Intro
Exchange Traded Funds (ETFs) are similar to mutual funds; they also can be categorized into 2 main classes such as Equity Exchange Traded Fund (stock ETF) and Fixed Income Exchange Traded Funds (bond ETF). As usual, the bond ETF is less volatile than stock ETF. In this article, I will get into details about Top 10 Popular ETF to invest in either bond ETF or Stock ETF.
Bond ETF can be classified into two main categories such as taxable bond ETF and municipal bond ETF. Taxable bond ETF can consist of short term bond, intermediate term bond, and long term bond ETF including Investment Grade Bond or High Yield Bond ETF. The other bond ETFs are non taxable bond ETF or municipal bond ETF. The municipal bond has advantages especially for people that pay high income tax on Federal and state level since these Bond ETFs are tax free.
Stock ETF can be classified into three main categories such as Domestic Stock ETF, International Stock ETF and Emerging Market ETF. Domestic Stock ETFs include domestic small cap stock ETF, mid cap stock ETF, and large cap stock ETF. International Stock ETFs include European Stock ETF, Pacific Stock ETF, and more. Emerging Stock ETF include most developing countries in Asia, Africa and Eastern Europe. Some of these countries are known as BRIC acronym (Brazil, Russia, India and China).
Other sector ETFs are: REIT ETF, commodity ETF (Gold, Silver, Natural Gas etc), and specific country ETF (Brazil, Russia, India etc)
Best Exchange Traded Funds
The Top 8 Popular ETF to invest is:
- SPDR S&P 500
- SPDR Gold Shares
- iShares MSCI Emerging Markets Index
- iShares MSCI EAFE Index
- Vanguard Emerging Markets Stock ETF
- iShares S&P 500 Index
- iShares Barclays TIPS Bond
- PowerShares QQQ
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