ### Invesco S&P 500 Low Volatility ETF (SPLV) Expense Ratio: 0.25% Some implementation of factor-based strategies can be useful in well-balanced portfolios and given the long-term nature of such portfolios, the Invesco S&P 500 Low Volatility ETF (NYSEARCA:SPLV) is one of the best ETFs to consider. SPLV follows the S&P 500 Low Volatility Index, a collection of the 100 S&P 500 members with the lowest trailing 12-month volatility. Low volatility funds usually do not capture all of the upside during strong bull markets. Rather, products like SPLV are designed to limit downside when stocks slide. If they do what they are supposed to do, funds like SPLV can be some of the best ETFs in rough market environments as was the case late last year. * The 10 Best Index Funds to Buy and Hold "The fourth quarter of 2018 was exceedingly tough for US equities, with no gains to be found in any of the indexes tracked by our quarterly factor scorecard. And yet, certain factors -- namely Low Volatility and Dividend Yield -- were able to significantly cushion the blow suffered by the broad market. While the S&P 500 Index lost 13.52% in the quarter, the S&P 500 Low Volatility Index fell just 5.22%," according to Invesco. ### Vanguard Total Corporate Bond ETF (VTC) Expense Ratio: 0.07% When building what they think are adequately diversified portfolios, many investors allocate to just one bond fund or one corner of the bond market. Opting for a diversified bond fund can leave fixed income investors short on yield. The Vanguard Total Corporate Bond ETF (NASDAQ:VTC) is one of the best ETFs for boosting your portfolio's yield without moving to junk bonds. As an ETF of ETFs, VTC holds three other corporate bond ETFs by Vangaurd, which helps diversify duration risk while enhancing the fund's yield profile. The average duration of VTC's 3,837 holdings (one of the largest rosters in the corporate bond space) is seven years. Almost half of VTC's holdings carry BBB ratings. VTC is also one of the best ETFs for cost-conscious investors, as only eight corporate bond ETFs have lower expense ratios than this Vanguard fund. As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks to Buy Right Now * 7 Stocks That Have Big Headwinds In 2019 * 5 Terrific Tech Stocks That Will Make You Forget About FANG Compare Brokers The post 7 Best ETFs for a Well-Balanced Portfolio appeared first on InvestorPlace.
While adoption of exchange-traded funds (ETFs) continues to increase among advisors, institutional investors and other professionals, this asset class is favorable for novice investors as well. In fact, strong arguments can be made that ETFs are ideal for novice investors. Many of the best ETFs feature low fees, efficient, broad exposure to equities and bonds and some of the best ETFs also offer cost-effective, diversified access to international equities. ETFs also help novice investors avoid the need to pick individual stocks, an endeavor many professional investors have not mastered. "[ETFs] take the benefits of mutual fund investing to the next level. ETFs can offer lower operating costs than traditional open-end funds, flexible trading, greater transparency, and better tax efficiency in taxable accounts," according to Fidelity. "There are drawbacks, however, including trading costs and learning complexities of the product. Most informed financial experts agree that the pluses of ETFs overshadow the minuses by a sizable margin." InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Top 10 Global Stock Ideas for 2019 From RBC Capital For novice investors and rookie portfolio builders, here are some of the best ETFs to consider. ### Schwab US Broad Market ETF (SCHB) Expense Ratio: 0.03%, or $3 annually per $10,000 invested Some inexpensive ETFs can be disappointments, but, then again, low fees are often hallmarks of some of the best ETFs. For novice investors, the Schwab US Broad Market ETF (NYSEARCA:SCHB) resides in the latter category. SCHB is one of a handful of ETFs that have taken expense ratios down to 0.03% per year, meaning return erosion via fees is minimal with this product. SCHB tracks the Dow Jones U.S. Broad Stock Market Index and the fund is home to nearly 2,500 of the largest domestic companies as weighted by market value. For novice investors, SCHB is also one of the best ETFs because its investment objective is straight forward and easy to understand. Overall and over the past three years and five years, SCHB has four-star ratings from Morningstar. SCHB allocates about half its weight to technology, healthcare and financial services stocks. Over the long-term, investors should expect returns with SCHB that do not deviate too much from the S&P 500. ### Vanguard Total International Stock ETF (VXUS) Expense Ratio: 0.11% Novice investors should not ignore international equities and the Vanguard Total International Stock ETF (NASDAQ:VXUS) is one of the best ETFs for tapping markets outside the U.S. Plus, VXUS is cheaper than 89% of competing strategies, according to issuer data. VXUS is one of the best ETFs for new investors for a couple of other reasons. First, this Vanguard fund features a massive amount of stocks, almost 6,400. Second, VXUS combines developed and emerging markets exposure, tilting toward the former. On that note, about 25 countries are represented in this fund, meaning investors are not making concentrated geographic bets. * 10 Growth Stocks With the Future Written All Over Them "The fund's total and risk-adjusted returns were similar to the category average between its launch in January 2011 and November 2018," said Morningstar in a recent note. "It remained fully invested, while its better-performing competitors were more defensive, giving them an advantage during this period of lackluster market performance." ### WisdomTree U.S. MidCap Dividend Fund (DON) Expense Ratio: 0.38% Novice investors should not make the same mistake that many of their season counterparts make and that is avoiding mid-cap stocks. Over long holdings periods, mid caps have a rich tradition of outpacing large caps, while often offering better risk-adjusted returns than small-cap stocks. Investors can access mid caps with the benefit of dividends via the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON), which is the dominant name among mid-cap dividend ETFs. DON's methodology is slightly more complex than more prosaic ETFs, such as SCHB and VXUS, but new investors should not be intimidated. At its core, DON looks for mid-cap stocks with sound fundamentals and the ability to continue growing dividends, which gives this fund a value tilt. What makes DON one of the best ETFs is that it consistently proves its mettle. Since coming to market 12 years ago, DON has been one of the best ETFs in the mid-cap space as well as offering investors consistent out-performance of many higher fee, actively managed rivals. ### iShares Core Growth Allocation ETF (AOR) Expense Ratio: 0.25% A wise idea for some inexperienced investors is to forego attempting to pick among individual asset classes and let a single fund do that legwork. Some of the best ETFs use what is known as the ETF of ETFs structure, meaning the fund's underlying holdings are other ETFs. The iShares Core Growth Allocation ETF (NYSEARCA:AOR) is one of those products. What makes AOR one of the best ETFs for new investors is its breadth across multiple asset classes. While AOR holds just seven other iShares ETFs, the fund merits consideration for including multiple corners of the bond market as well as mid- and small-cap ETFs and international equity funds. * 10 Companies That Could Post Decelerating Profits Well-known holdings in AOR include the iShares Core S&P 500 ETF (NYSEARCA:IVV) and the iShares Core MSCI EAFE ETF (CBOE:IEFA). ### Vanguard Dividend Appreciation ETF (VIG) Expense Ratio: 0.08% As was noted earlier with DON, dividend strategies should be embraced by novice investors. One of the best ETFs for exposure to large-cap dividend payers is the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG). VIG is also one of the least expensive dividend ETFs. Its annual fee of just 0.08% makes it cheaper than 92% of competing funds. VIG is also one of the best ETFs because its strategy is easy for any investor to understand. This Vanguard fund tracks the Nasdaq Dividend Appreciation Index, which requires member firms to have dividend increase streaks of at least a decade. That makes VIG one of the best ETFs for investors looking for a steady diet of reliable payout growth. VIG holds 182 stocks, over half of which hail from the industrial and consumer staples sectors. Healthcare and consumer discretionary names combine for almost a quarter of the fund's weight. ### Invesco QQQ (QQQ) Expense Ratio: 0.20% The Invesco QQQ (NASDAQ:QQQ), also known as the Nasdaq 100 tracking ETF, is one of the best ETFs for rookie investors with higher levels of risk tolerance and those seeking significant exposure to the technology sector. With the recent debut of the communication services sector, QQQ's technology weight has been reduced to 43% with a 23% weight to communication services names. Either way, QQQ is one of the best ETFs for investors looking for exposure to large-cap technology and internet stocks. The rub there is when growth stocks, such as the FAANG quintet, struggle, QQQ does, too. The once high-flying QQQ is currently saddled with a fourth-quarter loss of almost 20%. * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One QQQ holds 102 stocks, but this is not necessarily one of the best ETFs for investors looking to avoid concentration risk as Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) combine for nearly a third of QQQ's roster. ### iShares Edge MSCI USA Value Factor ETF (VLUE) Expense Ratio: 0.15% Value strategies have struggled over the course of the current bull market in U.S. stocks, but historically, value stocks have been sturdy, making the related funds some of the best ETFs for novice investors to consider. The iShares Edge MSCI USA Value Factor ETF (CBOE:VLUE) is one of the best ETFs in the value lot. VLUE, which is more than five and a half years old, follows the MSCI USA Enhanced Value Index. The fund is a value play with a price-to-earnings ratio of 11.84, which is well below the comparable ratio on the S&P 500 despite the broader market's recent slump. What makes VLUE one of the best ETFs in the value space is that its sector allocations are not typical among value strategies. Typically, value funds are heavily allocated to energy and financial services stocks, two of this year's worst-performing sectors. Those sectors combine for 18.47% of VLUE's weight, but this fund devotes 36% of its combined weight to technology and healthcare stocks. As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 7 Best ETFs for Novice Investors appeared first on InvestorPlace.
Although the Federal Reserve has raised interest rates three times this year with market observers widely expecting a fourth rate hike in December, domestic dividend growth remains impressive.
Mid-cap stocks are often seen as the overlooked segment of the equity market. With that, the group's dividend capabilities are also overlooked by some investors. The WisdomTree U.S. MidCap Dividend Fund (DON) is one of the exchange traded funds that can change investors' views of dividends and mid-caps for the better.
With the Federal Reserve continuing its course of raising interest rates, some investors may think income stocks and the related exchange-traded funds (ETFs) are vulnerable or destined to produce lagging returns. On the back of recent strength, the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG), the largest U.S. dividend ETF by assets, is up 11.3% year-to-date, just ahead of the 10.8% returned by the S&P 500. When it comes to income stocks, data suggest there is more good news than bad on the dividend growth front.
Mid-cap stocks and the related ETFs often go overlooked compared to large- and small-caps. The WisdomTree U.S. MidCap Dividend Fund (DON) is one of the more venerable names among mid-cap dividend ETFs. DON's “approach balances firm size (larger companies tend to make higher aggregate dividend payments) against yield.
WisdomTree U.S. MidCap Dividend ETF DON employs a fundamental weighting approach and is a strong candidate for exposure to dividend-paying U.S. mid-cap stocks. This fund weights its holdings by their expected dividend payment, which effectively diversifies risk, and rebalances into stocks as they become cheaper relative to their dividends. Many dividend-oriented funds land in the mid-value Morningstar Category because they weight large-cap stocks by dividend yield or equally, which knocks down their portfolio's weighted average market cap.
The ETF industry has something for everyone -- the WisdomTree U.S. MidCap Dividend Fund (ticker: DON) holds mid-cap U.S. stocks and invests in companies that pay regular cash dividends. In this week's ...