One important question people ask financial advisors these days are – What are the best global equity ETFs and real return bonds? As investors are searching for alternative sources of yield nowadays, the best ETFs can fit their description. The exchange-traded fund is one of the types of pool investment security that will operate as a mutual fund. It tracks a particular index commodity, sector or other asset but it is different from a mutual fund. You can purchase it or sell it on a stock exchange as an ordinary stock. Further, the best ETFs can track specific investment strategies.
Here you can know about the best equity ETFs you can choose.
Table of Contents
- 1. Invesco Dynamic Energy Exploration & Production ETF (PXE)
- 2. iShares Global Energy ETF (IXC)
- 3. Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF (BCI)
- 4. iShares MSCI Brazil ETF (EWZ)
- 5. Vanguard Value ETF (VTV)
- 6. Vanguard Mega-Cap Growth ETF (MGK)
- 7. Vanguard Short-Term Bond ETF (BSV)
- 8. The SPDR S&P 500 ETF (SPY)
- 9. The iShares Core MSCI EAFE ETF (IEFA)
1. Invesco Dynamic Energy Exploration & Production ETF (PXE)
If you do not prefer to look at the top trends on Wall Street then you can make use of the energy fund. It is more focused on companies that require oil and gas. Now the fund includes 30 positions like the bigger stocks roughly $150 billion ConocoPhillips and also the less known mid-size players.
Further, the ETF chases the stocks in the sector along with the strongest price momentum and earnings momentum. So this dynamic approach delivers as the fund that tacks on an amazing 78% this year. This shows that it is moving in the right direction.
If you want to focus more on energy then the best ETF is iShares Global Energy ETF. It serves as an alternative to the smaller and boutique Invesco fund. Also, it has $2 billion in total assets and contains fifty stocks. Plus it takes on a global approach that includes some of the biggest energy stocks in the world. Its major playground is the U.S.A with the top holdings of Exxon Mobil Corp and the Chevron Corp.
Most importantly, their international stocks are BP Plc which is still very well known to the domestic investors. Therefore if you like to have a more diversified way to take part in surge energy then you can consider IXC.
3. Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF (BCI)
If you are looking beyond oil and gas you can choose Aberdeen which offers a diversified way to play commodity investments. It means you can think about gold, corn, copper and other raw materials. There are roughly two dozen commodities and it is selected based on the trading volume and also the overall production.
Further, there is a $1 billion fund which is structured in a way to disallow pesky K-1 tax forms that can disturb the commodities or futures investors. If you require a hedge against the broad trends of inflation you can choose BCI. Also, the fund is more than 30% this year.
The EWZ consists of $6 billion iShares which has the top fifty names in the region. The stocks included in it are metals and mining giant Vale SA (VALE). Also the state-run oil giant Petroleo Brasileiro SA (PBR) and Latin American bank Itau Unibanco Holdings SA (ITUB) is also part of it.
It is on the rise because of the surging commodity prices and these Equity ETFs are also benefiting from the broader economic recovery that started in Brazil.
5. Vanguard Value ETF (VTV)
This is one of the best ETFs because VTV’s growth to value continued to happen on Wall Street. It has more than $100 billion in assets so it is a great and affordable way to move away from usual large-cap tech stocks. With this, you can stake up in the top US stocks like Johnson & Johnson (JNJ) and Proctor & Gamble Co. (PG). But there are top sector holdings in the health care and financial services. In this way, you can avoid the formulation of large-cap funds and depend on the lower-risk value stocks.
6. Vanguard Mega-Cap Growth ETF (MGK)
As many stocks are hurting in 2022 the long term is very good for the investors who want to get a good position in the down market. For the people who believe that the big winners will be on the winning side in the coming years, they can choose the Vanguard Mega-Cap Growth ETF.
Through this, they can add “wide moat” stocks along with a large scale on the portfolio. Hands down you will get the 100 U.S. stocks dominated by the favourites like the Microsoft Corp. (MSFT) and Apple Inc. (AAPL). It is a median market cap of $540 billion or so in the holdings. This summer MGK is worth a look.
7. Vanguard Short-Term Bond ETF (BSV)
There are investments beyond stocks that are worth the look as well. You can choose the equity ETFs BSV as it is one of the widely held ETFs in this category which serves as a short term treasury fund. It is holding tough as the other investments are under pressure in the rising interest rate environment. If you are worried about continued volatility, you will find that the value of BSV comes from stability and capital preservation.
8. The SPDR S&P 500 ETF (SPY)
This is a well-established equity ETF which is attracting a lot of attention from the tactical traders and buy-and-hold investors. Its fund tracks S&P 500 Index and it is a group of equities of large capitalization which you can find listed on the US stock exchanges. The asset under management is $408.8 billion and its one-year performance is 28.52%.
IEFA provides a good amount of exposure to the developed-market stocks in Europe and Asia. The benchmark index of these equity ETFs is MSCI EAFE covers 98% of global equity markets. It has small caps stocks which its competing funds do not include. The two top spots are taken by Japan and the U.K.
It comes with nearly 3,000 equities and the IEFA is a well-diversified fund with low ownership costs. So it is a prime choice for both the short-term and long-term investors.
These are the best ETFs you can consider. It will offer you a high yield in the long run.