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These days, many individual investors are considering investing in exchange-traded funds (ETFs). This is because an ETF is known to have a higher liquidity and lower fees compared to mutual funds, making it a smart investment option.
ETFs trade like stocks and they see a lot of volatility, all thanks to the trading of ETFs. It is believed that there are around 19,000 ETFs in the nation in total, making it difficult for people to decide which top ETFs to invest in.
Here are the four top ETFs of 2018 that you must check.
Vanguard Health Care ETF
If you go by the asset, Vanguard is the second largest US ETF sponsor. Vanguard Health Care (VHC) is a smart investment as the health industry is booming for decades now and it will continue to grow for the coming decade. By investing in VHC, you are sure to make a profit as the health industry is minting money all thanks to the increasing medical bills and the fact that the health industry never sees a dull time. The best thing about VHC is that it is affordable, just like all the other Vanguard funds.
This fund holds stocks in over 380 companies, with Johnson & Johnson, UnitedHealth Group Inc, and Merck & Co being some of the top holdings. Compared to the other health-related funds in the market, VHT has a lower risk rate, i.e. below average risk rate, making it one of the best ETFs to invest in. The expense rate for investing in this fund is 0.1% i.e. $10 per year for every $10,000 you invest.
Tortoise Water Fund
In the era where so many southern states of the nation are facing drought problems and drastic climate changes, the government water suppliers are without doubt doing well. Tortoise Water fund is a small, lesser-known fund that was launched just a year back in 2018 but that should not stop you from looking at its long-term value. The fund aims to help companies that deal with constructing water infrastructure, maintaining them and treating the wastewater.
Pentair (PNR) and Water Utility Aqua America are two major holdings that come under this fund. The total expense of investing in this fund is approximately around 0.4%. Note that even though this water fund cannot compete with the big shot electronic and tech companies, it is still a smart financial investment and one of the best ETFs to invest in.
Loncar Cancer Immunotherapy ETF
If you want to take a step ahead and want to invest in a niche healthcare industry, then funds that work towards cancer cures could be something that you look at. This fund only has 30 stocks with cancer researchers and pharmaceutical companies as the top holdings. Some of the top companies that this fund invests in include Merck & Co, Novartis ADR, and MorphoSys ADR. Before you invest in this type of fund, you must understand the risk in this fund is high as the clinical trials might disappoint you time and again. However, the cause is noble, and the funds have a big long-term potential, making Loncar is one of the best ETFs that you can invest in. A total of 0.79 % of expense is estimated if you decide to invest in this ETF.
Many young entrepreneurs are considering investing in some of the top ETF picks as they are not just low cost, but they also give you the opportunity to explore diversified investment portfolios that you would not otherwise get to explore with the regular mutual funds. The choice of ETF is a subjective preference but keep in mind that you need to monitor the volatile industry, irrespective of which fund you select to invest in.
When it comes to investing in one of the best ETFs, there is no guarantee that your stocks will always gain your profit and you will never experience loss. However, if you have a sound knowledge of the stock world and do your homework well, you might be able to lessen your risk and be able to choose the best ETFs to invest in. If you are still confused about which ETF is the best, then seek professional advice or ask for a recommendation from friends or colleagues who have a fair knowledge of the stock market.
