Bullish Buying Opportunity: 3 ETFs to Scoop Up With $5,000


  • Below are the top three ETFs to buy if you have $5,000 to spare. 
  • SPDR S&P 500 ETF (SPY): Whether you are a beginner or an advanced investor, you cannot go wrong with the S&P 500 Index
  • Vanguard Total Stock Market Index (VTI): Gain broad exposure to the entire U.S. stock market. 
  • Technology Select Sector ETF (XLK): This is best for exposure to the U.S. technology sector.
ETFs to buy - Bullish Buying Opportunity: 3 ETFs to Scoop Up With $5,000

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Exchange-traded funds (ETFs) have revolutionized the way investors approach the stock market. This makes the case for the best ETFs to buy in 2024. For those looking to invest $5,000 strategically, ETFs present a compelling opportunity for growth and diversification. 

With a plethora of options available, the selection process can become extremely daunting. That is because, on the surface, investing can seem extremely risky. Additionally, there are many different ETFs tailored to different sectors of the market that some investors may understand better than others. With a sound strategy, due diligence and a strategic approach, investors can be on their way to building long-term wealth in the stock market.

Now, let’s unpack the top three ETFs to buy with $5,000 in May 2024!


S&P 500 block letters displayed on a light blue background. SPY stock.
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SPDR S&P 500 ETF (NYSEARCA:SPY) is a cornerstone of many investment portfolios that seeks to track the performance of the S&P 500 Index. This index encompasses 500 of the largest U.S. companies, offering broad exposure to the U.S. equity markets. 

If you are a beginner or even an advanced investor in the stock market, the S&P 500 Index is always a great place to start. With a low expense ratio of 0.0945%, SPY is a cost-effective way to gain diversified exposure to a wide range of industries. This includes technology, healthcare, financials, consumer discretionary and more. Additionally, the fund holds some of the largest technology companies in the world. Many of them are on the cutting edge of new technologies like artificial intelligence. The ETF’s top five largest holdings include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META). SPY can be a great way to bet on the U.S. economy without putting all your eggs into one basket. This is certainly one of the best and most desirable ETFs to buy in 2024 and beyond.

Vanguard Total Stock Market Index (VTI)

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Vanguard Total Stock Market Index Fund (NYSEARCA:VTI), another ETF alternative, is for investors seeking a broader exposure to the U.S. equity market. VTI tracks the CRSP U.S. Total Market Index, encompassing nearly 4,000 stocks across all market capitalizations.

Investors will find a lot of value in having more broad exposure to the entire U.S. stock market. VTI is a great way to benefit from the long-term upside potential of small, mid-cap and large-cap companies in the United States. This ETF has demonstrated consistent growth and resilience over the last several decades. With an expense ratio of 0.03%, VTI allows investors to capture the entire U.S. stock market’s performance for a relatively low cost. The fund’s top five largest holdings include Microsoft, Apple, Nvidia, Amazon and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). This ETF is well suited for investors who believe in the long-term growth of the U.S. economy and seek a simple, diversified approach to investing.

Technology Select Sector ETF (XLK)

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Technology Select Sector ETF (NYSEARCA:XLK) is the final ETF for investors with a higher risk tolerance and strong belief in the technology sector. XLK tracks the Technology Select Sector Index, which includes various technology companies across various subsectors, including software, semiconductors, IT and hardware. 

While the technology sector can be volatile, it is without a doubt that it can provide investors with the highest returns. It has historically outperformed the broader market over the long term, driven by innovation and increased demand for technology solutions. With an expense ratio of 0.09%, XLK provides a strategic way to participate in the growth of this sector. The fund’s top five largest holdings include Microsoft, Apple, Nvidia, Broadcom (NASDAQ:AVGO) and Advanced Micro Devices (NASDAQ:AMD). Additionally, nearly 90% of the fund’s industry allocation is towards software, semiconductors & equipment and technology storage & hardware. While the fund has outpaced the S&P 500 in 2024, investors should be prepared for potential short-term volatility. If you have tough skin and are willing to ride the waves, XLK is one of the best ETFs to buy as part of a diversified portfolio.  

On the date of publication, Terel Miles held a position in SPY. Terel Miles did not hold (either directly or indirectly) any other positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/bullish-buying-opportunity-3-etfs-to-scoop-up-with-5000/.

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