Article Hero

Top 20 Best ETFs to Invest in July 2024

Best ETFs to invest in 2024
Cristian Cochintu
Cristian Cochintu
25 January 2024

If ETFs are on your list of investments for 2024, you are in the right place. Below you'll find some of the best ETFs to invest in for 2024 and beyond based on positive analyst coverage, low expense ratios, and holdings.  

There are nearly 3,000 exchange-traded funds (ETFs) only in the U.S. today. This rich vein of portfolio diversification gives investors easy access to professionally managed funds covering every asset class and market sector. It also makes choosing the best ETFs to invest in a very challenging task. 

Exchange-traded funds can be an excellent entry point into the stock market for new investors. They’re cheap and typically carry lower risk than individual stocks since a single fund holds a diversified collection of investments. 

Some of the best ETFs to invest in for 2024 

To arrive at the below list, we looked at analyst coverage for ETFs with low expense ratios that hold the largest international and U.S.-based companies, government bonds, currencies, commodities, and cryptocurrencies. A closer look into each fund follows in the next section. 

           

The ETFs highlighted on this list are sourced from industry analysts, but they may not be a perfect fit for your portfolio. Before you decide to purchase any of these ETFs listed above, do plenty of research to ensure they are aligned with your financial goals and risk tolerance. 

Should You Invest in ETFs in 2024? 

2023 was marked by stellar returns across tech-focused ETFs. Crypto, semiconductor, and metaverse ETFs all shot the lights out amid slowing rate hikes from the Federal Reserve and Nvidia’s boom.  

Increased inflation data and expectations of rate cuts in the second half of 2024 caused blockchain equity ETFs to yield triple-digit returns in 2023. The market's attitude towards the impending spot bitcoin ETF from Fidelity Investments, BlackRock, ARK Investment Management, WisdomTree, and Valkyrie, which was approved by the SEC at the beginning of the year, is partly responsible for the cryptocurrency's surge.  

Crypto equities ETFs have performed better in 2023 thanks to all these variables. Some of the best ETFs were the VanEck Crypto and Blockchain Innovators UCITS ETF (DAGB), which outperformed all other European-listed ETFs with returns of 283.3%. The iShares Blockchain Technology UCITS ETF (BLKC) and the WisdomTree Blockchain UCITS ETF (WBLK) both surged, but the Global X Blockchain UCITS ETF (BKCG) was the most profitable ETF with a 268.7% growth.

Semiconductor, metaverse, and AI ETFs were also among the top performers last year, with exposure to the ‘magnificent seven’ chipmaker Nvidia delivering impressive returns.

The VanEck Semiconductor UCITS ETF (SMGB), which had a 9.5% exposure to the chipmaker, surged 72.6% in 2023, while the Amundi MSCI Semiconductors ESG Screened UCITS ETF (SEMG), which had a 28.3% weighting to Nvidia, soared 79%.  

Nvidia-featured Metaverse ETFs provided investors with substantial profits as well. Franklin Templeton Metaverse UCITS ETF (METU), which has a 5% Nvidia weighting and returned 71.5% last year, was among the best ETFs.  

The increase of ETFs with Nvidia weightings last year was boosted by the explosion of generative AI, most notably the introduction of ChatGPT in November 2022. OpenAI’s ChatGPT catapulted tech ETFs into the spotlight, with investor attention pivoting to companies involved in AI software and computer chip production.

The best ETF was Xtrackers Artificial Intelligence & Big Data UCITS (XAIX) with a 68.4% return amid a 7.5% Nvidia weighting. Echoing this was the Global X Robotics & Artificial Intelligence UCITS ETF (BOTG), which has an 8.8% weighting and increased 31.3% over the 12 months.

More broadly, improved inflation data coupled with expectations of rate reductions in the second half of 2024 have been instrumental in preserving market optimism for tech-focused ETFs. If predictions are correct, tech ETFs are forecasted to continue to overperform the general market in 2024.

While is helpful to understand what went on in 2022, it isn’t necessarily an indication of how any of these funds will perform in the future and consider them the best ETFs to invest in for 2024. 

 

Some of the best ETFs to invest in 2024 detailed 

One way for beginner investors to get started is to buy ETFs that track broad market indexes, such as the S&P 500, US Tech 100, USA30, FTSE100, or DAX40. In doing so, you’re investing in some of the largest companies in a country, with the goal of long-term returns. Other factors to consider include risk and the fund’s expense ratio, which is the amount you’ll pay in fees every year to own the fund — the lower the expense ratio, the less it will eat into your returns. 

Here are some of the best ETFs for 2023 according to analysts’ coverage and expert forecasts:  

Top Equity ETFs 

Equity ETFs provide exposure to a portfolio of publicly traded stocks and may be divided into several categories by where the stock is listed, the size of the company, whether it pays a dividend, or what sector it’s in. So, investors can find the kind of stock funds they want exposure to and buy only stocks that meet certain criteria. 

 

Stock ETFs tend to be more volatile than other kinds of investments such as CDs or bonds, but they’re suitable for long-term investors looking to build wealth. Some of the most popular equity ETF sectors and their historical performance include: 

Some of the best U.S. market-cap index ETFs 

This kind of ETF gives investors broad exposure to publicly traded companies listed on American stock exchanges using a passive investment approach that tracks a major index such as the S&P 500 or Nasdaq 100. 

Why SPY is one of the best ETFs to buy today?

best U.S. market-cap index ETFs
 

SPDR S&P 500 ETF Trust (SPY) is the best-recognized and oldest US-listed ETF and typically tops rankings for largest AUM and greatest trading volume. The fund tracks the massively popular US index, the S&P 500. Few realize that S&P's index committee chooses 500 securities to represent the US large-cap space - not necessarily the 500 largest by market cap, which can lead to some omissions of single names. Still, the index offers outstanding exposure to the US large-cap space. 

  • 1-year performance: 19.71% 
  • 3 years annualized performance: 9.85% 
  • 10 years annualized performance: 11.75% 

Alternatives: Some of the most widely held ETFs in this group also include Vanguard S&P 500 ETF (VOO), iShares Core S&P 500 ETF (IVV), and Invesco QQQ Trust (QQQ). 

Some of the best International ETFs 

This kind of ETF can provide targeted exposure to international publicly traded companies broadly or by more specific geographic areas. Investing in foreign and emerging markets like Chinese stocks introduces concerns such as currency risk and governance risks, since foreign countries may not offer the same protections for investors as the U.S. or EU does. 

Why Vanguard FTSE Developed Markets ETF (VEA) is one of the best ETFs to buy today?

Best International ETFs
 

VEA delivers excellent coverage of developed-market equities outside the US. The fund includes small-caps and Canadian stocks in the portfolio, two areas of the market it had previously ignored prior to a change to a transitional FTSE index in December 2015. The ETF completed the transition and switched to the final version of the FTSE index on June 1, 2016. Stocks are selected and weighted for the index to ensure the holdings are investable, which should allow for the ETF to track the performance return using a replication strategy. Index components are reviewed semi-annually in March and September. In all, VEA offers great exposure to the space. 

  • 1-year performance: 23.48% 
  • 3 years annualized performance: 3.21% 
  • 10 years annualized performance: 3.94% 

Alternatives: Some of the most widely held ETFs also include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE Emerging Markets ETF (VWO), and Vanguard Total International Stock ETF (VXUS). 

Some of the best country ETFs

Country ETFs are investment funds that track the performance of a specific country's financial markets. These funds are often used to gain exposure to foreign markets and to diversify a portfolio. Country ETFs can provide investors with access to stocks, bonds, and other financial instruments in a particular country.

Why iShares MSCI Japan is one of the best ETFs to buy today?

Best ETFs 2024 Japan
Japan is a top choice for investors who do not want to invest in China to participate in Asia's economic growth. The restructuring of the Japanese corporate sector is progressing, partly because the Tokyo Stock Exchange has increased the pressure on listed companies to reform. The iShares MSCI Japan ETF seeks to track the investment results of an index composed of Japanese stocks. Among the top and mid-size companies, the top holdings remain Toyota and Sony, some of the best stocks to buy in 2024 according to the latest institutional forecasts.

Alternatives: Some of the most popular ETFs also include the iShares MSCI UAE (UAE) which invests in the UAE stock market, and iShares MSCI Saudi Arabia (KSA) which invests in some of the best Saudi stocks listed on the Tadawul Stock Exchange.

Some of the best frontier markets ETFs  

Frontier markets include countries that are in the earliest stages of political and economic development. They exist in contrast to emerging market economies, which are further along in implementing economic reform programs that can lead to higher rates of growth. While frontier markets present a significant risk, the potential rewards are faster rates of economic growth in dynamic economies that are characterized by vibrant, youthful populations.

Why FM is one of the best ETFs to buy today?

Best Stocks 2024 FM
The iShares MSCI Frontier 100 ETF is the largest and most liquid frontier market ETF available after Invesco Frontier Markets ETF shuttered in February 2020. The iShares MSCI Frontier 100 ETF (FM) aims to match the performance of the MSCI Frontier Markets 100 Index, which consists of securities from 13 countries, with up to 50% of the fund's assets allocated to just three countries: Kuwait, Vietnam, and Romania. Among the top holdings is Hidroelectrica stock, the renewable power producer that immediately became Romania's biggest listed company after the IPO in 2023, the largest in Europe, and the third largest in the world last year.

Alternatives: The Global X Next Emerging & Frontier ETF (EMFM) aims to match the MSCI Select Emerging and Frontier Markets Access Index. The fund seeks to improve upon emerging market investing by excluding the BRIC, South Korea, and Taiwan economies. 

Some of the best Sector ETFs 

This kind of ETF gives investors a way to buy stock in specific industries, such as consumer staples, energy, financials, healthcare, technology, and more. These ETFs are typically passive, meaning they track a specific pre-set index of stocks and simply mechanically follow the stock index

Why Energy Select Sector SPDR Fund (XLE) is one of the best ETFs to buy today?  

Best Sector ETFs

XLE offers liquid exposure to a market-like basket of oil and gas stocks. “Market-like” in the context of the energy sector means concentrated exposure to the giants in the industry, including companies in the oil, gas, consumable fuels, and energy equipment and services industries as identified by GICS. XLE pulls its stocks from the S&P 500 rather than the total market, so its portfolio mainly favors large caps. Holdings are weighted by market cap, subject to a capping methodology that ensures no single security exceeds 25% at each quarterly rebalance. 

  • 1-year performance: 29.16% 
  • 5 years annualized performance: 9.01% 
  • 10 years annualized performance: 4.77% 

Alternatives: Some of the most widely held ETFs also include the Financial Select Sector SPDR Fund (XLF), Vanguard Information Technology ETF (VGT), and Industrial Select Sector SPDR Fund (XLI). 

Some of the best Thematic ETFs

Thematic ETFs are exchange-traded funds (ETFs) that concentrate on industries, trends, or themes like technology, sustainability, or developing markets. They provide a way to speculate in specific sectors or trends that align with your interests or investment strategy.  

Why Invesco PHLX Semiconductor ETF is one of the best ETFs to buy today?

Best ETF 2024 Semiconductor
While not as large as VanEck Semiconductor ETF or iShares Semiconductor ETF in terms of AUM, SOXQ has a distinct advantage when it comes to cost. With an expense ratio of 0.19%, an investor buying Invesco PHLX Semiconductor ETF can expect to pay around $19 in annual fees for a $10,000 investment, compared to 0.35% or $35, for SMH and SOXX. SOXQ's benchmark, the PHLX Semiconductor Sector Index, is very similar to SOXX and SMH.

Alternatives: Some of the most popular top ETFs for 2024 with exposure to an indispensable component of all modern electronic devices also include the above-mentioned VanEck Semiconductor ETF (SMH) or iShares Semiconductor ETF (SOXX). 

Some of the best dividend ETFs 

This kind of ETF gives investors a way to buy only stocks that pay a dividend. A dividend ETF is usually passively managed, meaning it mechanically tracks an index of dividend-paying firms. This kind of ETF is usually more stable than a total market ETF, and it may be attractive to those looking for investments that produce income, such as retirees. 

The best dividend ETFs tend to offer higher returns and low costs. 

Why S&P 500 Dividend Aristocrats ETF (NOBL) is one of the best ETFs to buy today? 

Best Dividend ETFs

NOBL only selects companies from the S&P 500 that have increased their dividends for at least 25 consecutive years. Holdings are equal-weighted, with sector weights capped at 30%. NOBL’s methodology causes it to overweight traditional dividend-paying sectors. With a concentrated portfolio of at least 40 names, the fund might skew away from market-like exposure. Its methodology substantially limits NOBL's selection universe, and the fund has a pronounced midcap tilt. However, the fund may be less sensitive to market movements than other vanilla funds in the segment. The index is reconstituted annually and rebalanced quarterly. 

  • 1-year performance: 11.76% 
  • 3 years annualized performance: 8.09% 
  • 10 years annualized performance: 12.46% 

Alternatives: Some of the most widely held ETFs here also include S&P 500 Quality High Dividend Index (USD), Vanguard Dividend Appreciation ETF (VIG), Vanguard High Dividend Yield Index ETF (VYM), and Schwab U.S. Dividend Equity ETF (SCHD). 

Top Fix-Income ETFs 

A fixed-income ETF provides exposure to a portfolio of bonds, which are often divided into sub-sectors depending on bond type, issuer, maturity, and other factors, allowing investors to buy exactly the kind of bonds they want. Bonds pay out interest on a schedule, and the ETF passes this income on to holders. 

 

Bond ETFs can be an attractive holding for those needing the safety of regular income, such as retirees. Some of the most popular bond ETF sectors and their returns include: 

Some of the best long-term bond ETFs 

This kind of bond ETF gives exposure to bonds with a long maturity, perhaps as long as 30 years out. Long-term bond ETFs are most exposed to changes in interest rates, so if rates move higher or lower, these ETFs will move inversely to the direction of rates. While these ETFs may pay a higher yield than shorter-term bond ETFs, many don’t see the reward as worthy of the risk. 

Why iShares 20+ Year Treasury Bond ETF (TLT) is one of the best ETFs to buy today?  

Best Long-term bond ETFs
  

While taking a different approach from our benchmark, TLT effectively captures the far end of the Treasury curve in a liquid package. Exclusively holding bonds with 20+ years to maturity, TLT is—by design—very sensitive to long-term interest-rate movements. The fund has a higher duration than our benchmark, which holds bonds in the 10- to 30-year range. The fund changed its underlying index from the Barclays US 20+ Year Treasury Bond Index to the ICE US Treasury 20+ Year Index on March 31, 2016. This change did not alter the fund's exposure in a meaningful way. TLT is a great choice for investors who want long-term Treasury exposure. 

  • 1-year performance: -11.76% 
  • 5 years annualized performance: -3.39% 
  • 10 years annualized performance: 0.56% 

Alternatives: Some of the most widely held ETFs also include iShares MBS ETF (MBB) and Vanguard Mortgage-Backed Securities ETF (VMBS). 

Some of the best short-term bond ETFs 

This kind of bond ETF gives exposure to bonds with a short maturity, typically no more than a few years. These bond ETFs won’t move much in response to changes to interest rates, meaning they’re relatively low risk. These ETFs can be a more attractive option than owning the bonds directly because the fund is highly liquid and more diversified than any individual bond. 

Why iShares 1-3 Year Treasury Bond ETF (SHY) is one of the best ETFs to buy today? 

Best Short-term bond ETFs

SHY is a powerhouse in its segment, a stable, liquid vehicle for buy-and-hold investors and short-term traders alike. In addition, SHY is a well-managed fund that tracks its index tightly and without significant volatility, like most peer ETFs. The fund delivers excellent coverage of the short-term Treasury space as we see it. SHY and our benchmark share the same index, but the fund's optimization strategy—avoiding the index's less liquid components to keep costs down—results in slight performance differences. Still SHY provides excellent exposure to 1-3 year Treasurys. The fund switched its index from the Barclays US Treasury Bond 1-3 Year Term Index to the ICE US Treasury 1-3 Year Bond Index on March 31, 2016. This change effectively maintains the same exposure. Overall SHY is a fine choice for short-dated Treasury exposure.

  • 1-year performance: 2.23% 
  • 3 years annualized performance: 0.91% 
  • 10 years annualized performance: 0.76% 

Alternatives: Some of the most widely held ETFs in this category also include Vanguard Short-Term Bond ETF (BSV) and Vanguard Short-Term Treasury ETF (VGSH). 

Some of the best total bond market ETFs 

This kind of bond ETF gives investors exposure to a wide selection of bonds, diversified by type, issuer, maturity, and region. A total bond market ETF provides a way to gain broad bond exposure without going too heavy in one direction, making it a way to diversify a stock-heavy portfolio. 

Why iShares Core U.S. Aggregate Bond ETF (AGG) is one of the best ETFs to buy today?  

Best Total bond market ETFs
 

AGG’s all-in cost is low and more predictable than its rivals. In a segment where there are a handful of similar funds tracking essentially the same underlying index, holding and trading costs are the driving factors. AGG delivers its underlying index’s returns with precision and consistency. The fund also has a history of massive trading volume and tight spreads. AGG tracks our segment benchmark, providing excellent exposure to the US investment-grade bond market. Note that the fund employs a careful optimization strategy, holding just a fraction of the names in its index, a near-necessity among bond-market ETFs. 

  • 1-year performance: -23.32% 
  • 3 years annualized performance: -9.21% 
  • 10 years annualized performance: 1.08% 

Alternatives: Some of the most widely held ETFs also include Vanguard Total Bond Market ETF (BND) and Vanguard Total International Bond ETF (BNDX). 

Some of the best top-balanced ETFs 

A balanced ETF owns both stock and bonds, and it targets a certain exposure to stock, which is often reflected in its name. These funds allow investors to have the long-term returns of stocks while reducing some of the risks with bonds, which tend to be more stable. A balanced ETF may be more suitable for long-term investors who may be a bit more conservative but need growth in their portfolio. 

Why iShares Core Aggressive Allocation ETF (AOA) is one of the best ETFs to buy today?

AOA is one of four iShares Core target-risk ETFs. It offers an all-encompassing aggressive asset-allocation strategy in a fund-of-funds wrapper. The index invests across asset classes and subgroups using other iShares ETFs. The use of ETFs in the basket allows investors to quickly understand how the fund is positioned. It also keeps the focus on top-down allocation rather than bottom-up security selection. AOA plays it straight with large allocations to vanilla versions of major asset groups: US large- and midcaps, international equities, and broad bonds. The fund also allocates in smaller proportions to emerging market equities, US small-caps, high-yield bonds, REITs, and TIPS. What makes the fund aggressive is its 80% allocation to equities and 20% to fixed income. 

  • 1-year performance: 15.81% 
  • 5 years annualized performance: 5.21% 
  • 10 years annualized performance: 6.70% 

Alternatives: Some of the most widely held balanced ETFs also include iShares Core Growth Allocation ETF (AOR) and iShares Core Moderate Allocation ETF (AOM). 

Some of the best top commodity ETFs 

A commodity ETF gives investors a way to own specific commodities, including agricultural goods, oil, precious metals like Gold and Silver, and others without having to transact in the futures markets. The ETF may own the commodity directly or via futures contracts. Commodities tend to be quite volatile, so they may not be well-suited for all investors. However, these ETFs may allow more advanced investors to diversify their holdings, hedge out exposure to a given commodity in their other investments or make a directional bet on the price of a given commodity. The best-performing gold ETFs tend to offer highly effective portfolio diversification with added defensive stores of value. 

 

Why SPDR Gold Shares (GLD) is one of the best ETFs to buy today?

Best commodity ETFs

GLD is the first market to invest directly in physical gold. The product structure reduced the difficulties of buying, storing, and insuring physical gold bullion for investors. Actively traded, the shares provide deep liquidity. NAV for the fund is determined using the LBMA PM Gold Price (formerly the London PM Gold Fix), so GLD has an extremely close relationship with spot prices. Its structure as a grantor trust protects investors, trustees cannot lend the gold bars. However, taxes on long-term gains can be steep, as GLD is deemed a collectible by the IRS. Also, GLD's NAV has a larger handle, which corresponds to more gold exposure per share. As such, those impacted by per-share trading costs may prefer GLD over similar funds. 

  • 1-year performance: 10.86% 
  • 5 years annualized performance: 8.74% 
  • 10 years annualized performance: 2.89% 

Alternatives: Some of the most widely held commodities ETFs also include iShares Silver Trust (SLV), United States Oil Fund LP (USO), and Invesco DB Agriculture Fund (DBA). 

Some of the best top currency ETFs 

A currency ETF gives investors exposure to a specific currency by simply buying an ETF rather than accessing the foreign exchange (forex) markets. Investors can gain access to some of the world’s most widely traded currencies, including the U.S. Dollar, the Euro, the British Pound, the Swiss Franc, the Japanese Yen, and more. These ETFs are more suitable for advanced investors who may be seeking a way to hedge out exposure to a specific currency in their other investments or to simply make a directional bet on the value of a currency. 

 

Why Currency Shares Euro Trust (FXE) is one of the best ETFs to buy today? 

Best currency ETFs
 

FXE allows investors to access the euro with holdings of physical euros in a deposit account. This simple structure allows the fund to closely track the euro/US dollar spot exchange rate. Still, it is worth noting that: 1) distributions and share sales of FXE are always taxed as ordinary income, so an increase in holding cost should be expected, and 2) the fund's physical deposits of euros are uninsured, so it carries the default risk of its depository, JPMorgan. Additionally, another thing to note about FXE is that it doesn't deliver the overnight lending rate as its benchmark does. 

  • 1-year performance: 9.08% 
  • 5 years annualized performance: -2.36% 
  • 10 years annualized performance: -3.00% 

Alternatives: Some of the most widely held currency ETFs also include Invesco DB US Dollar Index Bullish Fund (UUP) and Invesco Currency Shares Swiss Franc Trust (FXF). 

Some of the best top real estate ETFs (REIT ETFs) 

Real estate ETFs usually focus on holding stocks classified as REITs, or real estate investment trusts. REITs are a convenient way to own an interest in companies that own and manage real estate, and REITs operate in many sectors of the market, including residential, commercial, industrial, lodging, cell towers, medical buildings, and more. REITs typically pay out substantial dividends, which are then passed on to the holders of the ETF. These pay-outs make REITs and REIT ETFs particularly popular among those who need income, especially retirees. The best ETF REITs maximize dividend yields, as dividends are the main reason for investing in them. 

Why Vanguard Real Estate ETF (VNQ) is one of the best ETFs to buy today?

Best real estate ETFs (REIT ETFs)

VNQ tracks a broad index that captures much of the US real estate market. The fund holds a deep basket and its market-cap allocations mirror those of our neutral benchmark. The only place it deviates is the persistent sector bias away from specialized REITs in favor of commercial REITs. As a result of excellent portfolio management, at times, the cost of owning VNQ has even been lower than its stated expense ratio. 

  • 1-year performance: -0.22% 
  • 5 years annualized performance: 2.40% 
  • 10 years annualized performance: 5.37% 

Alternatives: Some of the most widely held real estate ETFs also include iShares U.S. Real Estate ETF (IYR) and Schwab U.S. REIT ETF (SCHH). 

 

Some of the best top-leveraged ETFs 

A leveraged ETF goes up in value more rapidly than the index it’s tracking, and a leveraged ETF may target a gain that’s two or even three times higher than the daily return on its index. For example, a triple-leveraged ETF based on the S&P 500 should rise 3 percent on a day the index rises 1 percent. A double-leveraged ETF would target a double return, as leverage magnifies both profits and losses. Because of how leveraged ETFs are structured, they’re best suited for traders looking for short-term returns on the target index over a few days, rather than long-term investors

 

Why ProShares UltraPro QQQ (TQQQ) is one of the best ETFs to buy today?

Best leveraged ETFs

TQQQ is a levered fund that delivers 3x exposure only over a one-day holding period of NASDAQ-100 stocks. The underlying index includes 100 of the largest non-financial companies listed on NASDAQ based on market capitalization. Historically, technology companies have dominated TQQQ’s underlying index, so, its future performance might be closely tied to the performance of the tech industry. The fund uses a mathematical approach to determine the type, quantity, and mix of investment positions that it believes will produce daily returns consistent with its investment objective. Like many levered products, the fund is not a buy-and-hold ETF as it's a very short-term tactical instrument. 

  • 1-year performance: 77.97% 
  • 5 years annualized performance: 15.37% 
  • 10 years annualized performance: 34.40% 

Alternatives: Some of the most widely held leveraged ETFs also include ProShares Ultra QQQ (QLD), Direxion Daily Semiconductor Bull 3x Shares (SOXL), and ProShares Ultra S&P 500 (SSO). 

Some of the best top inverse ETFs 

Inverse ETFs go up in value when the market declines, and they allow investors to buy one fund that inversely tracks a specific index such as the S&P 500 or Nasdaq 100. These ETFs may target the exact inverse performance of the index, or they may try to offer two or three times the performance, like a leveraged ETF. For example, if the S&P 500 fell 2 percent in a day, a triple inverse should rise about 6 percent that day. Because of how they’re structured, inverse ETFs are best suited for traders looking to capitalize on short-term declines in an index. 

 

Why ProShares UltraPro Short QQQ (SQQQ) is one of the best ETFs to buy today?  

Best inverse ETFs
 

SQQQ is an aggressive take on the large-cap space by providing geared inverse (-3x) exposure to the NASDAQ-100 index — an index of 100 tech-heavy firms listed on NASDAQ that excludes financials. To provide this exposure, the fund uses swaps on the popular NASDAQ-100 ETF (QQQ), swaps on the index itself, and futures. As with most inverse and leveraged products, SQQQ is designed to provide this exposure on a daily basis, not over long time horizons. Holding the fund for longer than a day opens the door to the effects of compounding on returns and will be unlikely to realize the stated -3x inverse exposure over time, especially in volatile markets. 

  • 1-year performance: -63.47% 
  • 5 years annualized performance: -54.43% 
  • 10 years annualized performance: -51.77% 

Alternatives: Some of the most widely held inverse ETFs also include ProShares Short S&P 500 ETF (SH) and ProShares UltraShort S&P 500 (SDS). 

Some of the best top cryptocurrency ETFs 

Cryptocurrency is a newcomer to the world of exchange-traded funds (ETFs). Crypto ETFs allow investors to get exposure to the enticing potential of crypto assets without having to directly own them or safely store them. 

A cryptocurrency's value can change constantly and dramatically. An investment that may be worth thousands of dollars today could be worth only hundreds tomorrow. If the value goes down, there's no guarantee that it will rise again. 

 

Currently, crypto ETFs can only hold crypto futures contracts or stocks of companies with exposure to cryptocurrency. The Security and Exchange Commission (SEC) continues to evaluate whether it will ultimately approve ETFs that own crypto directly. 

Why Proshares Bitcoin ETF (BITO) is one of the best ETFs to buy today? 

Best Cryptocurrency ETFs

The first Bitcoin ETF provides exposure to bitcoin returns in an ETF wrapper. BITO does not invest directly in bitcoin. The fund will invest in cash-settled, front-month bitcoin futures, traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC), such as the CME Futures Exchange. The value of bitcoin futures is determined by the CME Group and Crypto Facilities Bitcoin Reference Rate (CME CF BRR), which aggregates bitcoin trading activity across major global bitcoin spot trading venues during a one-hour window. The one-hour window is divided equally into twelve 5-minute segments. Each segment has a volume-weighted median (VWM). The BRR value is expressed as the arithmetic mean of the 12 VWMs. Prices are usually determined at 4:00 p.m. (London Time). The fund itself gains exposure through a wholly-owned Cayman Island subsidiary. 

  • 1-year performance: 35.84%

 

Alternatives: Some of the most widely held cryptocurrency ETFs also include VanEck Bitcoin Strategy ETF (XBTF), Global X Blockchain & Bitcoin Strategy ETF (BITS), and ProShares Short Bitcoin ETF (BITI). 

Are these the best ETFs to invest in for 2024? 

Not necessarily. These are some of the best ETFs to watch in 2023 based on analyst coverage, expense ratio, and volume (assets they own). But that doesn't mean that they're the best ETFs to invest in for 2023 and beyond. Predicting the future of even the current top-performing ETFs is a job even the pros haven’t yet mastered. And the best ETFs to buy for your portfolio aren’t necessarily the best ETFs for someone else’s portfolio.  

Dow Jones Forecast & Price PredictionNikkei Forecast & Price PredictionEURUSD forecast and price prediction
Gold forecast and price predictionOil forecast and price predictionBritish pound forecast and price prediction
Silver forecast and price predictionNatural Gas forecast and price predictionTurkish Lira forecast and price prediction

These top ETFs may go up during 2024 or for a while (or not) but doing at least some basic personal research allows you to confidently judge whether to invest, when to invest, and how much. Inevitably, even the best ETFs go down sometimes, so you’ll need your knowledge to decide whether to stick with the fund or sell.

For example, if you invest only in the best–performing ETFs in the past quarter or year – without understanding the company, the industry, and its competitive situation – you’re likely to wind up buying high and selling low. You’ll tend to chase whatever is hot now, but then sell once it cools off. 

Trade and invest in ETFs with CAPEX.com  

Investing and trading are both ways to get exposure to the best ETFs of 2023. Even though both offer the potential to benefit from the financial markets, they differ fundamentally.  

Invest    

Investing means that you will own the physical shares of ETFs until you decide to sell them. When investing, you need to commit to the full value of the investment upfront. If your shares are worth more when you sell them than when you bought them, you’ll make a profit. But, if the price has declined, you’ll incur a loss. While the profit potential is technically unlimited, your losses are capped at your full initial outlay.  

You might want to invest in some of the best ETFs of 2024 if:   

  • You’re interested in buying and selling assets (stocks and ETFs)  
  • You’re focused on longer-term growth  
  • You want to build a diversified portfolio  
  • You want to take ownership of the underlying asset  
  • You want to gain voting rights and dividends (if paid)  

  

Trade  

Trading, on the other hand, enables you to predict share price movements without owning the underlying asset – and you can go long or short. This means that you can speculate on rising as well as falling prices. You also don’t need all the capital upfront, as you’ll trade using leverage. All you need to open a position is a small deposit called a margin. Keep in mind that leverage magnifies both potential profits and possible losses. This makes it vital that you manage your risk properly.  

Do you want to practice trading? Open a CAPEX.com demo account to trade in a risk-free environment.  

You might want to trade some of the best ETFs of 2024 if:   

  • You are interested in speculating on the underlying price of the assets (stocks, ETFs, commodities, bonds, currencies, cryptocurrencies)  
  • You want to trade rising and falling markets – going long and short   
  • You want to leverage your exposure   
  • You want to take shorter-term positions   
  • You want to hedge your portfolio   
  • You want to trade without owning the underlying asset  

 

Free resources  

Before you start investing in the best ETFs for your portfolio, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you become a better trader or make more informed investment decisions.  

Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading. 

Sources:

FAQs about the best ETF

The information presented herein is prepared by CAPEX.com/eu and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Cristian Cochintu
Cristian Cochintu
Financial Writer

Cristian Cochintu writes about trading and investing for CAPEX.com. Cristian has more than 15 years of brokerage, freelance, and in-house experience writing for financial institutions and coaching financial writers.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.