The title of this article might seem unappealing -- why just focus on iShares ETFs, right? Well, it's actually worth seeking out some of the best iShares ETFs because the universe of iShares ETFs is immense: iShares, the ETF division of $120-billion investment manager BlackRock, offers more than 1,400 ETFs, full of domestic and/or global securities.
Here, then, is a look at just seven impressive ETFs within the iShares universe. (Remember that exchange-traded funds (ETFs) are funds that trade like stocks -- but which have some differences, such as charging an "expense ratio" or annual fee. Fortunately, many of the best ETFs' fees are quite low.)
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Meet the seven solid iShares ETFs
Here are seven iShares ETFs to consider for your long-term portfolio. Holding just one or a few for many years while adding to it regularly can help you build a hefty nest egg to fuel a comfortable retirement. Each of the seven has a solid track record and low fees.
|
Fund |
Expense Ratio |
5-Year Avg. Annual Return |
10-Year Avg. Annual Return |
|---|---|---|---|
|
iShares Semiconductor ETF (SOXX -0.85%) |
0.35% |
30.4% |
24.2% |
|
iShares MSCI USA Momentum Factor ETF (MTUM -1.21%) |
0.15% |
12.2% |
13.6% |
|
iShares Core S&P 500 ETF (IVV -1.08%) |
0.03% |
14.3% |
12.8% |
|
iShares Core S&P Total U.S. Stock Market ETF (ITOT -1.09%) |
0.03% |
13.5% |
12.3% |
|
iShares Core MSCI Total International Stock ETF (IXUS -0.27%) |
0.07% |
5.5% |
4.3% |
|
iShares Core Dividend Growth ETF (DGRO -0.61%) |
0.08% |
11.5% |
N/A |
|
iShares Core U.S. Aggregate Bond ETF (AGG -0.21%) |
0.03% |
0.2% |
1.4% |
Source: Morningstar.com.
1. iShares Semiconductor ETF
This ETF has the most impressive returns in the bunch, albeit with a somewhat higher expense ratio. It's an example of a certain kind of ETF -- a sector ETF -- that's focused on a certain sector, such as healthcare, financials, energy, or... semiconductors. This ETF invests in about 30 semiconductor companies -- such as Nvidia, Broadcom, Advanced Micro Devices, and Qualcomm.
2. iShares MSCI USA Momentum Factor ETF
If you're looking to juice your portfolio's returns, you might want to invest in a broader range of growth stocks than just semiconductor specialists. This ETF, encompassing about 124 stocks, is focused on those with momentum -- which will often include all "Magnificent Seven" stocks: Apple, Amazon, Google parent Alphabet, Facebook parent Meta Platforms, Microsoft, Nvidia, and Tesla.
3. iShares Core S&P 500 ETF
Another way to be quickly invested in all Magnificent Seven stocks is via a simple S&P 500 index fund that aims to deliver roughly the same returns as the S&P 500 index, less its small fees. So consider the iShares Core S&P 500 ETF. It offers exposure to just about all the big American companies you can think of, along with lots of mid-cap companies. A simple, low-fee S&P 500 index fund can be all you need for your retirement savings.
4. iShares Core S&P Total U.S. Stock Market ETF
You might opt to invest in the iShares Core S&P Total U.S. Stock Market ETF instead of or in addition to the Core S&P 500 ETF. Why? Well, because it aims to track the returns of the entire U.S. stock market, not just 500 of the biggest companies. So its 2,500-some holdings also include lots of small companies, such as Groupon, Petco Health and Wellness, and 23andMe, each of which was recently worth less than $600 million. (Still, the ETF's top holdings are large-cap businesses.)
5. iShares Core MSCI Total International Stock ETF
You can cast your net even wider with the iShares Core MSCI Total International Stock ETF, which encompasses companies from the entire world's stock markets -- some 4,300 of them recently. This ETF will, therefore, give you exposure to lots of economies growing more briskly than ours. Indeed, it actually excludes U.S. stocks from its mix.
6. iShares Core Dividend Growth ETF
The iShares Core Dividend Growth ETF is another fine ETF to consider because it's focused on dividend-paying stocks -- and dividend payers tend to be more established and reliable growers, often performing better than non-payers. The ETF's dividend yield was recently about 2.4% and its portfolio of around 419 stocks recently included top holdings ExxonMobil, Chevron, Microsoft, and JPMorgan Chase.
7. iShares Core U.S. Aggregate Bond ETF
Finally, since this is a list of ETFs that can serve you well as you save and invest for retirement, consider this bond-focused ETF as well since many people like to start or add to bond positions as they approach and enter retirement. This is a well-respected ETF tracking the Bloomberg US Aggregate Bond Index. It's not likely to outperform stock funds over the long run, but it does offer diversification and some income. Its dividend yield was recently 4.4%.
These are just seven of many appealing ETFs out there. A little digging can turn up many more that might be of interest for your portfolio. Or just choose one or a few of these. Remember that you can do quite well with just an S&P 500 index fund.
