There are countless exchange-traded funds (ETFs) to choose from. You can invest in everything from bitcoin to pet care.
Yet for my money, some of the best ETFs out there are the SPDR ETFs, run by S&P Global. Let's have a look at five of my favorites, which could help investors grow their nest eggs to a cool $1 million -- or more.
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SPDR S&P Semiconductor ETF
Topping the list of SPDR ETFs is the SPDR S&P Semiconductor ETF (XSD 1.84%). This ETF, which is focused on the semiconductor sector, boasts an excellent performance history since 2009, with an annualized return of 22.3%, making this ETF the top performer among the five listed here.
The fund's top holdings include well-known companies like Nvidia, AMD, and Broadcom, but it also holds shares of lesser-known semiconductor stocks like Rambus and Impinj.
| Company Name | Symbol | Percentage of Assets |
|---|---|---|
| Nvidia | NVDA | 4.2% |
| Advanced Micro Devices | AMD | 3.8% |
| Broadcom | AVGO | 3.5% |
| Marvell Technology | MRVL | 3.5% |
| Impinj | PI | 3.4% |
Granted, investors pay a little more for this ETF; its expense ratio is 0.35%, meaning a $10,000 investment generates $35 in fees. However, that ratio is still below the average ETF expense ratio of 0.57%.
Finally, with a scant dividend yield of 0.3%, this isn't a fund for income-seeking investors.
Technology Select Sector SPDR ETF
Next up is the Technology Select Sector SPDR ETF (XLK 1.13%).
This ETF is focused on the tech sector and counts among its top holdings tech giants Microsoft, Apple, and Nvidia. In addition, other tech stocks, including Advanced Micro Devices, Cisco Systems, and Salesforce, crack its top 10 holdings list.
| Company Name | Symbol | Percentage of Assets |
|---|---|---|
| Microsoft | MSFT | 22.9% |
| Apple | AAPL | 19.1% |
| Nvidia | NVDA | 6.7% |
| Broadcom | AVGO | 5.6% |
| Advanced Micro Devices | AMD | 3.1% |
Because of its tech-heavy nature, the fund has a modest dividend yield of only 0.7%. Meanwhile, its expense ratio of 0.09% means investors will give up only $9 in fees for every $10,000 invested each year.
Since 2009, the fund has delivered an excellent 20.4% annualized return.
SPDR S&P 500 Growth ETF
What I like about the SPDR S&P 500 Growth ETF (SPYG 1.92%) is the fund's wide array of growth stocks.
Sure, it's no big surprise that its top holdings are dominated by "Magnificent Seven" stocks like Microsoft, Nvidia, Alphabet, and Amazon, but beyond that list, the fund has a decent mix of stocks from other sectors. For example, consumer stocks make up 14% of its holdings, while healthcare and industrials make up 7% and 6%, respectively.
| Company Name | Symbol | Percentage of Assets |
|---|---|---|
| Microsoft | MSFT | 13.1% |
| Apple | AAPL | 11.2% |
| Nvidia | NVDA | 8.3% |
| Amazon | AMZN | 6.8% |
| Meta Platforms | META | 4.6% |
Better yet, investors pay rock-bottom fees. The fund's expense ratio is a meager 0.04% or $4 for every $10,000 invested. What's more, the fund's dividend yield of 1.1% offers a light income stream for investors who appreciate cash flow but don't rely on it.
Lastly, with an annualized return of 16.1% since 2009, this ETF has outperformed the overall S&P 500 by a few percentage points for more than a decade.
SPDR S&P 500 ETF Trust
Sometimes you just want to keep things simple. And that's exactly what the SPDR S&P 500 ETF Trust (SPY 0.95%) offers. As the largest ETF by trading volume, this is the go-to ETF for countless investors.
The fund tracks the S&P 500, which, at present, is a very tech-centric index, thanks to the monster market caps of tech giants such as Apple, Microsoft, Nvidia, and the other "Magnificent Seven" stocks.
| Company Name | Symbol | Percentage of Assets |
|---|---|---|
| Microsoft | MSFT | 7.2% |
| Apple | AAPL | 6.2% |
| Nvidia | NVDA | 4.6% |
| Amazon | AMZN | 3.8% |
| Meta Platforms | META | 2.5% |
At any rate, it's hard to ignore this ETF; just about every portfolio could benefit from some exposure to it. What's more, investors won't pay an arm and a leg to own shares of this ETF. The fund's expense ratio of 0.09% is far below the average, and the fund boasts a dividend yield of 1.4% -- not great, but nothing to sneeze at.
In all, this is a great ETF for those who want to "set it and forget it." And, with a 14.2% annualized return dating to 2009, its a fund that will help many investors reach their retirement goals.
SPDR S&P 500 Value ETF
Finally, there's the SPDR S&P 500 Value ETF (SPYV -0.23%). Granted, this value-focused ETF hasn't performed as well as its tech-focused or growth-focused sister funds. However, for value-seeking investors, this ETF is one to consider. Its 12.1% total return compound annual growth rate since 2009 is solid, even if it does trail the overall S&P 500 return.
What's more, the fund's large holdings of financial-services and healthcare stocks, making up 22% and 19% of assets, respectively, offer some much-needed diversity compared to the tech-heavy holdings of the other four ETFs we've discussed.
| Company Name | Symbol | Percentage of Assets |
|---|---|---|
| Berkshire Hathaway | BRK-B | 3.9% |
| JPMorgan Chase | JPM | 2.8% |
| ExxonMobil | XOM | 2.2% |
| Johnson & Johnson | JNJ | 2% |
| UnitedHealth Group | UNH | 1.5% |
Lastly, the fund's 1.7% dividend yield isn't an income investor's dream, but it's slightly above average when compared with the overall S&P 500 dividend yield. Better still, the fund's 0.04% expense ratio is about as low as you'll find.
To sum up, these five SPDR ETFs each offers something different. So whether it's a young investor striving for a growth-oriented portfolio or a value-focused investor looking for a buy-and-hold fund, there's something for everyone. And for many investors, one or more of these funds may just help them retire a millionaire.
