Best ETFs and Worst ETFs – Takeaways
In last year’s wrap-up of the best ETFS, I said investors should “ride the momentum of financial services and home construction all the way through 2013 into 2014.” More specifically, I said the two best ETFs for those sectors were the iShares Dow Jones U.S. Financial Services Index Fund (IYG) and iShares Dow Jones U.S. Home Construction Index Fund (ITB).
They are up 41% and 12% respectively so far … so I was half right.
What are the best ETFs for 2014, then? Well, I think simplicity is the key. Don’t go making big bets on niche sectors, industries or countries. Instead, go for a few select core ETFs that spread the love around the world.
If I had to pick one bundle of stocks to top my personal list of the best ETFs, I would choose the Vanguard Total World Stock ETF (VT), which invests 48% of the fund’s $4.4 billion in net assets outside North America.
Here’s to 2014!
As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.