Top ETFs

Top ETFs is a stock screener that scans more than 10,000 New York Stock Exchange listed exchange traded funds and compares them to a variety of factors, including price, P/E ratio, dividends, earnings growth rate, and more. Top ETFs allows you to see how the most popular and best performing ETFs stack up against nearly 40 different factors to help you find the best ones for your investment strategy.

More About Top ETFs

Continue reading to learn more about:

What should you look for in an ETF?
Are ETFs good for beginners?
How long should you hold ETFs?
What is the downside of ETFs?
Do ETFs pay dividends?

1 Step 1

What should you look for in an ETF?

First, you should consider the fund's theme. For example, a fundamental index ETF will emphasize low-volatility companies, while a consumer staples ETF might look at stocks that have grown more slowly than the market in recent years. After that, you need to look at the fund's performance. A high expense ratio or annual trading fee could hurt this number. Then look for unexpected costs such as trading fees on both purchases and sales, or 12b-1 fees used to pay for broker incentives or mailing costs. If too many expenses are charged, the fund's long-term track record could be damaged.


Are ETFs good for beginners?

For people who are not familiar with the stock market and don't want to spend a lot of time researching individual companies and analyzing their business models, ETFs offer a fantastic alternative. An ETF is an "index", or a basket of companies, that has been created to track the performance of an index on the stock exchange. This can be broad (for example, tracking the top 500 companies based on their market capitalization) or narrowly focused (for example, tracking pharmaceutical stocks only). The main benefit of an ETF is its cost efficiency.


How long should you hold ETFs?

When selecting an ETF, investors need to consider how they will use it in their personal portfolios. The best ETFs are those that help you achieve your investment goals. Being able to make a profit from an ETF is not always a major factor in a successful investment strategy.
Some of the most profitable ETFs can be sold short, which may be bad for long-term investors. This can be confusing for many people, so the key is to know what you are getting into.
  • What is the downside of ETFs?

    Along with many positives, there are a few drawbacks to keep in mind. For example, ETFs are traded on an exchange just like stocks, and this involves extra costs that must be taken into account. Also, each ETF has its own portfolio and fund manager, so some compare portfolio differences to a lottery game. And finally, since they pool holdings together in one basket, the fund's share price tends to move with movements in the market as a whole.
  • Do ETFs pay dividends?

    ETFs are investment funds, much like mutual funds, but they trade on the stock market and exist in the form of a "basket" of stocks or bonds that are selected to reflect a particular index. The big difference is in how they are taxed: ETFs function like regular stocks when it comes to taxes.