53.67 +0.13 (0.24%)
After hours: 5:37PM EDT
|Bid||53.00 x 1100|
|Ask||53.57 x 800|
|Day's Range||53.29 - 53.54|
|52 Week Range||45.59 - 57.87|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.99|
|Expense Ratio (net)||0.09%|
Wall Street pros, the analyst community and individual investors alike were thrown for a loop in 2018. American tariff disputes with the rest of the world, wild energy-price swings and global growth concerns not only ravaged the market at various points, but also has the experts preaching caution as we enter the new year. The best ETFs for 2019, then, are going to need to accomplish a couple specific goals.For one, you'll want some ETFs that position you defensively while still allowing you to enjoy at least some upside should the market head higher despite all the headwinds it faces. Numerous expert market outlooks have the Standard & Poor's 500-stock index climbing in 2019, but none of them are exuberant and all of them warn of numerous potential pitfalls. Anchoring your portfolio with funds that emphasize, say, low volatility or income can put you in a strong position no matter what the market brings.You also need to take your shots - stocks may end up being sluggish as a whole, but that doesn't mean certain areas of the market can't explode all the same. So some of the top ETFs for the year ahead will focus on specific sectors, industries and even other areas of the world to try to generate outperformance.Here are the best ETFs to buy for 2019. These 19 funds run the gamut, from highly diversified baskets invested in thousands of companies, to concentrated portfolios that use just a couple dozen stocks to benefit from a specific theme. There are ETFs for conservative investors and risk takers alike. And while most of these picks are passive index funds, there are even a few ETFs that tap the brainpower of skilled active management. Take a look: SEE ALSO: The 27 Best Mutual Funds in 401(k) Retirement Plans
A version of this article was published in the January 2019 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. Building a strong portfolio foundation is one of the most important things you can do to maximize your odds of investment success.
This article originally appeared in Morningstar Direct Cloud and Morningstar Office Cloud. The pace of fee cuts on passively managed funds may have slowed in some corners of the fund universe, but not at Vanguard.
Vanguard Group has trimmed the fees on a handful of ETFs in the latest round of cost cutting on a number of products to gain an edge on competitors as an increasing number of investors look to cheap investment options.
Investors have literally thousands of exchange-traded funds (ETFs) to choose from. Considering most portfolios only need a handful, that makes picking the best ETFs a daunting task. More than a dozen funds track well-known basic indexes such as the Standard & Poor's 500-stock index, Dow Jones Industrial Average and Russell 2000. Scores of other ETFs try to beat those benchmarks by carving out certain types of stocks or bonds, or by emphasizing things such as value or share-price momentum - anything to give them an edge. We've picked The Kiplinger ETF 20 with an eye toward low fees, making this a list of the 20 best cheap ETFs to use to reach your investing goals. Our selections will give you anything from broad market exposure to narrow tactics meant to help you fill specific gaps in your portfolio. Check out our analysis of these 20 high-quality ETFs. ### SEE ALSO: The 19 Best ETFs for a Prosperous 2019
The stock market, like any other market, is simply the sum of all transactions for shares of publicly listed companies, millions of which are conducted every day. Hour by hour, minute by minute, Benjamin Graham's voting machine is hard at work as market participants express their opinions regarding a company's future prospects through the price at which its shares transact. A company's share price resulting from this system, when multiplied by total shares outstanding, forms its market capitalization.
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.
Times are tough for global equity markets, and international markets have been among the worst offenders for much of 2018. Investors considering ex-U.S. markets in 2019 may want to look at highly diversified, cost-effective exchange traded funds, such as the Vanguard Total International Stock ETF (NASDAQ: VXUS). VXUS targets the FTSE Global All Cap ex US Index.
This has been a rough year for international equities and the relevant exchange traded funds, but with plenty of ex-US markets looking attractively valued, some investors may want to nibble at international ETFs in 2019. Enter the Vanguard Total International Stock ETF (VXUS) . VXUS tracks the FTSE Global All Cap ex US Index and charges just 0.11% per year, making it cheaper than 89% of competing strategies, according to Vanguard data.
The exchange-traded fund's ultralow expense ratio and market-cap-weighted approach curb the cost of ownership, providing it with a significant advantage over its more expensive rivals. The fund tracks the FTSE Global All Cap ex US Index, which targets stocks of all sizes from more than 40 overseas developed and emerging markets. It weights its holdings by market capitalization, an approach that benefits investors by capturing the market's consensus opinion of each stock's value while mitigating turnover.
SCHF has a well-diversified, cap-weighted portfolio that captures the market's collective wisdom, and is complemented by one of the lowest expense ratios in the foreign large-blend Morningstar Category. The fund's target index, the FTSE Developed Ex US Index, is composed of large- and mid-cap companies from 24 developed markets outside of the United States, including companies listed in Canada and South Korea. FTSE defines large- and mid-cap firms as those that land in the top 86% of the investable universe by market capitalization.
For many investors, a crucial aspect of the exchange-traded fund (ETF) is its user-friendly nature. This way of thinking, as well as the low costs and steady returns generally associated with ETFs as a group of investment opportunities, have prompted massive growth in the industry. Indeed, in just a few years, ETFs have ballooned into a multi-trillion dollar market.
The Vanguard Total Stock Market ETF (VTI) continues cementing its status as one of the largest US-listed exchange traded funds. Recently, the venerable VTI topped $100 billion in assets under management, becoming just third ETF to do so. The other ETFs to accomplish that feat are the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) .
There’s a reason why money continues to flow into exchange-traded funds (ETFs) and other indexed products. Passive and indexed portfolios take the guesswork out of market-timing decisions because index funds own all the stocks within a certain market segment. Buying index funds on a regular schedule and sticking to that plan is one of the best things you do for your portfolio.
June 11, 2018 The international financial markets remain full of fear and doubt causing those who look abroad to remain cautious. This hesitancy to commit new monies overseas continues to benefit U.S. risk assets. While most global risk assets pulled ...