Investors seeking a simplified investment strategy can turn to exchange-traded funds (ETFs) to capitalize on market opportunities. ETFs offer exposure to multi-year trends and themes, making them an attractive option for diversifying investment portfolios. With their low-maintenance nature, minimal fees, and ability to target a range of stocks with a single investment, ETFs are gaining popularity among investors.
Here are three top-performing ETFs that align with a strategic, low-cost investment approach:
1. iShares US Technology ETF (IYW): This ETF provides access to elite U.S. tech companies, including market leaders such as Microsoft, Apple, and Nvidia. With approximately 45% of its assets invested in these tech giants, IYW is well-positioned to outperform the broader market. Additionally, its reasonable expense ratio of 0.40% makes it a cost-effective option for tech investors. Over the past decade, IYW has delivered a remarkable 10-year return of 531%, surpassing the S&P 500’s gain of 179%.
2. Global X Artificial Intelligence & Technology ETF (AIQ): AIQ offers investors exposure to the booming artificial intelligence (AI) industry, which has been a significant investing trend in recent years. With an impressive annual growth rate of 31% in the past year and over 120% in the past five years, AIQ stands out among AI-focused ETFs. Its portfolio of 91 holdings and competitive expense ratio of 0.68% make it an attractive option for those looking to capitalize on the AI and big data sectors. AIQ’s strategic distribution of investments across the AI landscape helps mitigate risk and ensures sustained performance.
3. Avantis U.S. Large Cap Value ETF (AVLV): AVLV provides investors with an opportunity to tap into high-quality, undervalued large-cap U.S. stocks. By focusing on stocks trading at lower valuations and strong profit margins, AVLV aims to enhance potential returns. With holdings in 314 companies across various sectors, including healthcare, technology, and financial services, AVLV offers a balanced approach to diversifying portfolios. The ETF currently manages over $3.6 billion in assets and yields 1.62%, with two consecutive years of payout growth.
These top-performing ETFs have demonstrated robust fundamentals and steady returns over the years, making them attractive options for investors seeking long-term upside potential. While this article provides information on these ETFs, it is essential for investors to conduct thorough research and consider their individual investment goals before making any investment decisions.