Exchange-traded funds (ETFs) are becoming increasingly popular among investors due to their ability to provide exposure to a diverse range of assets in just one fund. These types of funds often have low expenses and trade on exchanges like stocks, making them convenient and accessible for investors.
As we approach the halfway point of 2023, Bankrate has released its list of the best ETFs for April. The list includes some well-known names such as SPDR S&P 500, iShares Core MSCI EAFE, Vanguard FTSE Emerging Markets ETF (VWO), and Vanguard Total International Stock ETF (VXUS).
Investors looking for exposure to high dividend yield companies can consider Highend Dividend Yield Index (VYM) and U.S. Equity Dividends (SCHD). These funds provide access to a portfolio of bonds while still offering competitive returns.
One of the most popular ways to invest in the market is through large-cap stocks. The Standard & Poor’s 500 Index delivers average annual returns around 10 percent over time. Large-cap companies typically allocate much tinier stakes towards smaller companies.
The S&P 500 index tracks the most prosperous American companies trading on exchanges while Nasdaq-100 Index tracks an index of large-cap US growth stocks.
Bankrate selected these top-performing funds based on two criteria: None are screener for large-caps (growth, value, blend), and none were among the top performers over the last five years.
ETFs continue gaining popularity from both retail as well as institutional investors globally who have been seeking passive investment options with lower expense ratios compared with traditional mutual funds.
In conclusion, exchange-traded funds continue growing rapidly in popularity due to their low costs and convenience factor that they offer investors when it comes for investing in different asset classes such as equities, fixed income, commodities and currencies. With the Bankrate's list of top ETFs for April 2023, investors can make informed decisions on where to put their money for maximum returns.