ETFs
Top 3 ETFs to Buy in July 2024
Investing in the best ETFs to buy now can help simplify your investing strategy.
ETFs, or exchange-traded funds, are an attractive way for investors to stay ahead of the market without having to manage a multitude of individual stocks. Plus, these funds tend to offer exposure to multi-year trends and themes, making them ideal bets for diversifying investment portfolios.
As we move forward, ETFs will continue to grow in popularity, with their appeal largely driven by their low maintenance, minimal fees, and the ability to target a broad range of stocks with a single investment.
That being said, here are the three best ETFs to buy that effectively align with a low-cost, strategic investment approach. These top-tier ETFs have performed well over the years, with strong fundamentals while offering healthy long-term upside potential. Plus, they have a great track record of delivering consistent returns to their investors, which adds to their appeal.
Best ETFs to Buy: iShares US Technology ETF (IYW)
Source: Sundry Photography / Shutterstock.com
Invest in the iShares US Technology ETF (NYSEARCA:I loved) looks like a tech enthusiast’s dream come true. IYW stock offers access to some of America’s best tech companies, including heavyweights that have led the market to monumental gains. About 45% of its total assets are in three of the largest technology actions In Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), And Nvidia (NASDAQ:NVDA). With these elite US tech companies leading the way, IYW stock is enviably positioned to outperform the broader market with considerable aplomb.
Furthermore, the appeal of the IYW is further enhanced by its reasonable expense ratio of 0.40%making it a profitable option for tech investors. Additionally, IYW stock has outperformed the broader market and more over the past decade. Its 10-year return is 531%, which is well above the S&P 500 179% gain. This gap can be observed over several time horizons, including last year where IYW stock rose 43% while the broader market was up 24%.
ETF Global X Artificial Intelligence and Technology (AIQ)
Source: Tapati Rinchumrus / Shutterstock.com
AI has arguably been the biggest investment trend of the past year, and perhaps the ETF Global X Artificial Intelligence and Technology (NASDAQ:AIQ) offers investors a premier place to discover the best products in the industry. With robust annual growth of 31% over the past year and more than 120% over the last five yearsAIQ stands out as one of the best-performing AI-focused ETFs. Its portfolio of 91 stocks and a competitive total expense ratio of 0.68% make it an attractive option for those looking to enter the booming AI and big data sectors.
Additionally, with its top 10 holdings representing 36% of total assets, AIQ stock effectively mitigates risk better than most of its peers. Nvidia plays a key role in its stock valuation, but its investments in AI effectively protect it from downside risk. This strategic allocation ensures that the other components of the portfolio can support the fund’s performance when Nvidia is in correction territory.
Avantis US Large Cap Value ETF (AVLV)
Source: SHUN_J / Shutterstock
THE Avantis US Large Cap Value ETF (NYSEARCA:AVLV) offers investors an excellent opportunity to access high-quality, value-priced U.S. large-cap stocks. By focusing on stocks trading at lower valuations and higher profit margins, the Avantis ETF aims to significantly enhance potential returns.
The ETF currently manages over $3.6 billion in assets, spanning diverse sectors including healthcare, technology, financial services, and more. Additionally, It holds stakes in 314 companieswith investments in some of the stock market darlings, including Meta (NASDAQ:META), JPMorgan Chase (NYSE:JPM), Costco (NASDAQ:COST)
The fund’s balanced approach, which targets undervalued profitable companies, gives it an edge. It is an effective investment vehicle to diversify your portfolio with solid, stable and growth-oriented assets. In addition, AVLV stock yields 1.62%with two consecutive years of dividend growth. While its dividend growth rate may be unimpressive, I wouldn’t want to bet against the enormous potential of large-cap U.S. stocks.
As of the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines
As of the date of publication, the responsible publisher had not (directly or
(indirectly) all positions on the securities mentioned in this article.
Muslim Farooque is a passionate investor and an optimist at heart. A lifelong fan of video games and technology, he has a particular affinity for analyzing technology stocks. Muslim holds a Bachelor of Science degree in Applied Accounting from Oxford Brookes University.