5 Best ETFs To Buy Now

In this article, we discuss 5 best ETFs to buy now. If you want to read our discussion on the stock market and ETF performance, head directly to 15 Best ETFs To Buy Now. 

5. Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ GS: VONG)

5-year Share Price Performance as of March 9, 2024: 121.02%

Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ GS: VONG) invests in stocks from the Russell 1000 Growth Index, a broadly diversified index primarily composed of growth stocks from large US companies. Launched on September 20, 2010, Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ GS: VONG) comes with an expense ratio of 0.08%, and holds a portfolio of 443 stocks. It is one of the best ETFs to invest in. 

Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ GS: VONG)’s top holdings include Eli Lilly and Company (NYSE:LLY). On December 8, Eli Lilly and Company (NYSE:LLY) declared a $1.30 per share quarterly dividend, a 15% increase from its prior dividend of $1.13. The dividend was paid on March 8. 

According to Insider Monkey’s fourth quarter database, 102 hedge funds were long Eli Lilly and Company (NYSE:LLY), same as the last quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 4.5 million shares worth $2.6 billion. 

Aristotle Atlantic Core Equity Strategy stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2023 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its top-selling drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment, Human pharmaceutical products.

Eli Lilly has a deep pipeline in treatment areas focused on metabolic disorders, oncology, immunology and central nervous system disorders. Currently, there are two phase three assets, Orforglipron, an oral GLP-1 and retatrutide, a triple incretin agonist, which have the potential to expand upon the potential success of Mounjaro. We believe that Mounjaro has the potential to commercialize beyond type 2 diabetes and obesity, potentially in the areas mentioned above of heart disease, sleep apnea, fatty liver disease and chronic kidney disease. We believe the premium valuation is supported by this outsized growth profile.”

4. Invesco QQQ Trust (NASDAQ GM: QQQ)

5-year Share Price Performance as of March 9, 2024: 146.16%

Invesco QQQ Trust (NASDAQ GM: QQQ) ranks 4th on our list of the best ETFs to buy. Invesco QQQ Trust (NASDAQ GM: QQQ) provides access to a diverse portfolio of innovative NASDAQ-100 companies. The ETF, formed in 1999, has a track record of consistently outperforming the S&P 500 Index. As of March 8, 2024, Invesco QQQ Trust (NASDAQ GM: QQQ)’s net assets stood at $252.6 billion, along with an expense ratio of 0.2%. 

Costco Wholesale Corporation (NASDAQ:COST) is one of the top holdings of Invesco QQQ Trust (NASDAQ GM: QQQ). On March 7, Costco Wholesale Corporation (NASDAQ:COST) announced its operating results for the first 24 weeks of fiscal 2024, ending February 18, 2024. The company reported a non-GAAP EPS of $3.71, beating market consensus by $0.07. However, the revenue of $58.44 billion fell short of Street estimates by $690 million. 

According to Insider Monkey’s fourth quarter database, 57 hedge funds were bullish on Costco Wholesale Corporation (NASDAQ:COST), compared to 65 funds in the prior quarter. Ray Dalio’s Bridgewater Associates is a prominent stakeholder of the company, with 687,572 shares valued at $453.85 million. 

Madison Sustainable Equity Fund stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its fourth quarter 2023 investor letter:

“Costco Wholesale Corporation (NASDAQ:COST) reported solid holiday results and announced a special dividend of $15 per share. Earnings were better than expected driven by better gross margin. Same store sales were 3.9% with solid traffic. Costco also noted better discretionary trends and solid seasonal sales.”

3. Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT)

5-year Share Price Performance as of March 9, 2024: 162.20%

Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT) aims to mirror the performance of an index measuring the investment return of stocks in the information technology sector. It employs a passive management approach, utilizing a full-replication strategy when feasible and a sampling strategy when regulatory constraints apply. Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT) includes stocks of companies involved in the electronics and computer industries, or companies manufacturing products based on the latest applied science. The ETF was established on January 26, 2004. It offers an expense ratio of 0.10% and a portfolio consisting of 312 stocks. Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT) is one of the best ETFs to buy. 

Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT)’s top holdings include Adobe Inc. (NASDAQ:ADBE). On December 13, the company reported financial results for its fourth quarter ending December 1, 2023. The non-GAAP EPS of $4.27 and revenue of $5.05 billion outperformed Wall Street estimates by $0.13 and $30 million, respectively. 

According to Insider Monkey’s fourth quarter database, 105 hedge funds reported owning stakes in Adobe Inc. (NASDAQ:ADBE), compared to 112 funds in the last quarter. 

Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:

“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”

2. iShares U.S. Technology ETF (NYSE Arca: IYW)

5-year Share Price Performance as of March 9, 2024: 181.85%

iShares U.S. Technology ETF (NYSE Arca: IYW) aims to replicate the performance of the Russell 1000 Technology RIC 22.5/45 Capped Index, which includes US equities in the technology sector. Established on May 15, 2000, iShares U.S. Technology ETF (NYSE Arca: IYW) provides exposure to electronics, computer software and hardware, and information technology companies, offering targeted access to domestic technology stocks. As of March 8, 2024, the fund’s net assets total $15.8 billion, and its portfolio comprises 133 stocks. The ETF has an expense ratio of 0.40%. iShares U.S. Technology ETF (NYSE Arca: IYW) ranks 2nd on our list of the best ETFs to buy. 

Alphabet Inc. (NASDAQ:GOOG) is one of the top holdings of the iShares U.S. Technology ETF (NYSE Arca: IYW). On March 7, Google’s Alphabet announced that it has established its inaugural Asia-Pacific cyberdefense base in Tokyo, with a focus on advancing research on countermeasures against cyberattacks. The initiative involves sharing information with Japanese government officials, companies, and universities. Additionally, the Tokyo site will serve as a central hub for training experts in the field of regional cyberdefense.

According to Insider Monkey’s fourth quarter database, 166 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 163 funds in the last quarter. 

The FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”

1. VanEck Semiconductor ETF (NASDAQ GM: SMH)

5-year Share Price Performance as of March 9, 2024: 323.63%

VanEck Semiconductor ETF (NASDAQ GM: SMH) ranks 1st on our list of the best ETFs to buy. VanEck Semiconductor ETF (NASDAQ GM: SMH) aims to closely replicate the price and yield performance of the MVIS US Listed Semiconductor 25 Index, which tracks companies specializing in semiconductor production and equipment. Established on December 20, 2011, the ETF had net assets of $17.32 billion as of March 8, 2024, along with an expense ratio of 0.35%.

VanEck Semiconductor ETF (NASDAQ GM: SMH)’s largest holding is NVIDIA Corporation (NASDAQ:NVDA). On February 22, NVIDIA Corporation (NASDAQ:NVDA) declared a $0.04 per share quarterly dividend, in line with previous. The dividend is payable on March 27, to shareholders on record as of March 6. 

According to Insider Monkey’s fourth quarter database, 173 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the last quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with 13.90 million shares worth $6.8 billion. 

SaltLight Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“We were fortunate to have some exposure to some of the ‘Magnificent Seven’ – Amazon, NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms and Google (although in aggregate, we still hold a smaller weighting than the S&P 500).

While we are cautious in AI infrastructure, we do think there are mispriced opportunities in areas of application software where AI can be infused to make a step change improvement. Posted in our office is this chart that ASML provides at each of its investor days. This chart is a little outdated from 2021, but we think illustrates how value (in operating profit) was distributed across semiconductors, hardware, and then software & services. It’s very clear that most of the economic value in the past has accrued to the software services (in gray) built on the backs of highly technical companies run by extremely smart people.

Why is this? We think it is due to a combination of distribution and network effects. Our working hypothesis right now is that this will likely remain a similar outcome in the AI epoch. One outlier right now is Nvidia which is capturing 80% margins..” (Click here to read the full text)

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