The 3 Best ETFs to Buy in May 2024


  • The best ETFs to buy in May offer a diversified, wide slice of long-term investment opportunities.
  • iShares U.S. Medical Devices ETF (IHI): Medical technology is a perennial growth sector.
  • iShares 0-5 Year High Yield Corporate Bond ETF (SHYG): “Higher for longer” is a good thing when you invest in this junk bond ETF.
  • iShares Global Tech ETF (NYSEARCA: IXN): This global ETF allows investors to diversify away from pure-US tech stocks.

best ETFs to buy in May - The 3 Best ETFs to Buy in May 2024

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Markets are increasingly volatile, making the “Sell in May and Go Away” mantra particularly relevant. But that comes with a hidden benefit — the opportunity to snag the best ETFs to buy in May for a discount.

These ETFs offer semi-diversified, long-term upside targeting specific sectors and long-term trends. While you would be forgiven for sticking spare change into an index fund ETF, remember that we’re also in a period of massive stock overconcentration across most indices. So, if just a handful of mega-cap stocks post poor earnings or bad news, you’re in for a world of hurt if you solely focus on indexed ETF investing.

Instead, spread your wings and diversify with the best ETFs to buy in May.

iShares U.S. Medical Devices ETF (IHI)

An image of two medical professionals performing a procedure on a patient
Source: Roman Zaiets /

Expense ratio: 0.40%, or $40 annually on a $10,000 investment

Choosing long-term investments in healthcare tech ETFs, such as the iShares U.S. Medical Devices ETF (NYSEARCA:IHI), simplifies tapping into the growth potential of both the tech and healthcare sectors. Both, of course, are among the most promising for future expansion. Analysts highlight healthcare as a key investment area for 2024 and beyond, and IHI blends major industry players with cutting-edge tech innovators. This mix strategically positions IHI to capitalize on the rapid evolution of HealthTech while maintaining stability through its roster of established companies.

The pace of innovation in fields like artificial intelligence and automation complicates selecting individual stocks with assured long-term growth, especially for those not intimately familiar with the nuances of the healthcare sector. The challenge is distinguishing between potential flops and scams like Theranos and genuine success stories like Intuitive Surgical (NASDAQ:ISRG). This complexity often makes the best ETFs to buy in May like IHI a preferred choice for investors looking to navigate the intricate healthcare tech landscape without assuming the risks of individual stock picks.

iShares 0-5 Year High Yield Corporate Bond ETF (SHYG)

Corporate Bonds
Source: Vitalii Vodolazskyi /

Expense ratio: 0.30%, or $30 annually on a $10,000 investment

Rates remain high, and bond yields are robust, boosting the appeal of riskier investments like junk bonds. In this climate, adding the iShares 0-5 Year High Yield Corporate Bond ETF (NYSEARCA:SHYG) to a portfolio of the best ETFs to buy in May can effectively balance the potential for capital gains from future rate cuts with steady income generation in the interim.

Currently, the ETF boasts a 30-day yield of 7.76%, and it has returned nearly 10% over the past year when distributions are included. Moreover, with a low beta of 0.60, the ETF provides some stability and cushioning against day-to-day market fluctuations that could otherwise introduce volatility into a portfolio.

The FedWatch tool points to the widespread expectation that rates will remain above 5% for the foreseeable future — further reinforcing SHYG as one of the best ETFs to buy in May for fixed-income investing opportunities.

iShares Global Tech ETF (IXN)

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Source: thinkhubstudio /

Expense ratio: 0.41%, or $41 on a $10,000 investment

While U.S. tech stocks often grab the spotlight, the iShares Global Tech ETF (NYSEARCA:IXN) allows investors to tap into the global tech market, providing exposure to international companies not listed on U.S. exchanges. Over the past year, IXN has delivered a 44% return, outperforming the S&P 500’s 31% and matching the Nasdaq-100’s performance. Despite their performance, international tech stocks frequently go unnoticed, positioning IXN as an excellent tool for geographic diversification.

IXN includes familiar tech giants such as Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) in its top holdings. However, its distinctive advantage over domestic tech ETFs lies in its inclusion of international firms like Samsung, Tokyo Electron (OTCMKTS:TOELY) and Ericsson. Although some of these companies are available on U.S. exchanges as ADRs or F-Shares, these formats can present issues with higher expense ratios and lower liquidity, which IXN effectively sidesteps.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at

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