ETF Rankings [November 2024]: Top Funds for a Diversified Portfolio

Our ETF rankings represent an expert-curated list drawn from a broad range of exchange-traded funds, with updates occurring every quarter. To ensure that only the most valuable options are highlighted, we evaluate each fund based on several key criteria:

• Portfolio Diversification – Each ETF is assessed for its potential to enhance a well-rounded, diversified portfolio, reducing overall risk and improving long-term resilience.

• Alignment with Investment Strategy – We consider how well each fund aligns with a diversified, long-term investment approach, ensuring compatibility with common market strategies.

• Projected Performance Over the Next 5 Years – We evaluate the likelihood of each ETF achieving positive returns within a five-year horizon, considering both historical performance and future market potential.

• Expense Ratio – Fund costs are critical. We look for funds with lower expense ratios, which can help preserve more of your investment returns over time.

For most investors, achieving strong diversification can be simpler with ETFs compared to individual stocks. By selecting just a few well-chosen ETFs, you can gain exposure to various sectors, market caps, and international markets without needing an extensive list of individual investments.

If you're looking to increase exposure to specific areas, like small-cap stocks or emerging markets, our rankings and substitution recommendations can guide you to targeted options. Remember to consider your unique goals and risk tolerance when building or adjusting your portfolio.

ETF Rankings - November 2024

1. Vanguard Total Stock Market ETF (NYSEMKT: VTI) – Comprehensive U.S. market exposure, covering large, mid, small, and micro-cap stocks.

2. iShares S&P 600 Small-Cap ETF (NYSEMKT: IJR) – Focuses on small-cap U.S. stocks, perfect for growth-focused portfolios.

3. Vanguard Mid-Cap ETF (NYSEMKT: VO) – Provides access to mid-sized companies, offering a blend of stability and growth.

4. iShares Core S&P 500 ETF (NYSEMKT: IVV) – Covers the top 500 U.S. companies, an ideal choice for core holdings.

5. Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) – Targets companies with a record of consistently increasing dividends.

6. Vanguard Value ETF (NYSEMKT: VTV) – Aims at value stocks, which are typically less volatile and can provide stability.

7. Schwab International Equity ETF (NYSEMKT: SCHF) – International exposure, focusing on developed markets outside the U.S.

8. Vanguard Growth ETF (NYSEMKT: VUG) – Targets large-cap growth stocks, for those aiming to capitalize on growth sectors.

9. Vanguard Real Estate ETF (NYSEMKT: VNQ) – Provides exposure to the real estate sector, useful for diversifying asset classes.

10. Vanguard FTSE Emerging Markets ETF (NYSEMKT: VWO) – Covers stocks from emerging markets, ideal for high-growth potential.

11. Vanguard FTSE All-World ex-US Small-Cap ETF (NYSEMKT: VSS) – International small-cap exposure, diversifying geographically and by size.

With this carefully selected list, you can find the right ETFs to cover critical market areas and build a strong, diversified portfolio in line with your goals.