Top Rated ETF Finder
We are aiming to create a directory of exchange traded funds so that you can quickly find the top-rated for each particular category.
These resources are intended to help you to identify specific ETFs that fit your investment strategy and requirements.
These are the considered to be the top-rated ETF’s for each specific sector, based on data collated from various sources
The links provide up to date performance data and more information about the fund.
- Top 10 ETFs
- Energy and Commodity (Combined) ETFs
- Precious Metals ETFs
What is an ETF?
A fair percentage of investors tend to ask this question, despite the fact that if they are approaching a retirement age, there is a high probability that they are already investors in these funds, even if they do not actually realise this fact.
An ETF is an exchange-traded fund and despite the fact that they have been in existence since the early 1990’s, they really only came to prominence and started to be used extensively, about a decade later.
Investments in ETF’s are hardly insignificant as the total net assets in these type of funds is currently estimated at about $1.5 trillion. Although this is only about 10% of the total assets held through investment companies, which are mostly mutual funds, it is still a large amount of investors cash tied up in an ETF.
The confusion for investors is trying to understand the difference between a mutual fund, index fund and and ETF.
A mutual fund is reliant on the services of a professional fund manager who is tasked with the job of actively managing the investments of others, in return for a fee.
An index fund does what it says on the tin and is designed to track the various stock market indices around the world such as the S&P 500. The idea behind this type of fund was to beat the market by tracking the components of a market index. This provides low-cost exposure without the services and costs of a specific fund manager and is considered to be a form of passive investing.
An ETF does in a number of respects, resemble the form of an index fund. the similarities are that an ETF operates on the same goal as an index fund, which is to provide investors with a benchmark return at minimal cost for gaining that investment exposure.
The fundamental difference between an index fund and an ETF is that an Index Fund is generally much more expensive to trade than an equivalent ETF, which is normally commission-free.
You should be aware that not all ETF’s are the same and whilst many of them are designed to emulate index funds, some operate simply as trading tools.
If you are looking for equality of performance that is comparable to an index fund but with lower trading costs, it is normally advisable to stick to the the more sizeable ETF’s which are specifically designed to match the main benchmarks and have been able to demonstrate a track record that testifies their accuracy in achieving this aim to your benefit.
How to invest in an ETF
One aspect of investing in an ETF that some investors might find a bit frustrating is the fact that you have to go through a broker to invest your money.
It pays to shop around for the best commission deals as a high broker’s commission on buying and selling your ETF investment, could quickly eat into your profits and negate any advantage you may have gained in costs.
The main point to remember at this point when evaluating the cost comparisons of investing in an ETF or a Mutual Fund in comparison, is that there are normally savings advantages to be gained with an ETF if you are considering investing a lump sum.
if you are perhaps doing a rollover of a 401(k) or an IRA , the sums normally work out in favor of investing in an ETF if it is a lump sum of cash you are putting in. If you are planning on investing a regular monthly sum of money that is less than $500 per month, you may well find that the mutual fund fees are slightly lower.
Costs are not the only deciding factor when considering investing in an ETF but these amounts can make a difference to your returns, so they need to be compared and analyzed.
If you are new to ETF’s, it is often a sensible strategy to start with investments in funds that track broad market indexes and look for ones that can demonstrate a strong performance record combined with low management and broker fees.
You can always diversify and add to your ETF portfolio once you have investigated the other opportunities in more complicated markets elsewhere.