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In this article, we discuss 15 best ETFs to buy now. If you want to skip our discussion on the stock market and ETF performance, head over to 5 Best ETFs To Buy Now.
In 2023, US-listed ETF trading declined by 17% to $38 trillion due to record-high interest rates, with money market fund assets reaching an all-time high of $5.9 trillion. However, it was still the second-highest year for ETF volumes on record. iShares ETFs, led by iShares Russell 2000 ETF (NYSE Arca: IWM), iShares iBoxx $ High Yield Corporate Bond ETF (NYSE Arca: HYG), and iShares 20+ Year Treasury Bond ETF (NASDAQ GM: TLT), represented $9.4 trillion of this activity. US equity markets traded nearly $127 trillion, making the US ETFs account for 30% of the total American composite volume in the secondary market in 2023. Meanwhile, US-listed Fixed Income ETFs had their second-largest year on record at $5.8 trillion, slightly behind the 2022 figures. Also, options trading in the US-listed ETFs reached record levels in 2023, with the industry totaling $130 trillion, up 24% year-over-year.
The ETF industry set a new record with 543 new ETFs launched in 2023, surpassing the previous record of just under 480 in 2021 by more than 60 funds. Approximately 75% of the newly launched funds in 2023 were actively managed. According to VettaFi’s Dave Nadig:
“It was only a few years ago when we crossed 2,000 ETFs listed that the first ‘there are too many ETFs!’ complaints started up, and yet here we are. But the reality is there’s no cap on innovation. The products we’ve seen gain traction this year — the rise of active products, the narrow slices of the market, options overlays, buffers, conversions — they weren’t really even a pipe dream five years ago, and they’re the stories of the year. ETFs have gained so much ground because they solve real problems for real investors.”
Lately, retail traders are increasingly utilizing exchange traded funds as a new tool during the recent Bitcoin rally. Newly launched funds, such as the iShares Bitcoin Trust (NASDAQ GM: IBIT), Fidelity Wise Origin Bitcoin Fund (CBOE US: FBTC), and ARK 21Shares Bitcoin ETF (CBOE US: ARKB) have experienced a surge in trading volume. For instance, IBIT traded about 96 million shares on February 28, more than double its previous record, indicating significant retail interest. The Fidelity and ARK funds also saw substantial increases in shares traded, surpassing earlier records. The active market suggests that retail traders are leveraging these ETFs to participate in the Bitcoin rally, with the cryptocurrency crossing $60,000 for the first time since November 2021. Despite Bitcoin's 30% rise since the ETFs were approved, their prices have consistently increased over the past six weeks, contributing to the notable trading volumes.
Some of the best ETFs expose investors to stocks like Costco Wholesale Corporation (NASDAQ:COST), Eli Lilly and Company (NYSE:LLY), and NVIDIA Corporation (NASDAQ:NVDA).
Our Methodology
We curated our list of the best ETFs by choosing consensus picks from multiple credible websites. We have mentioned the 5-year share price performance of each ETF as of March 9, 2024, ranking the list in ascending order of the share price. We have also discussed the top holdings of the ETFs to offer better insight to potential investors.
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Best ETFs To Buy Now
15. Energy Select Sector SPDR Fund (NYSE Arca: XLE)
5-year Share Price Performance as of March 9, 2024: 34.59%
Energy Select Sector SPDR Fund (NYSE Arca: XLE) aims to replicate the performance of the Energy Select Sector Index. This index is designed to accurately represent the energy sector within the S&P 500 Index, focusing on companies in the oil, gas, consumable fuel, and energy equipment and services industries. Established in December 1998, Energy Select Sector SPDR Fund (NYSE Arca: XLE) has an expense ratio of 0.09% as of March 7, 2024, and its portfolio consists of 23 stocks. It is one of the best ETFs to buy.
Exxon Mobil Corporation (NYSE:XOM) is the largest holding of the Energy Select Sector SPDR Fund (NYSE Arca: XLE). On February 2, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.95 per share, in line with previous. The dividend is payable on March 11, to shareholders on record as of February 14.
According to Insider Monkey’s fourth quarter database, 85 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), compared to 79 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 13.2 million shares worth $1.3 billion.
In addition to Costco Wholesale Corporation (NASDAQ:COST), Eli Lilly and Company (NYSE:LLY), and NVIDIA Corporation (NASDAQ:NVDA), Exxon Mobil Corporation (NYSE:XOM) is one of the stocks favored by elite hedge funds.
Here is what First Eagle Investments had to say about Exxon Mobil Corporation (NYSE:XOM) in its second-quarter 2022 investor letter:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
14. iShares Core S&P Small-Cap ETF (NYSE Arca: IJR)
5-year Share Price Performance as of March 9, 2024: 38.53%
iShares Core S&P Small-Cap ETF (NYSE Arca: IJR) aims to replicate the performance of the S&P SmallCap 600 Index, which represents small-cap U.S. equities. As of March 8, 2024, the ETF holds net assets totaling $88 billion and holds a portfolio consisting of 689 stocks, with an expense ratio of 0.06%. iShares Core S&P Small-Cap ETF (NYSE Arca: IJR) is one of the best ETFs to invest in.
Fabrinet (NYSE:FN) is one of the largest holdings of the iShares Core S&P Small-Cap ETF (NYSE Arca: IJR). Fabrinet (NYSE:FN) is a global company providing optical packaging, precision optical, electro-mechanical, and electronic manufacturing services across North America, the Asia Pacific, and Europe. On February 5, Fabrinet (NYSE:FN) reported its financial results for the December quarter. The company posted a non-GAAP EPS of $2.08 and a revenue of $712.7 million, outperforming Wall Street estimates by $0.05 and $17.31 million, respectively.
According to Insider Monkey’s fourth quarter database, Fabrinet (NYSE:FN) was part of 24 hedge fund portfolios, compared to 30 in the prior quarter.
FPA Queens Road Small Cap Value Fund stated the following regarding Fabrinet (NYSE:FN) in its fourth quarter 2023 investor letter:
“Fabrinet (NYSE:FN) is a contract manufacturer of optical communications modules and components. The company has a dominant position in hard-to-replicate precision-manufacturing technologies and an enviable track record of execution. The majority of Fabrinet’s sales are to optical communications equipment manufacturers, but it has been successfully diversifying into the data center, industrial, auto, and medical end-markets. FN’s stock jumped after reporting June 2023 earnings – data center sales increased 50% sequentially and more than 100% over the previous year, driven by their 800-gigabyte transceivers for Artificial Intelligence applications. The company also announced that Nvidia is a 10%+ customer.
13. Schwab U.S. Dividend Equity ETF (NYSE Arca: SCHD)
5-year Share Price Performance as of March 9, 2024: 50.05%
Schwab U.S. Dividend Equity ETF (NYSE Arca: SCHD) aims to closely replicate the total return of the Dow Jones U.S. Dividend 100 Index before fees and expenses. Schwab U.S. Dividend Equity ETF (NYSE Arca: SCHD) invests in stocks chosen for their fundamental strength compared to peers, assessed through financial ratios. Established on October 20, 2010, the ETF has net assets totaling $54.2 billion as of March 8, 2024, with an expense ratio of 0.060%.
Broadcom Inc. (NASDAQ:AVGO) is the largest holding of Schwab U.S. Dividend Equity ETF (NYSE Arca: SCHD). On March 7, Broadcom Inc. (NASDAQ:AVGO) reported a Q1 non-GAAP EPS of $10.99 and a revenue of $11.96 billion, outperforming Wall Street estimates by $0.57 and $240 million, respectively.
According to Insider Monkey’s fourth quarter database, 91 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), compared to 87 funds in the prior quarter.
Aristotle Atlantic Core Equity Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its fourth quarter 2023 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) contributed to portfolio outperformance during the quarter, as the company reported fourth quarter results which continued to show strength in its AI business segments. With the VMware acquisition having closed at the end of November, the company also provided positive fiscal year 2024 guidance on its earnings call that included synergy target goals ahead of schedule and a more positive revenue ramp for the combined businesses.”
12. Financial Select Sector SPDR Fund (NYSE Arca: XLF)
5-year Share Price Performance as of March 9, 2024: 52.53%
Financial Select Sector SPDR Fund (NYSE Arca: XLF) aims to replicate the price and yield performance of the Financial Select Sector Index. This index effectively represents the financial sector of the S&P 500 Index and provides exposure to companies in financial services, insurance, banks, capital markets, mortgage REITs, and consumer finance. Established in December 1998, the ETF has an expense ratio of 0.09% as of March 9, 2024, and offers a portfolio of 72 stocks. Financial Select Sector SPDR Fund (NYSE Arca: XLF) is one of the best ETFs to buy.
Berkshire Hathaway Inc. (NYSE:BRK-B) is the largest holding of the Financial Select Sector SPDR Fund (NYSE Arca: XLF). Berkshire is a global conglomerate involved in insurance, freight rail transportation, and utilities. On February 24, Berkshire Hathaway Inc. (NYSE:BRK-B) reported a Q4 EPS of $3.92 and a revenue of $93.38 billion, exceeding Wall Street estimates by $0.12 and $12.69 billion, respectively.
According to Insider Monkey’s fourth quarter database, 117 hedge funds were long Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 116 funds in the last quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with nearly 20 million shares worth $7.10 billion.
Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q3 2022 investor letter:
“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”
11. iShares Core Dividend Growth ETF (NYSE Arca: DGRO)
5-year Share Price Performance as of March 9, 2024: 53.66%
iShares Core Dividend Growth ETF (NYSE Arca: DGRO) aims to replicate the performance of the Morningstar US Dividend Growth Index, which is composed of US equities with a track record of consistent dividend growth. Launched on June 10, 2014, the ETF has accumulated net assets of $26.5 billion as of March 8, 2024. iShares Core Dividend Growth ETF (NYSE Arca: DGRO)’s portfolio comprises 420 stocks and the fund offers an expense ratio of 0.08%. iShares Core Dividend Growth ETF (NYSE Arca: DGRO) is one of the best ETFs to invest in.
JPMorgan Chase & Co. (NYSE:JPM) is a prominent holding of the iShares Core Dividend Growth ETF (NYSE Arca: DGRO). On January 12, JPMorgan Chase & Co. (NYSE:JPM) reported a Q4 non-GAAP EPS of $3.97, outperforming Street estimates by $0.37. However, the revenue of $38.57 billion fell short of market consensus by $1.21 billion.
According to Insider Monkey’s fourth quarter database, 103 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), compared to 109 funds in the prior quarter.
Madison Sustainable Equity Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:
“We updated the sustainable scorecard for JPMorgan Chase & Co. (NYSE:JPM). JP Morgan continues to have an Average rating across Governance, Social and Environmental factors. JP Morgan is using its business to improve climate change. JP Morgan has targeted $2.5 trillion in financing between 2021 and 2030 to advance long-term solutions to address climate change and sustainable development. The Board has oversight of corporate responsibility and ESG matters, but ESG and Sustainability are addressed across the firm. JPM does listen to shareholders. After a 31% For Vote on executive compensation in 2022, the Board will not be granting any special awards to Jamie Dimon or Daniel Pinto and if awarded to other Named Executive Officers, there will be a direct performance condition associated with the award. The Compensation Committee limited the cash percentage of Dimon and Pinto’s compensation.”
10. Industrial Select Sector SPDR Fund (NYSE Arca: XLI)
5-year Share Price Performance as of March 9, 2024: 65.29%
Industrial Select Sector SPDR Fund (NYSE Arca: XLI) aims to replicate the price and yield performance of the Industrial Select Sector Index. This index effectively represents the industrial sector of the S&P 500 Index, offering exposure to different industries including aerospace and defense, industrial conglomerates, transportation, machinery, logistics, and more. Industrial Select Sector SPDR Fund (NYSE Arca: XLI) has an expense ratio of 0.09% as of March 9, 2024, and holds a portfolio of 78 stocks. Industrial Select Sector SPDR Fund (NYSE Arca: XLI) is one of the best ETFs to buy.
General Electric Company (NYSE:GE) is the largest holding of the Industrial Select Sector SPDR Fund (NYSE Arca: XLI). On January 23, General Electric Company (NYSE:GE) reported a Q4 non-GAAP EPS of $1.03 and a revenue of $19.4 billion, topping Wall Street estimates by $0.13 and $1.85 billion, respectively.
According to Insider Monkey’s fourth quarter database, 92 hedge funds held stakes in General Electric Company (NYSE:GE), up from 76 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 41.65 million shares worth $5.3 billion.
Longleaf Partners Fund stated the following regarding General Electric Company (NYSE:GE) in its fourth quarter 2023 investor letter:
“General Electric Company (NYSE:GE) – Industrial conglomerate General Electric (GE) was the top performer for the year. We exited this multi-year investment as its price went above our appraisal. In 1Q23, GE spun out GE Healthcare, which we sold as it traded at our value. The share price continued its strong performance throughout the spring and summer, and we ultimately sold the position in the third quarter when we no longer saw a margin of safety for the business. CEO Larry Culp was a great partner who created significant value for shareholders by reducing leverage, cutting costs, streamlining operations, improving company culture and simplifying the structure with plans to split the company into three businesses. We hope to have the opportunity to partner with him again in the future.”
9. Vanguard U.S. Quality Factor ETF ETF Shares (CBOE US: VFQY)
5-year Share Price Performance as of March 9, 2024: 68.46%
Vanguard U.S. Quality Factor ETF ETF Shares (CBOE US: VFQY) ranks 9th on our list of the best ETFs to buy. Vanguard U.S. Quality Factor ETF ETF Shares (CBOE US: VFQY) employs a rules-based quantitative model to assess US common stocks, investing in those with robust fundamentals through an actively managed portfolio. The fund's holdings include a diverse mix of stocks across different market capitalizations, sectors, and industries. Emphasizing strong profitability and healthy balance sheets, the ETF aims for long-term capital appreciation. Vanguard U.S. Quality Factor ETF ETF Shares (CBOE US: VFQY) features an expense ratio of 0.13% and a portfolio comprising 396 stocks. It is one of the best ETFs to buy.
Vanguard U.S. Quality Factor ETF ETF Shares (CBOE US: VFQY)’s top holding is Bristol-Myers Squibb Company (NYSE:BMY), an American manufacturer and distributor of biopharmaceutical products worldwide. On March 1, Bristol-Myers Squibb Company (NYSE:BMY) declared a quarterly dividend of $0.60 per share, in line with previous. The dividend is payable on May 1, to shareholders on record as of April 5.
According to Insider Monkey’s fourth quarter database, 60 hedge funds were bullish on Bristol-Myers Squibb Company (NYSE:BMY), compared to 65 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 8.90 million shares worth $456.85 million.
Aristotle Atlantic Core Equity Strategy stated the following regarding Bristol-Myers Squibb Company (NYSE:BMY) in its fourth quarter 2023 investor letter:
“We sold our position in Bristol-Myers Squibb Company (NYSE:BMY), following the third quarter earnings report where the company reduced the medium-term guidance on the new product portfolio and lowered its 2025 target. Given the large amount of revenue associated with drugs going off-patent, the new product portfolio was key to the company’s ability to change investor perception. Certain launches are not performing as expected, and others are taking longer to scale. Additionally, Bristol-Myers reduced medium-term operating margin guidance to invest in its commercial drugs and the research and development (R&D) pipeline. We do not believe that the company exhibited the level of defensiveness in the strategy we expected given the low valuation.”
8. Vanguard S&P 500 ETF (NYSE Arca: VOO)
5-year Share Price Performance as of March 9, 2024: 81.02%
Vanguard S&P 500 ETF (NYSE Arca: VOO) invests in stocks from the S&P 500 Index. Its primary objective is to closely mirror the index's return, serving as an indicator for overall US stock performance. Vanguard S&P 500 ETF (NYSE Arca: VOO) is designed for long-term goals where capital appreciation is needed. As of March 9, 2024, the ETF offers an expense ratio of 0.03% and holds net assets of $1 trillion. Vanguard S&P 500 ETF (NYSE Arca: VOO) is one of the best ETFs to invest in.
Microsoft Corporation (NASDAQ:MSFT) is the largest holding of Vanguard S&P 500 ETF (NYSE Arca: VOO). On January 30, the company reported its financial results for the December quarter. The GAAP EPS of $2.93 and revenue of $62.02 billion outperformed Wall Street estimates by $0.16 and $890 million, respectively.
According to Insider Monkey’s fourth quarter database, 302 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 306 funds in the last quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company.
Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices. Gaming, and Search). During the quarter, the company reported strong fiscal first quarter results, where revenues and earnings beat analyst estimates, driven in large part to growing Al demand. Regarding Intelligent Cloud segment, management noted Azure optimizations were similar to the previous quarter, but new Al and traditional workloads are helping drive greater consumption growth, which resulted in their first reacceleration since March 2022. We believe the strong Azure performance suggests diminishing cost optimization headwinds and growing strength in Al service consumption.”
7. SPDR S&P 500 ETF Trust (NYSE Arca: SPY)
5-year Share Price Performance as of March 9, 2024: 81.91%
SPDR S&P 500 ETF Trust (NYSE Arca: SPY) aims to mirror the performance of the S&P 500 Index. Launched in 1993, SPDR S&P 500 ETF Trust (NYSE Arca: SPY) was the first US-listed exchange traded fund. The S&P 500 Index assesses the large-cap segment of the US equity market, utilizing a float-adjusted market capitalization weighting. As of March 7, 2024, SPDR S&P 500 ETF Trust (NYSE Arca: SPY) provides an expense ratio of 0.0945% and manages nearly $507 billion in assets. It is one of the best ETFs to invest in.
Amazon.com, Inc. (NASDAQ:AMZN) is one of the largest holdings of SPDR S&P 500 ETF Trust (NYSE Arca: SPY). Amazon.com, Inc. (NASDAQ:AMZN) reported Q4 operating income above forecasts and provided robust guidance for the first quarter of 2024. In the fourth quarter, North American total revenue rose by 13% to $105.5 billion, compared to a consensus of $102.9 billion, while international revenue increased by 17% to $40.2 billion, compared to a consensus of $39.0 billion. The overall total revenue for the quarter reached $170.0 billion, surpassing the consensus estimate of $166.3 billion.
According to Insider Monkey’s fourth quarter database, 293 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 286 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 13.6 million shares worth $2 billion.
Polen Global Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”
6. iShares S&P 100 ETF (NYSE Arca: OEF)
5-year Share Price Performance as of March 9, 2024: 92.94%
iShares S&P 100 ETF (NYSE Arca: OEF) aims to replicate the performance of the S&P 100 Index, which consists of 100 large-cap US equities. Established on October 23, 2000, the ETF had net assets of $11.5 billion and an expense ratio of 0.20% as of March 8, 2024. iShares S&P 100 ETF (NYSE Arca: OEF) is one of the best ETFs to buy.
Meta Platforms, Inc. (NASDAQ:META) is one of the largest holdings of the iShares S&P 100 ETF (NYSE Arca: OEF). On February 1, Meta Platforms, Inc. (NASDAQ:META) declared its first quarterly dividend of $0.50 per share dividend. The dividend is payable on March 26, to shareholders on record as of February 22. The company also announced a $50 billion increase in share repurchase authorization.
According to Insider Monkey’s fourth quarter database, 242 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 234 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 11.15 million shares worth approximately $4 billion.
Like Costco Wholesale Corporation (NASDAQ:COST), Eli Lilly and Company (NYSE:LLY), and NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META) is one of the best stocks to buy according to hedge funds.
SaltLight Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:
“Meta Platforms, Inc.’s (NASDAQ:META) primary mission is all about capitalising on user engagement and maintaining its network effects. AI is augmenting their objectives in two ways: 1) Improving engagement time per daily active user (AI Job One) 2) Matching ad buyers (advertisers) with ad consumers (AI Job Two)
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Disclosure: None. 15 Best ETFs To Buy Now is originally published on Insider Monkey.