Top Trending ETFs You Should Consider Investing In

This article explores popular ETFs worth considering for investment in 2017. It highlights various funds across sectors such as technology, biotech, banking, and bonds, emphasizing low costs and tracking efficiency. The overview provides valuable insights for investors looking to diversify their portfolios with cost-effective ETFs. A helpful guide for beginners and experienced investors alike, the article recommends several top funds, explaining their focus, expenses, and potential benefits in a concise manner.

An exchange-traded fund (ETF) is a type of investment that tracks an index and offers investors low-cost exposure to the markets. Unlike traditional index funds, ETFs can be traded without commissions, similar to stocks, making them a popular choice for cost-conscious investors. They function much like mutual funds but are listed on major stock exchanges. Since their debut in 1993, ETFs have gained immense popularity, with over $2 trillion invested worldwide.

By 2015, the ETF market offered around 1,800 different funds covering various sectors, strategies, and niches. The key to a good ETF is low expense ratios, which impact long-term returns, and effective tracking of the underlying index. Here are some notable ETFs to watch in 2017:

• Vanguard S&P 500 ETF (VOO): Designed to mirror the S&P 500 index, this ETF offers access to major U.S. companies like Apple and ExxonMobil at a minimal cost—about 0.05% annually—and provides dividends of around 2%.
• iShares Nasdaq Biotechnology ETF (IBB): This ETF includes top biotech firms like Celgene and Biogen. Amid regulatory changes, biotech stocks have rebounded, with expenses at 0.47%.
• SPDR S&P Regional Banking ETF (KRE): Benefiting from potential rate hikes by the Federal Reserve, this fund focuses on regional banks such as KeyCorp and Citizens Financial, with an expense ratio of 0.35%.
• VanEck Vectors Semiconductor ETF (SMH): As core players in tech, semiconductor companies like Intel and Taiwan Semiconductor drive innovation. This ETF houses 26 stocks with expenses at 0.35%.
• Global X Robotics & Artificial Intelligence ETF (BOTZ): Investing in automation and AI, BOTZ includes companies involved in autonomous vehicles and industrial robots, with costs at 0.68%.
• iShares U.S. Preferred Stock ETF (PFF): Offering exposure to preferred shares, mainly from firms like Wells Fargo and HSBC, PFF charges 0.47% annually.
• SPDR Bloomberg Barclays High-Yield Bond ETF (JNK): Focused on high-yield bonds from industrial firms, JNK offers a 6% yield and a 0.4% expense ratio, holding around 800 bonds including Sprint and Western Digital.

According to Forbes, other top ETFs in 2017 include OIH, MUB, PSI, TLT, ITA, XAR, PPA, and GDX. Additional promising options are VB, IUSG, SCHV, VEA, SCHE, VYM, VGLT, and ITR. This list provides a solid starting point, though it isn't exhaustive.