15 ETFs That Could Double Your Money

15 ETFs That Could Double Your Money
Boost and diversify your basket of stocks with ETFs
There's no one-size-fits-all investing journey. Whether you're a newbie investor looking to expand your stock positions or a veteran who wants to diversify the structure of your investments, exchange-traded funds (ETFs) can be a valuable addition to all types of portfolios.
When you set up your brokerage account and buy an ETF, you're essentially buying into a cluster of investments. What's so attractive about investing in ETFs is that you don't necessarily need a huge chunk of change to get started, and you'll get access to a wide range of stocks or bonds in the fund you select. Investing in ETFs can also be a great way to snag some serious dividend yields that you can put back into your portfolio to grow your holdings or use as side income.
Here are 15 ETFs that could double your money over the next few years.
5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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1. Vanguard High Dividend Yield ETF (NYSEMKT: VYM)
The Vanguard High Dividend Yield ETF is a favorite with investors for a few reasons. The ETF is composed of a diverse array of equities, with financial stocks making up nearly 19% of its sector weights and tech stocks constituting close to 11%. The ETF's top holdings include household names like Procter & Gamble, Johnson & Johnson, and Verizon. With net assets totaling more than $33.3 billion and a current dividend yield of 3.75%, the ETF's 0.06% expense ratio is just icing on the cake.
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2. ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT: NOBL)
The ProShares S&P 500 Dividend Aristocrats ETF is another solid choice if you're looking for noteworthy yields. This ETF contains a very specific basket of stocks. In order to be listed as a Dividend Aristocrat on the S&P 500, a company must raise its dividend on an annual basis no less than 25 years in a row. In short, if a company makes it to this fund, you can rest assured that you're investing in the best of the best.
As of last count, this ETF contains 66 different companies, with an average index market capitalization of $67.1 billion. Top holdings in the ProShares S&P 500 Dividend Aristocrats ETF include Lowe's, Carrier Global, and Cintas. Industrial stocks make up the lion's share of this ETF (25.8%), while consumer staples (18.5%) and materials stocks (12.8%) make up the second- and third-largest sector weightings.
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3. Vanguard Health Care Index Fund ETF (NYSEMKT: VHT)
If you're looking for an ETF with a low expense ratio and a variety of highly profitable assets that could produce some serious returns in just a few years, the Vanguard Health Care Index Fund ETF may be worth your consideration. The ETF holds some of the most well-known names in the healthcare and pharmaceutical industry. Its top holdings include Johnson & Johnson, UnitedHealth Group, Pfizer, and Merck.
The ETF's expense ratio is a negligible 0.10%. The Vanguard Health Care Index Fund ETF boasts net assets of more than $13 billion, with a yield of 1.3% at the time of this writing. Over the past three years, the ETF has produced a daily total return of 11.57%.
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4. Invesco QQQ Trust ETF (NASDAQ: QQQ)
Since the fund's inception in 1999, Invesco QQQ Trust ETF has maintained its unbeatable track record of generating superb returns for investors. The fund is made up of stocks from the Nasdaq-100 index, and its net assets total more than $115 billion. Top holdings in this ETF include Apple, Microsoft, and Amazon.
Even though the ETF's dividend yield is on the lower side of the spectrum at 0.66%, this fund could offer investors a superior return on their investment in a decade or less. In fact, $10,000 invested in the Invesco QQQ Trust ETF 10 years ago would be worth more than $60,000 today. The fund charges an expense ratio of 0.20%.
5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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5. Vanguard Real Estate ETF (NYSEMKT: VNQ)
If you've ever thought about dipping your toe into real estate investment trusts (REITs) but don't quite know where to begin, the Vanguard Real Estate ETF could be an excellent option for your portfolio. The fund holds net assets of nearly $58 billion, with a net expense ratio of 0.12% and a robust yield of about 4%. Its top holdings include American Tower, Prologis, and Crown Castle International.
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6. Global X Cloud Computing ETF (NASDAQ: CLOU)
If the cloud computing space intrigues you, this next ETF may pique your interest. The fund contains 36 different holdings across all corners of the cloud computing and tech sector, with its net assets totaling $1.1 billion. The ETF marks well-known names Twilio, Zoom Video Communications, and Shopify among its top holdings. Year to date, the ETF has achieved a daily total return of more than 45%. It's worth noting that the fund's total expense ratio is on the high side, at 0.68%.
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7. Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD)
Another dividend champion, Schwab U.S. Dividend Equity ETF is much beloved by investors for its meaty yield (3.54%) and extremely low expense ratio (0.06%). The ETF's returns are designed to replicate those of the Dow Jones U.S. Dividend 100 index. At the time of this writing, the ETF has total net assets of nearly $13 billion. Its top assets include United Parcel Service, Qualcomm, and Texas Instruments, which compose 5.74%, 4.89%, and 4.11% of the fund's holdings, respectively.
The financial sector makes up 24.48% of the ETF's portfolio, while industrial stocks (17.45%), consumer staples stocks (17.15%), and information technology stocks (15.08%) snag the fund's other top sector weights.
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8. Vanguard S&P 500 ETF (NYSEMKT: VOO)
Another ETF modeled around the performance of the S&P 500, the Vanguard S&P 500 ETF contains an outstanding blend of stocks across a variety of industries including the technology, financial, and healthcare sectors. Its top holdings include Apple, Microsoft, Amazon, Facebook, and Alphabet.
The ETF carries a miniscule expense ratio of 0.03%, while boasting net assets of more than $571 billion. The fund has produced returns of 23.8% for investors over the past year alone. The Vanguard S&P 500 ETF pays a dividend that yields about 1.9%.
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9. Technology Select Sector SPDR (NYSEMKT: XLK)
The Technology Select Sector SPDR ETF represents all sides of the tech industry. A solid 33.27% of the fund is assigned solely to software stocks, with 19.90% to IT service stocks, 16.73% to companies that make semiconductors and semiconductor equipment, and 25.48% to stocks in the hardware storage and peripherals space. Some of the ETF's most notable assets from its $37 billion portfolio include PayPal Holdings, Mastercard, NVIDIA, Visa, and, of course, Microsoft and Apple.
The Technology Select Sector SPDR fund has a moderate expense ratio of 0.13%, with a yield of about 1.15%, which it pays out quarterly. Analysts have projected the ETF will achieve future earnings-per-share (EPS) growth of nearly 14% over the next three to five years.
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10. Financial Select Sector SPDR (NYSEMKT: XLF)
If financial stocks are your jam, the Financial Select Sector SPDR ETF might be, too. With its healthy basket of 66 stocks and total assets of almost $19 billion, you'd enjoy varied exposure to some of the top financial stocks listed on the S&P 500, including Berkshire Hathaway (B shares), JPMorgan Chase, and Bank of America. The fund's expense ratio of 0.13% isn't bad at all considering its 2.64% yield. Bank stocks constitute 35.20% of the fund's assets, while capital market companies and insurance stocks make up 26.56% and 18.55% of the ETF's holdings, respectively.
5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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11. Vanguard Information Technology ETF (NYSEARCA: VGT)
Another pick from Vanguard, its Information Technology ETF is an assorted mixture of large-cap, mid-cap, and small-cap entities with top holdings including Apple, Microsoft, Visa, Mastercard, and Adobe. It has a fairly low expense ratio of just 0.10%. The Vanguard Information Technology ETF doesn't pay a huge dividend yield (1.08%), but its net assets, worth more than $43 billion, are generating massive returns for investors. Currently, the ETF carries a one-year total return of 57.76%.
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12. iShares Nasdaq Biotechnology ETF (NASDAQ: IBB)
As the largest biotech ETF, iShares Nasdaq Biotechnology offers considerable exposure to equities across all areas of this highly profitable market sector. The fund's net assets amount to more than $9 billion, with 207 total holdings. Its expense ratio is on the pricier side at 0.46%, but it carries a high one-year total return of 25.74% and a three-year average annual total return of 10.04%. The ETF's most notable assets include Amgen, Vertex Pharmaceuticals, Gilead Sciences, and Moderna.
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13. ARK Innovation ETF (NYSEMKT: ARKK)
The ARK Innovation ETF is an actively managed ETF with net assets of $4.8 billion and an expense ratio of 0.75%. The upside to the fund's high expense ratio is its impressive basket of stocks and outstanding annualized performance. Among the ETF's top holdings are names like Tesla, Square, CRISPR Therapeutics, and Zillow (C shares).
Technology stocks compose 28.37% of the fund's sector weightings, while healthcare stocks fill 34.63% of the ETF's basket. ARK has delivered annualized net asset value returns of 26.70% since its inception in October 2014.
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14. Vanguard Total Stock Market ETF (NYSEMKT: VTI)
As its name suggests, the Vanguard Total Stock Market ETF shadows the returns on equities listed in the CRSP US Total Market Index. In other words, if you buy this ETF, you'll essentially have an ownership stake in the complete U.S. stock market. With total net assets clearing the $931 billion mark, this ETF yields a 1.85% dividend and carries a super-low expense ratio of 0.03%.
Some of the most prominent sectors represented in the Vanguard Total Stock Market ETF include technology (23.41%), healthcare (14.96%), financial services (12.72%), and consumer cyclical companies (11.56%).
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15. Fidelity MSCI Information Technology Index ETF (NYSEMKT: FTEC)
Another winning choice in the field of information technology, the Fidelity MSCI Information Technology Index ETF has attained annualized total returns of more than 30% over the past three years. The ETF has holdings in 322 companies, including Apple, Microsoft, Visa, Mastercard, and NVIDIA. It has generated net asset value returns of 34.38% for shareholders since the start of 2020. Given that its expense ratio is just 0.08%, investors who choose this ETF could significantly boost their savings and grow their portfolio in a relatively short period of time.
5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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ETFs can help to recession-proof your portfolio
Investing during a recession can be scary. But even during a recession, you can still build a portfolio that will stand the test of time. By purchasing ETFs that contain a varied basket of resilient investments and capture a broader portion of the U.S. market, you can maximize and grow your returns for years to come.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Adobe Systems, Alphabet (A shares), Alphabet (C shares), Amazon, American Tower, Apple, Berkshire Hathaway (B shares), CRISPR Therapeutics, Crown Castle International, Facebook, Gilead Sciences, Mastercard, Microsoft, NVIDIA, PayPal Holdings, Qualcomm, Shopify, Square, Tesla, Twilio, Visa, Zillow Group (C shares), and Zoom Video Communications. The Motley Fool owns shares of Texas Instruments. The Motley Fool recommends Amgen, Cintas, Johnson & Johnson, Lowe's, UnitedHealth Group, Verizon Communications, and Vertex Pharmaceuticals and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short September 2020 $70 puts on Square, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, and short September 2020 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
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