Exchange Traded Funds (ETFs) have become popular because they allow investors to own a diversified set of securities, such as U.S. stocks, at a low cost. The following ETFs offer a simple way for anyone to start investing in U.S. Stocks.
SPY ETF (S&P500)
The
SPY ETF is one of the most popular funds that aims to track the S&P500. The S&P 500 or Standard & Poor's 500 Index is an index that comprises 500 large and mid-cap U.S. stocks. The S&P 500 is widely regarded as the best gauge of large-cap U.S. equities and indicates the financial health of the U.S. economy.
This fund is the largest ETF in the world.
The SPY ETF is a diversified basket of stocks, which allocates its fund into multiple sectors, such as Information Technology, Health Care, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials.
This ETF is used in the
Global Stable,
Global Conservative,
US Balanced and the
US Growth strategy.
QQQ ETF (Nasdaq 100)
The
QQQ is an ETF that tracks the Nasdaq 100 index. The Nasdaq 100 index is heavily concentrated with technology companies but also includes companies from other sectors. The index is dominated by big tech names like Google, Apple, Amazon and Facebook
The index includes companies from various industries except for the financial industry. Its focus is on large international and U.S. companies in the technology, retail, biotechnology, industrial and health care sectors.
The Nasdaq 100 index is often used as a barometer of the health of the technology sector.
This ETF is used in the
Global Stable,
Global Conservative,
US Balanced and the
US Growth strategy.
MDY ETF (Midcap 400)
The
MDY ETF tracks the S&P MidCap 400 Index.
The S&P MidCap 400 Index comprises 400 U.S. companies with midrange capitalization.
This ETF is used in the
Global Conservative,
US Balanced and the
US Growth strategy.
IWM ETF (Russell 2000)
The
IWM ETF is designed to track the performance of the Russell 2000 index, comprised of the 2,000 smallest stocks on the U.S. market.
This index is a way to track the smaller companies in the public markets instead of the biggest.
This ETF is used in the
Global Stable and the
Global Conservative strategy.