Most brokers offer tools to screen thousands of offerings in ETFs to ease the investors. Thus, this article focuses on sorting criterias you could use in screening the ETF offerings. The first is volume. The higher the volume, the easier you could trade the fund. You could filter the volume to analyze funds’ popularity. The second is expenses. When the ratio is low, the lower you would pay for the investment administrative costs. It is indeed tempting to enter funds with lower administrative costs. But you need to know that the more cost you spend on the fund the stronger the performance.
The third is performance. Performance is basically not how you define future returns. This is actually the tool you can use to compare ETFs. The fourth is holdings. This tool allows customers to compare and contrast different holdings with possible ETF investment. The fifth is commissions, it is to note that some ETFs are commission-free. It means that they could trade without fees. But since it is commission-free, it is important to check whether this deal breaker is worth investing.
There are many popular ETFs in the market you could enter. But they have many purposes, some use it to track index stocks and create a broad portfolio. Others only target particular industries. The most popular one is the SPDR S&P 500. Their Spider is the oldest surviving and the most known ETF tracking S&P 500 Index. Then, there is the iShares Russell 2000. It tracks the small-cap index in Russell 2000.
Then, there is Invesco QQQ tracking the Nasdaq 100 Index. It contains technology stocks. Next, there is the SPDR Dow Jones Industrial Average. The name is diamonds, it represents 30 stocks from the Dow Jones Industrial Average. There are also sectoral ETFs like oil OIH, energy XLE, financial services XLF, and many more.