3 ETFs to Buy Now: June 2024

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Exchange-traded funds are a great way for investors to gain exposure to different sectors and fund objectives without having to do all the work of picking and investing in stocks individually. They offer a much more stress-free investment option for people who are looking for a more practical investment approach.

The rate of return of many ETFs also exceeds the returns of major stock indices such as S&P500. The risk of loss is also much lower than that of individual stocks. However, as I explain below, ETFs come with an expense ratio or management fee that eats into potential gains, which is important to keep in mind. Overall, ETFs are a great investment vehicle for both beginners and advanced investors.

Here are some ETFs that have seen high rates of return year-to-date, outperforming the S&P 500 and would be a great addition to the portfolio.

VanEck Semiconductor ETF (SMH)

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VanEck Semiconductor ETF (NASDAQ:SMH) tracks the MVIS US Listed Semiconductor 25, an index composed of the 25 largest semiconductor companies listed in the United States.

Its inception date was December 20, 2011. Its expense ratio is 0.35%, or $35 per year per $10,000 invested. Investors should pay close attention to this metric. It manages $24 billion in assets. Its average trading volume over a month is around 7 million shares.

The top three holdings in the VanEck Semiconductor ETFs include Nvidia (NASDAQ:NVDA), Semiconductor manufacturing in Taiwan (NYSE:TSM), And Broadcom (NASDAQ:AVGO).

Nearly 80% of the fund is made up of U.S. companies, just over 10% are Taiwanese stocks and 7% are semiconductor companies in the Netherlands.

So far in 2024, SMH has performed very well, rising over 58% due to strong investor sentiment towards the sector and the massive share price growth experienced by the stocks it holds. This is a solid fund for investors seeking exposure to the semiconductor sector with continued upside potential.

Invesco S&P 500 MidCap Momentum ETF (XMMO)

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THE Invesco S&P 500 MidCap Momentum ETF (NYSEARCA:XMMO) tracks the S&P MidCap 400 Momentum Index. It includes around 80 stocks that score high in momentum by calculating upward price action.

XMMO’s expense ratio is 0.34%, similar to that of SMH. Its inception date was March 3, 2005. Its average trading volume in a month is around 500,000. And its assets under management are $2.1 billion.

The fund allocates 40% to industrial sectors, with the next largest sectors being information technology and consumer discretionary, which make up 17% and 16% of the fund, respectively.

Invesco S&P 500 MidCap Momentum ETF the three main titles include Lennox International (NYSE:III), Manhattan Associates (NASDAQ:MANH), And Emcor Group (NYSE:GEM).

Year to date, the fund has generated a 27% return thanks to its robust investment strategy, particularly around heavy purchases of securities. industrial values.

XXMO is a solid ETF that provides exposure to mid-sized companies with a high rate of return.

Russell 1000 Growth ETF (IWF)

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THE iShares Russell 1000 Growth ETF (NYSEARCA:IWF) tracks the Russell 1000 Growth Index, which provides exposure primarily to large- and mid-cap growth companies in the United States.

Its inception date was May 22, 2000. Its expense ratio is the lowest of those mentioned here, at just 0.19%. Its assets under management are approximately $97 billion. Its average monthly volume is just over a million. At the time of writing, the total number of holdings in the fund is 439.

The fund includes several sectors, including information technology, which accounts for about 60%, and smaller portions of sectors, such as financials and consumer discretionary.

Russell 100 Growth ETF the three main titles include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia.

The cumulative return of this ETF is 21% as it is exposed to market-leading companies that have performed remarkably recently.

IWF is a growth ETF that provides investors with solid returns and future upside potential.

At the time of writing, Noah Bolton held a long position in NVDA. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Noah has about a year of freelance writing experience. He has worked with Investopedia on topics such as the stock market and financial news.

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