Best ETFs For 2022

#Collaborative post

Exchange-traded funds (ETFs), which trade on an exchange like stocks, enable investors to purchase a variety of equities or other assets in a single fund with modest fees. In the past ten years, ETFs have gained enormous popularity and currently manage billions of dollars in assets. So, where can a potential investor begin when hundreds of ETFs are available? The top ETFs not arranged in order are discussed below.

Vanguard S&P 500 Value Index Fund (NYSE:VOOV)

Investments in value companies from the S&P 500 Index are made through the Vanguard S&P 500 Value Index Fund. The ETF is a viable option for you as a long-term investor who needs to grow money. The ETF closely mimics the performance of the S&P 500 Value Index. The key investment sectors for the ETF are financial, healthcare, industrial, and consumer staples. 

As of April 30, Vanguard S&P 500 Value Index Fund had 448 equities, totaling $3.1 billion in net assets. In addition, 18.10% of the portfolio’s total value is represented by the top 10 holdings. 

An outstanding stock in the Vanguard S&P 500 Value Index Fund’s holdings is UnitedHealth Group Incorporated (NYSE:UNH), a diversified American healthcare company that provides Medicaid programs, health insurance, consumer-focused health benefit plans, and other health management solutions. 

On April 14, UnitedHealth Group Incorporated (NYSE:UNH) revealed its financial results. The company reported Q1 earnings per share of $5.49, $0.14 more than market expectations. In addition, sales of $80.15 billion surged by 14.18% year over year, above analyst projections by $1.38 billion. 

An astute investor would choose Vanguard S&P 500 Value Index Fund:

  • Invests in equities of the S&P 500 Value Index, which comprises the S&P 500’s value firms.
  • Focuses on closely monitoring the index’s performance, which is used as a proxy for the performance of all US value stocks.
  • Offers strong potential for investment development; share value fluctuates more than bond fund value.
  • More suitable for long-term objectives when the growth of your money is crucial.

Vanguard Energy Index Fund (NYSE:VDE)

The Vanguard Energy Index Product is an exchange-traded fund with passive management that seeks to mimic the performance of a benchmark index used to gauge the return of energy sector firms. As of April 30, the ETF has 102 equities and $9.8 billion in net assets. The top 10 holdings of the Vanguard Energy Index Fund account for 66.1 percent of its total holdings.

One of the main sub-sectors of the Vanguard Energy Index Fund is integrated oil and gas, which includes investments in exploration and production, refining and marketing, storage and transportation, equipment and services, and integrated oil and gas. Vanguard Energy Index Fund’s largest investment is Exxon Mobil Corporation (NYSE:XOM), a multinational American oil and gas company headquartered in Irving, Texas.

Why should you consider investing in Vanguard Energy Index Fund?

  • It’s an inexpensive index fund that exposes an investor to the energy sector of the American stock market, which consists of securities of businesses engaged in the discovery and production of energy goods like oil and natural gas.
  •  As it only invests in energy equities, the fund’s primary risk is its limited investment horizon.

Vanguard 500 Index Fund (NYSE:VOO)

By participating in the S&P 500 Index, Vanguard 500 Index Fund exposes you as an investor to 500 of the top US companies. As of April 29, the product’s cost ratio was 0.03 percent. When Vanguard 500 Index Fund’s net assets reached $760.1 billion at the end of April 2022, the top 10 holdings accounted for 29% of the portfolio. Stocks in the information technology sector accounted for 27.40% of the fund’s total holdings. 

Amazon.com, Inc. (NASDAQ:AMZN), the American multinational company specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence, is one of the most well-known companies in the Vanguard 500 Index Fund’s (NYSE:VOO) portfolio.

Reasons you should consider investing in Vanguard 500 Index Fund:

  • By placing all of its assets in Vanguard Institutional Index Fund, Vanguard 500 Index Portfolio’s principal objective is to generate long-term growth. You have access to equities issued by the top American corporations thanks to the portfolio’s participation in this fund.
  • The fund’s goal is to match the performance of the Standard & Poor’s 500 Index.
  • The portfolio could be a good option for people who are saving for education and have a long-term goal. Investors should feel comfortable with the ups and downs of stock market investing.

Invesco QQQ Trust (NASDAQ:QQQ)

Invesco QQQ Trust is an exchange-traded fund that invests in innovation by tracking the NASDAQ-100 Index, which strongly emphasizes growth. The ETF handled assets of $166.33 billion as of May 31. Its assets include mobile payments, streaming services, augmented reality, cloud computing, and electric cars.

Apple Inc. (NASDAQ:AAPL) is the biggest stock in the portfolio of Invesco QQQ Trust and one of the Big Five US IT businesses. Apple shares make up 12.53% of the ETF’s total holdings. On May 25, Loop Capital’s Ananda Baruah maintained his Buy rating and $180 price target on Apple Inc. (NASDAQ:AAPL). However, while he continues to predict that iPhone sales would increase for the June quarter, he added that because the firm’s average pricing continues to be “materially greater” than the Street, the projections for the September and December quarters “remain low.” 

Why should you consider Invesco QQQ Trust?

  • The 100 most significant Nasdaq equities are added to your portfolio in one move by Invesco QQQ Trust (QQQ).
  •  It omits financial information, allowing you to concentrate your portfolio on businesses in industries that are expanding more quickly. 
  • The QQQ is a cheap method to invest in the businesses forming the new economy.

This list probably does not exhaust all the best-performing ETFs an investor can invest in. However, you cannot go wrong investing in either ETFs detailed in the article. But, of course, always make your own financial decision before investing your money in the financial markets. 

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