In this article, we will take a look at the 5 best low cost ETFs. If you want to read our discussion on trends amongst low-cost ETFs, you can check out the 12 Best Low Cost ETFs.
5. iShares Core S&P 500 ETF (NYSEARCA:IVV)
5-Year Price Performance: 49.9%
Total Net Assets as of September 25, 2023: $354.39 billion
Expense Ratio: 0.03%
Number of Holdings: 503
iShares Core S&P 500 ETF (NYSE:IVV) invests in all 500 stocks in the S&P 500 index at weights proportional to their market caps. The ETF employs a complete replication method to mimic the performance of the index. The top 10 holdings of the ETF have a combined weightage of 30.77%. Furthermore, iShares Core S&P 500 ETF (NYSE:IVV) has an average daily trading volume of 3.85 million shares and 790.1 million shares outstanding.
4. SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG)
5-Year Price Performance: 50.7%
Total Net Assets as of September 25, 2023: $20.09 billion
Expense Ratio: 0.02%
Number of Holdings: 503
SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG) tracks the S&P 500 Index. The ETF, launched in November 2005, reduced its expense ratio by 1 basis point on August 1 in a move to boost its AUM. The ETF’s 503 holdings cover 24 distinct industry groups. SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG) makes quarterly distributions and offers a yield of 1.48%. The ETF has an average daily trading volume of 3.1 million shares. Furthermore, it has a price-to-book ratio of 3.96 and an estimated three to five-year EPS growth of 13.7%.
3. JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS)
Price Performance since Inception: 55.9%
Total Net Assets as of September 25, 2023: $2.27 billion
Expense Ratio: 0.02%
Number of Holdings: 593
JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) tracks the Morningstar US Target Market Exposure Index, covering the entire US equity market. The ETF uses an optimization strategy to select and weigh stocks to match the risk profile of the market. It is the only ETF on our list that trades on the Cboe Global Markets exchange, as opposed to the widely popular NYSE Arca, which is recognized as a top exchange for ETF listings. This fund is overseen by portfolio managers with more than two decades of experience.
2. BNY Mellon US Large Cap Core Equity ETF (NYSEARCA:BKLC)
Price Performance since Inception: 53.4%
Total Net Assets as of September 25, 2023: $1.77 billion
Expense Ratio: 0%
Number of Holdings: 195
BNY Mellon US Large Cap Core Equity ETF (NYSEARCA:BKLC) tracks the Morningstar US Large Cap Index, focusing on the large-cap US equity segment. The stocks in the ETF represent the risk and return characteristics of the broader market. The fund adopts an optimization strategy to construct the portfolio while minimizing costs. BNY Mellon US Large Cap Core Equity ETF (NYSEARCA:BKLC) has the highest exposure in the technology sector, with a weight of 32.04% of total assets.
1. SoFi Select 500 ETF (NYSEARCA:SFY)
Price Performance since Inception: 55.8%
Total Net Assets as of September 25, 2023: $526.96 million
Expense Ratio: 0%
Number of Holdings: 502
SoFi Select 500 ETF (NYSEARCA:SFY) tracks the Solactive SoFi US 500 Growth Index, which includes 500 US large-cap stocks selected for growth characteristics. It uses a rules-based methodology to pick stocks with high growth potential based on factors like sales growth, fundraising, and analyst expectations. The fund aims to outperform traditional US large-cap indexes through its growth-oriented stock selection. The ETF is managed by SoFi Invest and does not follow the allocation of traditional index ETFs based on market capitalization. Instead, the ETF allocates weight based on three key factors related to current and future revenue forecasts.
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