Exchange-traded funds (ETFs) are investment funds that are traded on stock exchanges just like individual stocks. They are a type of mutual fund, but they have some key differences.
For one, ETFs can be bought and sold throughout the day, just like individual stocks. This makes them a popular choice for traders. They can also be bought and sold in retirement accounts, which makes them a popular choice for investors. Keep reading to learn more about the best ETFs to buy in 2022 via a questrade automatic ETF purchase.
The SPDR S&P 500 ETF (SPY)
There is a multitude of reasons why the SPDR S&P 500 ETF (SPY) is one of the best investments you can make in 2022. For starters, it offers a diversified mix of 500 large-cap U.S. stocks, which helps to reduce risk by spreading your money out across a number of different companies. Additionally, the SPY has a history of outperforming most other major indexes, including the Dow Jones Industrial Average (DJIA) and the NASDAQ Composite Index (COMP).
Since its inception in 1993, the SPY has generated an average annual return of 10.1%, compared to the DJIA’s average of 7.3% and the COMP’s average of 9.2%. And while there is always the potential for volatility in the stock market, the SPY has proven to be a relatively stable investment, with a standard deviation (a measure of volatility) of just 12.9%.
The Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) is one of the most popular and well-known exchange-traded funds (ETFs) on the market. And for good reason—it offers investors a simple, convenient way to invest in a broad swath of the U.S. market. But what makes the Vanguard Total Stock Market so compelling in 2022? Here are three reasons:
- It’s one of the cheapest options out there. One of the biggest advantages of this ETF one is its low expense ratio of just 0.05%. That means that for every $1,000 you invest, you’ll only pay $5 in fees each year. That’s a fraction of the cost of many other ETFs on the market, which can charge fees as high as 1% or more. So by investing in the Vanguard Total Stock Market ETF, you can keep more of your money working for you.
- It’s a well-diversified option. This ETF tracks the performance of the entire U.S. market. That means it’s a great option for investors who want to buy a little bit oerything. By investing in the this ETF, you’ll get exposure to large, mid, and small-cap stocks, as well as to growth and value stocks. And you’ll also benefit from exposure to both U.S. and international stocks.
- It’s a reliable performer. This ETF has a track record of outperforming the broader stock market over the long term. Since its inception in 2001, it has delivered an annualized return of 7.5%. That’s better than the return you would have achieved by investing in the S&P 500 Index, which has delivered an annualized return of 6.9% over the same period.
The iShares Core S&P Mid-Cap ETF (IJH)
When looking for potential investments, it’s important to find a company or fund that aligns with your specific goals and beliefs. The iShares Core S&P Mid-Cap ETF (IJH) is one of the best funds to buy in 2022 for a number of reasons.
The IJH fund follows the S&P Mid-Cap 400 Index, providing investors with exposure to 400 of the largest U.S. companies with a market cap of $2 billion or more. This mid-cap blend gives investors a mix of growth and stability, as the companies represented are typically more established and have a proven track record of success. The fund has a low expense ratio of 0.05%, making it one of the most affordable options available. Additionally, IJH is one of the most liquid funds, with an average daily trading volume of more than 1 million shares. This makes it easy to buy and sell on short notice, giving you more control over your investment.
The Vanguard FTSE Developed Markets ETF (VEA)
There are many reasons why the Vanguard FTSE Developed Markets ETF (VEA) is one of the best ETFs to buy in 2022. The first reason is that it is one of the most well-rounded and diversified ETFs on the market. The VEA portfolio consists of stocks from developed markets all over the world, including North America, Europe, and Asia. This gives investors broad exposure to some of the world’s most prosperous economies.
Another reason to buy the VEA in 2022 is that it is one of the lowest-cost ones available. The expense ratio for the VEA is just 0.07%, making it one of the cheapest ways to get broad exposure to the global market. Finally, the VEA is a good choice for investors because it is a very stable ETF. It has a historical volatility of just 11.5%, which is well below the average for most market ETFs. This makes the VEA a good choice for investors who are looking for a low-risk way to invest in the global market.
Overall, the best ETFs to buy in 2022 will be those that provide stability and growth potential. Investors should consider ETFs that offer a diversified mix of assets and exposure to different sectors and markets. Additionally, it is important to consider factors such as fees and expenses, risk, and performance when making investment decisions.