30 Largest ETFs (Exchange Traded Funds)

ETFs (Exchange Traded Funds) are introduced to investors since 1990. The first fund was launched in Canada. Nowadays, there are more than 1,500 ETFs. Most of the ETFs are index funds; they are tracking their index benchmark such as S&P 500, NASDAQ 100, FTSE, MSCI, etc.

More ETFs mean more tools for investors trying to diversify their portfolios and profit from targeted industry trends. Traded like stocks, you can buy or sell ETFs from stock market or exchange like NYSE or NASDAQ.

As a prospective buyer, you need to ask whether you should invest in the biggest and most popular closed end funds. Are these popular closed end funds really worth your money? The answer isn’t as easy to find as you might think. You can find many companies which provide ratings on closed end funds including Morningstar, Money, US News, Kiplinger, Forbes, etc.

Popular ETFs for Investment

The 30 largest ETFs (Exchange Traded Funds) are:

1. SPDR S&P 500 ETF (SPY) $171B
2. iShares Core S&P 500 ETF (IVV) $61B
3. iShares MSCI EAFE ETF (EFA) $55B
4. Vanguard FTSE Emerging Markets ETF (VWO) $50B
5. PowerShares QQQ (QQQ) $46B
6. Vanguard Total Stock Market ETF (VTI) $46B
7. Vanguard REIT ETF (VNQ) $45B
8. iShares MSCI Emerging Markets ETF (EEM) $44B
9. SPDR Gold Shares (GLD) $32B
10. Vanguard FTSE Europe ETF (VGK) $27B
11. iShares Russell 1000 Growth ETF (IWF) $25B
12. Vanguard FTSE All-World ex-US ETF (VEU) $24B
13. Vanguard Dividend Appreciation ETF (VIG) $24B
14. Vanguard FTSE Developed Markets ETF (VEA) $24B
15. iShares Russell 1000 Value ETF (IWD) $24B
16. iShares Russell 2000 ETF (IWM) $23B
17. iShares Core S&P Mid-Cap ETF (IJH) $22B
18. Vanguard S&P 500 ETF (VOO) $21B
19. Vanguard Total Bond Market ETF (BND) $21B
20. SPDR Financial Select Sector Fund (XLF) $18B
21. iShares Core U.S. Aggregate Bond ETF (AGG) $18B
22. iShares iBoxx Investment Grade Corporate Bond ETF (LQD) $18B
23. Vanguard Short-Term Bond ETF (BSV) $16B
24. SPDR S&P MIDCAP 400 ETF (MDY) $16B
25. Vanguard Growth ETF (VUG) $15B
26. Vanguard Value ETF (VTV) $15B
27. iShares MSCI Japan ETF (EWJ) $15B
28. iShares Select Dividend ETF (DVY) $14B
29. SPDR Technology Select Sector Fund (XLK) $14B
30. iShares Core S&P Small-Cap ETF (IJR) $13B

More: Top ETFs 2014

Exchange traded funds have several advantages for investors:

• ETFs has lower expense fee than mutual funds. There is also no sales load.
• ETFs are tax efficient.
• Investors can diversify their portfolio using variety of ETFs such as domestic ETF, international ETF, bond ETF, commodity ETF, etc.
• Some broker may offer free ETFs for trading.

The disadvantages of ETFs are:

• You need to pay commission to a broker for investing in ETFs.
• ETFs are still new; they may not cover all investment options.
• There are still limited researches available for ETFs, investor need to choose properly for these ETFs.

How to Invest

You can buy these exchange traded funds from your regular stock brokers including Fidelity, Vanguard, TD Ameritrade, Merrill Edge, E*Trade, etc. These funds are traded like stocks in stock exchange including NYSE (New York Stock Exchange), and NASDAQ. Please do research about the funds before making the purchase.

Top ETF Providers

• iShares by BlackRock
• Vanguard
• State Street Global Advisors - SPDR
• WisdomTree
• Invesco Powershares
• ETF Securities
• Direxion
• EG Sahres
• Guggenheim
• IndexIQ
• PIMCO
• Van Eck
• ProShares

ETF Performance & Expense Fee

1. SPDR S&P 500 ETF (SPY) - Performance 1 Year: 25.06% Expense Ratio: 0.09%
2. iShares Core S&P 500 ETF (IVV) - Performance 1 Yr: 25.22% Expense Ratio: 0.07%
3. iShares MSCI EAFE ETF (EFA) - Performance 1 Yr: 16.250% Expense Ratio: 0.34%
4. Vanguard FTSE Emerging Markets ETF (VWO) - Performance 1 Yr: 23.53% Expense Ratio: 0.15%
5. PowerShares QQQ (QQQ) - Performance 1 Yr: 34.25% Expense Ratio: 0.20%
6. Vanguard Total Stock Market ETF (VTI) - Performance 1 Yr: 24.84% Expense Ratio: 0.05%
7. Vanguard REIT ETF (VNQ) - Performance 1 Yr: 21.44% Expense Ratio: 0.11%
8. iShares MSCI Emerging Markets ETF (EEM) - Performance 1 Yr: 20.51% Expense Ratio: 0.67%
9. SPDR Gold Shares (GLD) - Performance 1 Yr: -7.79% Expense Ratio: 0.40%
10. Vanguard FTSE Europe ETF (VGK) - Performance 1 Yr: 17.72% Expense Ratio: 0.12%
11. iShares Russell 1000 Growth ETF (IWF) - Performance 1 Yr: 25.89% Expense Ratio: 0.20%
12. Vanguard FTSE All-World ex-US ETF (VEU) - Performance 1 Yr: 18.40% Expense Ratio: 0.15%
13. Vanguard Dividend Appreciation ETF (VIG) - Performance 1 Yr: 18.45% Expense Ratio: 0.10%
14. Vanguard FTSE Developed Markets ETF (VEA) - Performance 1 Yr: 16.80% Expense Ratio: 0.09%
15. iShares Russell 1000 Value ETF (IWD) - Performance 1 Yr: 24.07% Expense Ratio: 0.20%
16. iShares Russell 2000 ETF (IWM) - Performance 1 Yr: 17.62% Expense Ratio: 0.20%
17. iShares Core S&P Mid-Cap ETF (IJH) - Performance 1 Yr: 23.22% Expense Ratio: 0.14%
18. Vanguard S&P 500 ETF (VOO) - Performance 1 Yr: 25.33% Expense Ratio: 0.05%
19. Vanguard Total Bond Market ETF (BND) - Performance 1 Yr: 5.82% Expense Ratio: 0.08%
20. Financial Select Sector SPDR Fund (XLF) - Performance 1 Yr: 20.16% Expense Ratio: 0.16%
21. iShares Core U.S. Aggregate Bond ETF (AGG) - Performance 1 Yr: 5.88% Expense Ratio: 0.08%
22. iShares iBoxx Investment Grade Corporate Bond ETF (LQD) - Performance 1 Yr: 10.60% Expense Ratio: 0.15%
23. Vanguard Short-Term Bond ETF (BSV) - Performance 1 Yr: 1.70% Expense Ratio: 0.11%
24. SPDR S&P MIDCAP 400 ETF (MDY) - Performance 1 Yr: 22.89% Expense Ratio: 0.25%
25. Vanguard Growth ETF (VUG) - Performance 1 Yr: 27.37% Expense Ratio: 0.09%
26. Vanguard Value ETF (VTV) - Performance 1 Yr: 23.41% Expense Ratio: 0.09%
27. iShares MSCI Japan ETF (EWJ) - Performance 1 Yr: 10.11% Expense Ratio: 0.50%
28. iShares Select Dividend ETF (DVY) - Performance 1 Yr: 22.27% Expense Ratio: 0.40%
29. SPDR Technology Select Sector Fund (XLK) - Performance 1 Yr: 30.70% Expense Ratio: 0.16%
30. iShares Core S&P Small-Cap ETF (IJR) - Performance 1 Yr: 18.77% Expense Ratio: 0.14%

Updated on 9/10/2014