The meteoric rise in the popularity of ETF’s has caused us at Stockbrokers.com to take a closer look at this valuable investment option. As you can probably imagine, the increase in popularity in ETF’s has caused a stir in the world of finance. All of the financial institutions want to get a piece of the pie and be able to be called a leader in the ETF world. This competition has caused an increase in product offerings, which is terrific for investors. The different types of ETF classes have multiplied over the last few years. Let’s take a look at the top ten most popular ETF classes.
Top 10 ETF Classes
1. Index- The Spider ETF for the S&P 500 is what got the whole ETF ball rolling 1993, and it is still the ETF with the heaviest volume today. Index ETF’s are a great way to track a certain stock market index while still being able to liquidate your position at any time.
2. Commodities- The commodities world has always been a difficult one for the average investor to get involved in, that is at least until commodity ETF’s came around. Some of the most popular ETF’s track commodities such as oil, natural gas, silver, and gold. Many investors have fared extremely well by getting into commodity ETF’s in the past few years.
3. Foreign- Just as is the case in the commodity world, investing in foreign markets can be difficult. The ETF world has made investing in emerging markets and all foreign countries much easier. The IShares Emerging Market MSCI Index ETF is one of the top five most heavily traded ETF’s.
4. Inverse- The average bearish investor has normally had to go through many loop holes to be able to short the market, but with the help of the inverse ETF this is no longer the case. There are dozens of inverse ETF’s that will help you bet against the market as a whole, a certain sector, or even a certain country.
5. Sector- A sector ETF is now one of the best ways to try to capitalize on an upcoming move in a particular sector. The Financial Select Sector SPDR Fund is the second most heavily traded ETF, and ETF’s in areas such as retailers and pharmaceuticals are gaining in popularity.
6. Currency- Those investors who are well-versed in economics often have strong feelings about where certain world currencies are going to be trading in the future. Currency related ETF’s are available for all the major currencies in the world, and they allow the average investor to get involved quickly and easily.
7. Fixed-Income- Those investors who are looking for some stability in their portfolio are likely to look toward fixed-income product offerings. Fixed-income ETF’s will kick out a very nice yield and they can help diversify your investment portfolio.
8. Actively Managed- These are the new kids on the block in the ETF world. Actively managed ETF’s are being met with skepticism in some camps, but they are starting to gain traction with investors as the cost-efficiency of this investment is considered. Actively managed ETF’s are continuing to evolve, and they are changing the view investors view the ETF.
9. Dividend- If you are the type that likes dividend-paying stocks, but you want more diversification, the class of dividend ETF’s are likely for you. There are multiple options available that allow you to buy an ETF that owns a basket of high-dividend yielding stocks from different areas of the world.
10. Real-Estate- The Real-Estate Investment Trusts have hit the ETF world, and they are being met with mixed reviews. The high dividends are attractive, but many investors are wary of getting into the real estate market at this time. Still, the fact that these offerings are so readily available should be seen as a large positive for investors.
There is your list of the top 10 ETF classes available right now. These ETF classes have made investing in many assets much more convenient and affordable, which is great for the average investor! Read our online broker reviews to find out more information on what platforms would suit your investing needs.