The 10 best ETFs on the planet don’t have much in common, but they do share two traits:
- They’ll rarely be the 100%, exact, best, perfect ETF for any given moment.
- They’re all still pretty darn great regardless.
The U.S. exchange-traded fund and exchange-traded product world is closing in on 2,000 strong. As of June 2016, the country boasted 1,931 ETFs and ETPs that had amassed more than $2.2 trillion in assets, according to research and consultancy firm ETFGI.
That sheer wealth of product diversity means that there’s an ETF for just about every niche in the investable market. If you can think of it, it probably exists. And if you happen to jump into it at the perfect moment, you’ll make a killing.
But most of us aren’t market timers. We’re investors who might pull off a swing trade or two in our brokerage account, but for the most part, we’re buy-and-holders that have a limited amount of money that we need to simply let ride for a while. Thus, the best ETFs for us are going to be funds that are built for longer-term performance.
You can get there in several ways. Some ETFs are simply designed to perform well in just about any kind of market environment. Other ETFs are just perfectly targeted plays on established mega-trends that should continue to run for the next few years. A few great ETFs aren’t even geared toward sheer outperformance, but simply achieving good performance while minimizing risk.
We’ll look at some of each kind in this list of the world’s 10 best ETFs: