The fund offers investors a global blend of all the companies previously mentioned -- from tech titans to large healthcare companies and financial service providers. The businesses also range from fast-growing to more stable dividend payers. For a well-rounded portfolio of large-cap stocks, the iShares Global 100 ETF is worth a look.
Characteristics of blue chip ETFs
Blue chips can offer investors diversification, steady growth potential, and, often, reliable dividend income. Blue chip ETFs are generally considered lower-risk investments due to the resilience of their underlying companies, many of which are household names and industry leaders. However, this stability often means slower, more moderate growth compared to smaller, riskier growth stocks.
Blue chip stocks aren't a perfect solution
Many investors are drawn to blue chip stocks in the hope that these companies will help them safely ride out economic storms. However, even large, well-established companies can encounter painful turbulence. Investing in blue chips certainly does not mean an escape from the ups and downs of the stock market.
A well-diversified lineup of blue chip stocks is a resilient portfolio that can roll with the punches and rebound after the economy falters. Blue chip stocks are also ideal for investors seeking income, as firmly established companies tend to be able to keep doling out dividends even in difficult times.
Whatever your goal as an investor, blue chip stocks should comprise some portion of your investments. Investing in an ETF can help you put together a list of blue chip names without having to hand-pick large businesses for your investment dollars.