Best ETF Portfolio of the year (2024)

FAQs

What is the best ETF portfolio? ›

That makes outperforming the S&P 500 on a consistent basis no small task. The one fund that has beaten the index in nine of the past 10 years is the Technology Select Sector SPDR Fund (NYSEMKT: XLK).

For those new to investing or seeking a low-cost and diversified approach, Suze Orman recommends investing in low-cost index funds and exchange-traded funds (ETFs). These investment vehicles provide exposure to a broad range of stocks while minimizing fees and expenses, which can significantly impact long-term returns.

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

For most personal investors, an optimal number of ETFs to hold would be 5 to 10 across asset classes, geographies, and other characteristics.

Average Return

In the past year, QQQ returned a total of 35.23%, which is significantly higher than VOO's 28.33% return. Over the past 10 years, QQQ has had annualized average returns of 18.77% , compared to 12.87% for VOO. These numbers are adjusted for stock splits and include dividends.

QQQ Performance. Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 eight out of the last 10 years as of March 31, 2024. Source: Morningstar Inc.

The Direxion Daily S&P 500^® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500^® Index.

The highest performing fund in the list was the $116m PGIM Jennison US Growth fund, managed by Blair Boyer, Natasha Kuhlkin and Kathleen McCarragher. The strategy was up 53.47% in 2023, after a 39.83% loss in 2022.

One of the biggest reasons Ramsey cautions investors about ETFs is that they are so easy to move in and out of. Unlike traditional mutual funds, which can only be bought or sold once per day, you can buy or sell an ETF on the open market just like an individual stock at any time the market is open.

Can you retire a millionaire with ETFs alone? ›

Investing in the stock market is one of the most effective ways to generate long-term wealth, and you don't need to be an experienced investor to make a lot of money. In fact, it's possible to retire a millionaire with next to no effort through exchange-traded funds (ETFs).

For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.

Specifically, a fund is prohibited from: acquiring more than 3% of a registered investment company's shares (the “3% Limit”); investing more than 5% of its assets in a single registered investment company (the “5% Limit”); or. investing more than 10% of its assets in registered investment companies (the “10% Limit”).

Q: How does the wash sale rule work? If you sell a security at a loss and buy the same or a substantially identical security within 30 calendar days before or after the sale, you won't be able to take a loss for that security on your current-year tax return.

Rule of 40 = Revenue Growth Rate (%) + EBITDA Margin (%)

Here's a simple example: If a company has a revenue growth rate of 20% and an EBITDA margin of 30%, the Rule of 40 is met (20% + 30% = 50%), indicating a robust financial position.