Choosing the right ETF | BlackRock (2024)

This website contains information intended only for financial intermediaries acting as agents on behalf of non-U.S. Persons within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). By accessing the website, you certify that you are a financial intermediary acting as an agent on behalf of a non-U.S. Person, that you are not seeking to purchase an investment product for the account or benefit of a U.S. Person and that you shall only distribute the materials contained in this website to non-U.S. Persons, and in compliance with all applicable laws and regulations of the relevant jurisdiction in which such materials will be distributed. Investment products described on the website may not be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction and may not be offered, sold, pledged or otherwise transferred except to persons outside the U.S. in accordance with Regulation S under the Securities Act pursuant to the terms of such investment product. For purposes of this verification, “U.S. Person” includes, but is not limited to, any natural person resident in the U.S. and any partnership or corporation organized or incorporated under the laws of the U.S.

On this website,financial intermediariesare investors that qualify as institutional investors, qualified investor, or professional investors in their respective jurisdiction of residence (as such term is defined by the applicable regulations in such relevant jurisdiction), acting as agents on behalf of non-U.S. Persons.

If you are uncertain as to whether you can be classified as an institutional, professional or qualified investor under the applicable rules of your jurisdiction of residence, then you should seek independent advice.

Termsandconditions

Please read this page before proceeding, as it explains certain restrictions imposed by law on the distribution of this information and the countries in which our funds are authorized for sale. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction.

Please note that you are required to read and accept the terms of ourPrivacy Policybefore you are able to access our websites.

Once you have confirmed that you agree to the legal information in this document, and thePrivacy Policy– by indicating your consent above – we will place a cookie on your computer to recognize you and prevent this page reappearing should you access this site, or other BlackRock sites, on future occasions. The cookie will expire after six months, or sooner should there be a material change to this important information.

“BlackRock”, “we”, “us” or “our” means BlackRock, Inc., and each of the direct or indirect subsidiaries of BlackRock, Inc.

By confirming that you have read this important information, you are also:
(i) Agree that such information will apply to any subsequent access to all the sections of this website by you, and that all such subsequent access will be subject to the disclaimers, risk warnings and other information set out herein; and
(ii) Warrant that no other person will access this website from the same computer and logon as you are currently using.

The funds described in the following pages can be marketed in certain jurisdictions only. It is your responsibility to be aware of the applicable laws and regulations of your country of residence. Further information is available in the relevant fund’s offering documents.

This does not constitute an offer or solicitation to sell shares in any of the funds referred to on this website, by anyone in any jurisdiction in which such offer, solicitation or distribution would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to anyone to whom it is unlawful to make such offer or solicitation.

As a result of money laundering regulations, additional documentation for identification purposes may be required when investing in a fund referred to on this website. Details are contained in the relevant fund’s offering documents.

If you are unsure about the meaning of any information provided, please consult your financial or other professional adviser.

The information contained on this website is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock shall have no liability for any loss or damage arising out of the use or reliance on the information provided including without limitation, any loss of profit or any other damage, direct or consequential. No information on this website constitutes investment, tax, legal or any other advice.

Where a claim is brought against BlackRock by a third party in relation to your use of this website, you hereby agree to fully reimburse BlackRock for all losses, costs, actions, proceedings, claims, damages, expenses (including reasonable legal costs and expenses), or liabilities, whatsoever suffered, or incurred directly by, BlackRock resulting from your improper use of this website. Neither party should be liable to the other for any loss or damage which may be suffered by the other party due to any cause beyond the first party's reasonable control including without limitation any power failure.

You may leave this website when you access certain links on this website. BlackRock has not examined any of third-party websites and does not assume any responsibility for the contents of such websites nor the services, products or items offered through such websites.

The information contained on this website is subject to copyright with all rights reserved. It must not be reproduced, copied or redistributed in whole, or in part.

©2022 BlackRock, Inc. All Rights Reserved.BLACKROCKandiSHARESare registered trademarks of BlackRock, Inc. All other trademarks are those of their respective owners.

Choosing the right ETF | BlackRock (2024)

FAQs

How do I choose the right ETF? ›

Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.

How do you tell if an ETF is a good investment? ›

Ultimately, investors choosing an ETF need to ask 3 questions: What exposure does this ETF have? How well does the ETF deliver this exposure? And how efficiently can I access the ETF? Look at the ETF's underlying index (benchmark) to determine the exposure you're getting.

How do you assess a good ETF? ›

Since the job of most ETFs is to track an index, we can assess an ETF's efficiency by weighing the fee rate the fund charges against how well it “tracks”—or replicates the performance of—its index. ETFs that charge low fees and track their indexes tightly are highly efficient and do their job well.

How many ETFs should I own as a beginner? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

What is the number 1 ETF to buy? ›

7 Best ETFs to Buy Now
ETFAssets Under Management*Year-to-Date Performance*
Global X Copper Miners ETF (COPX)$2.3 billion23.1%
abrdn Physical Silver Shares ETF (SIVR)$1.2 billion25.3%
First Trust RBA American Industrial Renaissance ETF (AIRR)$900 million21.1%
Invesco S&P MidCap Momentum ETF (XMMO)$2.1 billion26.1%
3 more rows
Jun 5, 2024

Is Voo better than Spy? ›

VOO typically provides a higher dividend yield compared to SPY. This aspect is particularly attractive to investors who prioritize income generation from their investments.

How do I know if my ETF is overpriced? ›

Compare the market price to the NAV to determine if the ETF is trading at a premium or discount to its NAV. If the market price is higher than the NAV, the ETF is trading at a premium. If the NAV is lower than the price, the ETF is trading at a discount.

How much of your money should be in ETFs? ›

You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all. Consider the two funds below.

Which ETF gives the highest return? ›

Performance of ETFs
SchemesLatest PriceReturns in % (as on Jun 27, 2024)
CPSE Exchange Traded Fund92.68114.91
Kotak PSU Bank ETF729.8084.9
Nippon ETF PSU Bank BeES81.3984.8
SBI - ETF Nifty Next 50750.0166.2
32 more rows

Which ETF is best? ›

Overview of 15 Best ETFs in India
  • Nippon India ETF Nifty 50 BeES. ...
  • Nippon India ETF PSU Bank BeES. ...
  • ICICI Prudential Mutual Fund - BHARAT 22 ETF. ...
  • Mirae Asset NYSE FANG+ ETF. ...
  • UTI S&P BSE Sensex ETF. ...
  • Nippon India ETF Gold BeES. ...
  • Nippon India Etf Nifty Bank Bees. ...
  • HDFC Nifty50 Value 20 ETF.
Mar 27, 2024

What should be my first ETF? ›

ETFs for beginners

One way for beginner investors to get started is to buy ETFs that track broad market indexes, such as the S&P 500. In doing so, you're investing in some of the largest companies in the country, with the goal of long-term returns.

How do I choose an S&P ETF? ›

Other Factors in Choosing an S&P 500 Index ETF

The first is its liquidity. While S&P 500 ETFs would be considered very liquid by their nature, some might have more daily trading volume and tighter bid-ask spreads than others. A second consideration would be the index's tracking error.

How to choose the right ETF? ›

Given the number of ETF choices that investors have, it's important to consider the following factors:
  1. Level of Assets: An ETF should have a minimum level of assets, with a common threshold being at least $10 million. ...
  2. Trading Activity: Trading volume is an excellent indicator of liquidity, regardless of the asset class.

Can you retire a millionaire with ETFs alone? ›

Investing in the stock market is one of the most effective ways to generate long-term wealth, and you don't need to be an experienced investor to make a lot of money. In fact, it's possible to retire a millionaire with next to no effort through exchange-traded funds (ETFs).

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

What order type should I use to buy ETFs? ›

Market orders are the simplest and represent the default order at most brokerages. It is simply an order to buy or sell an ETF at the best available price in the market at that moment. Pro: You can buy or sell as quickly as possible, because market orders prioritize speed of execution.

How do I choose an ETF or index fund? ›

Typically, it comes down to preferences related to management fees, shareholder transaction costs, taxation, and other qualitative differences. Despite the lower expense ratios and tax advantages of ETFs, many retail investors (non-professional, individual investors) prefer index mutual funds.

Does it matter on which stock exchange you buy ETF? ›

Brokers may charge you different fees depending on the stock exchange. For example, they may charge lower fees for local exchanges. You should choose the exchange that charges the lowest fees because this has a direct impact in your returns.

How to invest in ETFs beginner guide? ›

Here's how to find and buy ETFs in just a few steps.
  1. Open a brokerage account. You'll need a brokerage account to buy and sell securities like ETFs. ...
  2. Find and compare ETFs with screening tools. Now that you have your brokerage account, it's time to decide which ETFs to buy. ...
  3. Place the trade. ...
  4. Sit back and relax.
Jun 12, 2024

Top Articles
Latest Posts
Article information

Author: Greg O'Connell

Last Updated:

Views: 5777

Rating: 4.1 / 5 (42 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Greg O'Connell

Birthday: 1992-01-10

Address: Suite 517 2436 Jefferey Pass, Shanitaside, UT 27519

Phone: +2614651609714

Job: Education Developer

Hobby: Cooking, Gambling, Pottery, Shooting, Baseball, Singing, Snowboarding

Introduction: My name is Greg O'Connell, I am a delightful, colorful, talented, kind, lively, modern, tender person who loves writing and wants to share my knowledge and understanding with you.