To start investing in US stocks, here are some best ETFs (EXCHANGE TRADED FUNDS) listed on the US stock exchanges that will be a good option to trade. As investors buy individual stocks in the stock market, you end up buying a bunch of stocks representing either a specific sector or specific index. US ETFs will be an advantage for diversifying in international stocks and keep you diversified across many leading themes in the US stock market.
From small caps to large caps, The US ETFs are available to keep your portfolio well diversified.
The Best Performing ETFs (EXCHANGE TRADED FUNDS) in the U.S are as follows:-
- SPDR S&P 500 ETF TRUST (SPY)
IT is popularly known as the SPY ETF, or S&P 500 index is an index of a diversified group of large-cap US companies which consists of eleven major industries. It is one of the indexes of the most positive signal and one of the best single indicators of large-cap US equities and this particular index consists of the world’s three sectors named INFORMATION TECHNOLOGY, HEALTH CARE, AND COMMUNICATION SERVICES which total about 50% share in the index.
- SPDR DOW JONES ETF TRUST (DIA)
This index consists of 30 large-cap US stocks represented in the DOW JONES INDUSTRIAL AVERAGE or is called DOW 30. It is a unique index and slightly different from other indices. It represents those companies that are only based and founded in the US. Unlike other indices, DOW 30 is not governed by any rules or market capitalization.
- INVESCO QQQ TRUST
If you buy top-notch stocks in NASDAQ MARKET then INVESCO QQQ ETF is the one that makes you profitable. It is an exchange-traded fund that has access to 100 companies in a single investment such as FACEBOOK, AMAZON, GOOGLE, and NETFLIX. Investors are dying to invest in INVESCO QQQ ETF as it is named the best in the NASDAQ market and it will help you to make a return on investment as it consists of good large-cap companies.
- Shares RUSSELL 2000 GROWTH ETF
This index is popularly known as IWY and it is for small-cap US companies. This includes 2000 small-cap companies. If you wish to buy a huge lot of small-cap companies in the US, then it is the best possible way to buy a lot of 2000 stocks through the exchange-traded fund.
- VANGUARD TOTAL STOCK MARKET ETF
This is something interesting to know as it gives you access to the entire US stock exchange including the equity market, small, mid, and large-cap growth, and value stocks. It gives exposure to traders to track over 3900 stocks of the US stock market. The largest 5 sectors of VANGUARD TOTAL STOCK MARKET ETF are-
- CONSUMER DISCRETIONARY
- HEALTH CARE
Some of the holdings include APPLE, MICROSOFT, FACEBOOK, AND TESLA.
Best Performing ETFs Last 10 Years
Wall Street is the king of bull markets. Though the covid-19 is the worst situation that makes Wall Street down including sell-off markets again surged off all the worries of investors and made an all-time high. The best performing ETF of the last 10 years are as follows:-
iShare PHLX semiconductor ETF SOXX
This is one of the highest growing ETFs in the past 10 years and the increasing percentage is reached 663.4% according to Forbes data. The rising in consumer spending on technology, the sudden boom of 5G, increment sales of high-end smartphones, and trade deal among US-CHINA which propelled the technology and semiconductor space.
SPDR S&P BIOTECH ETF
The second highest ETF named SPDR S&P BIOTECH ETF AND the increasing percentage is reached 593.4% according to Forbes data. In the past decade, FDA approvals for cancer therapies outdid endorsements for antibiotics and drugs used to treat nervous system disorders, mergers and acquisitions are under this category.
INVESCO NASDAQ INTERNET ETF
The third highest ETF is INVESCO NASDAQ INTERNET ETF and the percentage is 532.8% according to Forbes history. The reason behind the increment of this index is the emerging era of internet usage among users, e-commerce is play a very vital role in lifting stocks. The global internet users have risen suddenly from 23.5% to 59% at the end of October 2021. The work-learn-shop-home-trend everything will be through the internet and boost the space.
BEST PERFORMING ETFS IN THE YEAR 2021
The best performance ETF in the year 2021 is in the energy sector as they are the big winner from starting to ending of lockdown. The oil prices are very volatile in the year 2021 as it was $54.7 per barrel at the start of the year as there is a shortage of oil and hit the global economy but the oil prices peaked by the end of the year 2021 and it comes to $83.5 barrel which will lead to inflation. Hence,
The best performing ETF in the year 2021 is the oil and gas exploration and production ETF.