Most Traded ETFs for Trading and Investment

Author

Reads 618

The word etf on a wooden board with scrabble tiles
Credit: pexels.com, The word etf on a wooden board with scrabble tiles

The world of ETFs can be overwhelming, especially for beginners. The SPDR S&P 500 ETF Trust (SPY) is one of the most traded ETFs, with over 1.5 billion shares traded daily.

This ETF tracks the S&P 500 index, providing broad exposure to the US stock market.

The Vanguard Total Stock Market ETF (VTI) is another popular choice, with over 1 billion shares traded daily.

Expand your knowledge: Exchange Traded Mutual Funds Etfs

Market Focus

The most traded ETFs are a diverse group, but they all share one thing in common: they're popular with investors.

The SPDR S&P 500 ETF Trust (SPY) is the largest and most actively traded ETF, with over $300 billion in assets under management. It's a benchmark for the US stock market and a favorite among investors.

Investors are drawn to the SPY because of its low fees and broad diversification, making it a reliable choice for long-term investors.

Broad Market

When investing in the broad market, you have several options to choose from. There are many exchange-traded funds (ETFs) that track the entire US stock market, such as the iShares Core S&P Total US Stock Mkt (NYSE Arca: ITOT) and the Vanguard Total Stock Market (NYSE Arca: VTI).

Consider reading: Us Dollar Currency Etf

Credit: youtube.com, Broad Market

These ETFs provide broad diversification and can be a good starting point for investors who want to invest in the US stock market.

The iShares Core S&P Total US Stock Mkt (NYSE Arca: ITOT) tracks the entire US stock market, while the Vanguard Total Stock Market (NYSE Arca: VTI) tracks the MSCI US Broad Market Index.

Some other popular broad market ETFs include the iShares MSCI ACWI Index (Nasdaq: ACWI), the Schwab US Broad Market ETF (NYSE Arca: SCHB), and the Vanguard Total World Stock (NYSE Arca: VT).

Here are some popular broad market ETFs to consider:

These ETFs can be a good way to gain exposure to the broad market, but it's always a good idea to do your own research and consider your own financial goals and risk tolerance before investing.

Stock

Stock investing is a popular way to diversify your portfolio and potentially earn higher returns.

One of the most well-known stock ETFs is the Cambria Shareholder Yield ETF (NYSE Arca SYLD).

Credit: youtube.com, Budget 2025 LIVE: Stock Market LIVE Updates | Nifty & Sensex | Feb 1st | Business News | CNBC TV18

If you're looking for a broad stock market exposure, consider the iShares Core S&P Total US Stock Mkt (NYSE Arca: ITOT) or the Vanguard Total Stock Market (NYSE Arca: VTI).

Both of these ETFs track a broad market index, providing a wide range of stocks to invest in.

Here are some popular stock ETFs to consider:

  • Cambria Shareholder Yield ETF (NYSE Arca SYLD)
  • iShares Core S&P Total US Stock Mkt (NYSE Arca: ITOT)
  • Vanguard Total Stock Market (NYSE Arca: VTI)

Asset Class

ETFs can be asset allocation funds, which include different asset classes rather than just one. They are usually implemented using a fund-of-funds structure.

One example of an asset allocation ETF is the Russell Investments OneFund (NYSE Arca ONEF), which is composed of nine ETFs, including Vanguard and iShares ETFs.

Asset allocation ETFs can have fixed strategies, such as "aggressive" or "conservative", or target-date strategies where the allocation changes over time.

Some popular asset allocation ETFs include the AdvisorShares Cambria Global Tactical ETF (NYSE Arca GTAA) and the iShares S&P Target Date 2040 Index Fund (NYSE Arca TZV).

  • Guggenheim Enhanced Short Duration Bond ETF (NYSE Arca GSY)

Broad Ex-US

Credit: youtube.com, What are the different asset classes? | Episode 3

The Broad Ex-US category offers a range of ETFs that invest in international markets outside the United States. These funds provide a way to diversify your portfolio and tap into the growth potential of emerging markets.

Some popular Broad Ex-US ETFs include iShares MSCI ACWI ex US Index (NASDAQ|ACWX) and Vanguard FTSE All-World ex-US (NYSE Arca VEU). These funds track a broad index of international stocks, offering a convenient way to gain exposure to global markets.

Here are some specific Broad Ex-US ETFs to consider:

  • iShares MSCI ACWI ex US Index (NASDAQ|ACWX)
  • Vanguard FTSE All-World ex-US (NYSE Arca VEU)
  • Vanguard FTSE All-World ex-US Small-Cap (NYSE Arca VSS)
  • iShares MSCI EAFE Index (NYSE Arca EFA)
  • Vanguard MSCI EAFE (NYSE Arca VEA)
  • Vanguard MSCI Emerging Markets (NYSE Arca VWO)
  • Vanguard Total International Stock (NYSE Arca VXUS)
  • Schwab International Equity ETF (NYSE Arca SCHF)
  • Schwab Emerging Markets Equity ETF (NYSE Arca SCHE)

These ETFs offer a range of investment styles and exposures, allowing you to choose the one that best fits your goals and risk tolerance. By investing in Broad Ex-US ETFs, you can gain access to a diverse range of international stocks and potentially benefit from the growth of emerging markets.

Bond

The bond asset class offers a range of investment options, including government and corporate bonds.

There are many types of bonds to choose from, including Treasury bonds, corporate bonds, and municipal bonds.

Credit: youtube.com, Asset Classes Explained (ULTIMATE BEGINNERS GUIDE: CASH, STOCKS, BONDS, REAL ESTATE & COMMODITIES)

Treasury bonds are backed by the full faith and credit of the US government, making them a low-risk investment.

Some popular bond ETFs include the iShares 1-3 Year Credit Bond (NYSE Arca CSJ) and the iShares 3-7 Year Treasury Bond (NYSE Arca IEI).

Here are some examples of bond ETFs:

Investing in bonds can provide a stable source of income and help diversify a portfolio.

Some popular bond ETFs from other providers include the Vanguard Total Bond Market (NYSE Arca BND) and the Schwab US Aggregate Bond (NYSE Arca SCHZ).

Additional reading: Nyse Etfs

Commodity

Commodity is a broad asset class that tracks the value of physical goods, such as oil, gold, and crops. It's often used as a hedge against inflation or market volatility.

There are several types of commodity ETFs, including those that track agricultural products, energy resources, industrial materials, and precious metals. Some popular commodity ETFs include the ELEMENTS Rogers International Commodity Index ETN (RJI) and the iShares S&P GSCI Commodity-Indexed Trust (GSG).

On a similar theme: Commodity Etfs Vanguard

Credit: youtube.com, Investing 101 - Commodity Asset Class (Beginners Guide)

Commodity ETFs can be categorized into four general categories: agricultural, energy resources, industrial materials, and precious metals. This makes it easier to identify which type of commodity you're interested in investing in.

The most popular precious metals ETFs hold physical stocks of the metal rather than futures. This means you own the actual metal, rather than a contract to buy it at a later date.

Some popular energy commodity ETFs include the ELEMENTS Rogers Energy ETN (RJN) and the iPath Dow Jones-UBS Crude Oil ETN (OIL). These ETFs track the price of oil and natural gas, making them a popular choice for investors looking to hedge against energy price fluctuations.

Here are some examples of commodity ETFs in each category:

  • Agricultural: ELEMENTS Rogers International Commodity Index ETN (RJI), iShares S&P GSCI Commodity-Indexed Trust (GSG)
  • Energy: ELEMENTS Rogers Energy ETN (RJN), iPath Dow Jones-UBS Crude Oil ETN (OIL)
  • Precious Metals: United States Gold Fund (GLD)

Asset Allocation

Asset Allocation is a smart way to diversify your investments by spreading them across different asset classes. This approach can help reduce risk and increase potential returns.

ETFs can be asset allocation funds, which include different asset classes rather than just one. They often use a fund-of-funds structure to achieve this.

Related reading: Real Asset Etfs

Credit: youtube.com, Jack Bogle: How to Create UNBEATABLE Asset Allocation - (John C. Bogle)

The Russell Investments OneFund is a great example of an ETF that uses a fixed strategy, with an allocation of more in stocks and more in bonds. The AdvisorShares Cambria Global Tactical ETF also uses a fixed strategy, but with a more dynamic approach.

Asset allocation ETFs can change their strategy over time, such as the iShares Target Date ETFs which adjust their allocation based on a target date. This can be a good option for investors who want a hands-off approach.

The Guggenheim Enhanced Short Duration Bond ETF is an example of an ETF that focuses on bonds, specifically with a short duration.

Here's an interesting read: Short Etfs

Investment Style

Most traded ETFs can be categorized into four main investment styles: growth, value, income, and sector-specific. These styles are often used to describe the underlying investment approach of an ETF.

Growth ETFs focus on companies with high growth potential, such as those in the technology sector, which includes the popular Invesco QQQ ETF. Value ETFs, on the other hand, focus on undervalued companies with strong fundamentals.

Income ETFs, like the Vanguard Dividend Appreciation ETF, offer regular dividend payments to investors, making them a popular choice for income seekers. Sector-specific ETFs, such as the SPDR S&P 500 ETF Trust, focus on a specific industry or sector, providing investors with targeted exposure.

For another approach, see: Are Etfs Good

Leveraged & Short

Credit: youtube.com, Leveraged ETFs - Not The Return Cheat Code You'd Expect

Leveraged & Short investment styles can be a powerful tool for investors, but they require a deep understanding of how they work. Leveraged ETFs aim to provide a multiple of the daily returns of an index, such as 2x or 3x.

Some popular leveraged ETFs include the Direxion Daily S&P 500 Bull 3x ETF (NYSE Arca SPXL), which tracks 3x the S&P 500 Index, and the ProShares Ultra Dow 30 (NYSE Arca DDM), which tracks 2x the Dow Jones Industrial Average.

Leveraged ETFs can be structured in a sophisticated way, and their extreme volatility may not be suitable for casual investors. The U.S. Securities and Exchange Commission has issued a warning to investors that leveraged ETFs could lead to big losses even if the market index or benchmark they track shows a gain.

Short ETFs, on the other hand, enable investors to profit from declines in an underlying index without directly selling short any securities. Some popular short ETFs include the ProShares Short Dow 30 (NYSE Arca DOG) and the ProShares Short S&P 500 (NYSE Arca SH).

Credit: youtube.com, MacMillan Silver Linings - Leveraged Investment Strategy

Here is a list of popular short ETFs:

  • ProShares Short Dow 30 (NYSE Arca DOG)
  • ProShares Short S&P 500 (NYSE Arca SH)
  • ProShares Short S&P MidCap 400 (NYSE Arca MYY)
  • ProShares Short S&P SmallCap 600 (NYSE Arca SBB)
  • ProShares Short Nasdaq 100 (NYSE Arca PSQ)
  • ProShares Short Russell 2000 (NYSE Arca RWM)
  • ProShares Short MSCI EAFE (NYSE Arca EFZ)

It's essential to understand the risks and rewards associated with leveraged and short ETFs before investing. As with any investment, it's crucial to do your research and consider your financial goals and risk tolerance.

Large-Cap

Large-cap investing is a popular strategy for those looking to invest in established companies with a strong track record. Large-cap ETFs are a convenient way to access this market.

Some of the most well-known large-cap ETFs include the Vanguard S&P 500 (VOO) and the iShares S&P 500 Index (IVV), both of which track the S&P 500 index. These ETFs offer broad exposure to the US large-cap market.

The Vanguard S&P 500 (VOO) has a low expense ratio of 0.04% and over $300 billion in assets under management. The iShares S&P 500 Index (IVV) also has a low expense ratio of 0.03% and over $200 billion in assets under management.

Credit: youtube.com, Small Cap Stocks vs Large Cap Stocks - Which are Better Investments

Other large-cap ETFs worth considering include the Vanguard Large-Cap (VV) and the Vanguard Mega-Cap 300 (MGC). The Vanguard Large-Cap (VV) tracks the MSCI US Large Cap 500 Index, while the Vanguard Mega-Cap 300 (MGC) tracks the CRSP US Mega Cap Index.

Here are some key statistics for these ETFs:

These ETFs offer a convenient and cost-effective way to invest in the US large-cap market.

Active

Active investment style involves actively managed funds, which means the fund manager makes decisions to buy and sell securities based on their analysis of the market. This approach can be more time-consuming and expensive than index funds.

The AdvisorShares group offers several actively managed ETFs, including the WCM/BNY Mellon Focused Growth ADR ETF and the Ranger Equity Bear ETF. These funds aim to outperform the market by selecting specific stocks or sectors.

Some actively managed ETFs are designed to provide income or hedge against market downturns. For example, the Amplify Enhanced Dividend Income ETF seeks to provide a high level of income through a diversified portfolio of dividend-paying stocks.

Take a look at this: Are Etfs Actively Managed

Credit: youtube.com, Active Vs Passive Investing ❓ Which Investment Style gives you higher Returns

Here are some examples of actively managed ETFs from various providers:

Actively managed ETFs can be a good option for investors who want to try to beat the market, but they often come with higher fees and more risk.

Choosing an Investment

To begin, define your investment goal - do you want broad market exposure, sector focus, or international diversification? This will help you narrow down your options and make a more informed decision.

Compare ETFs by expense ratios, as lower fees can save you money in the long run. Consider ETFs with low expense ratios, around 0.05% or less.

Assets under management are another important factor, as larger ETFs often have more resources and stability. Look for ETFs with a significant amount of assets, but be wary of those with too much concentration.

Performance history is also crucial, as it gives you an idea of how the ETF has performed over time. Check the ETF's track record and compare it to its peers.

Consider reading: How to Compare Etfs

Frequently Asked Questions

What is the most popular EFT?

The Vanguard S&P 500 ETF (VOO) is a highly popular ETF, tracking the Standard & Poor's 500 index of top US companies. Its low expense ratio of 0.03% makes it a favorite among investors.

What is the largest financial ETF?

The largest financial ETF is the Financial Select Sector SPDR Fund XLF, with over $39.84 billion in assets. This ETF offers a convenient way to invest in the financial sector with a large market presence.

What is the highest volume leveraged ETF?

The highest volume leveraged ETFs are TQQQ, SQQQ, and SOXL, offering leveraged exposure to the Nasdaq-100 and Semiconductor indexes. These ETFs are popular among traders seeking high liquidity and aggressive market exposure.

Teresa Halvorson

Senior Writer

Teresa Halvorson is a skilled writer with a passion for financial journalism. Her expertise lies in breaking down complex topics into engaging, easy-to-understand content. With a keen eye for detail, Teresa has successfully covered a range of article categories, including currency exchange rates and foreign exchange rates.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.