Best ETF Portfolio of the year (2024)

FAQs

What is the best ETF to have in your portfolio? ›

And there's one ETF that specializes in those stocks. That's the Invesco S&P 500 GARP ETF (NYSEMKT: SPGP), which has beaten the S&P 500 in seven of the last 10 years and has steadily outperformed it over the last decade, as you can see from the chart below.

One option for a solid three-ETF portfolio could be to include the Schwab U.S. Dividend Equity ETF (SCHD), the Vanguard S&P 500 ETF (VOO), and the Invesco QQQ Trust (QQQ). The SCHD ETF focuses on high-quality dividend stocks, which can provide stable income and potential long-term growth.

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%.

Properties of a good portfolio

Diversification: A well-diversified portfolio should include ETFs that cover different asset classes (stocks, bonds, commodities, etc.), sectors, industries, and geographical regions. This spreads risk and reduces the impact of any single investment on the overall performance.

The Direxion Daily S&P 500^® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500^® Index.

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

Which ETF has the highest yield? ›

Average Return. In the past year, QQQ returned a total of 31.29%, which is higher than VOO's 27.22% return. Over the past 10 years, QQQ has had annualized average returns of 18.44% , compared to 12.65% for VOO. These numbers are adjusted for stock splits and include dividends.

This is commonly referred to as The 4% Rule. The Trinity Study found that you can 'safely' sell off 4% of your total ETF investments once each year, and they 'should' last the next 30 years before you run out.

Specifically, a fund is prohibited from: acquiring more than 3% of a registered investment company's shares (the “3% Limit”); investing more than 5% of its assets in a single registered investment company (the “5% Limit”); or. investing more than 10% of its assets in registered investment companies (the “10% Limit”).

Tax-loss harvesting can be a great strategy to lower tax exposure but traders must be sure to avoid wash sales. You can't replace a security that you've sold at a loss by purchasing one that's substantially identical from 30 days before the sale until 30 days after it's complete.

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

ETFs can be a great investment for long-term investors and those with shorter-term time horizons. They can be especially valuable to beginning investors. That's because they won't require the time, effort, and experience needed to research individual stocks.

Average Return. In the past year, QQQ returned a total of 31.29%, which is higher than VOO's 27.22% return. Over the past 10 years, QQQ has had annualized average returns of 18.44% , compared to 12.65% for VOO. These numbers are adjusted for stock splits and include dividends.