Top 4 Exchange-Traded Funds to Watch in 2024
Explore the top ETFs to consider for your investment portfolio in 2024. This guide covers healthcare, water infrastructure, and biotech funds, highlighting their benefits, risks, and potential for growth. Perfect for investors seeking diversification and steady returns amidst market volatility.
Top 4 ETFs to Watch in 2024
Investors are increasingly turning to exchange-traded funds (ETFs) for their investment portfolios. ETFs offer advantages such as higher liquidity and lower fees compared to traditional mutual funds, making them an attractive choice.
Trading like stocks, ETFs can be quite volatile due to active market trading. With approximately 19,000 ETFs available nationwide, selecting the right ones can be challenging. Here are four top ETFs to consider in 2024.
Vanguard Healthcare ETF
As the second-largest ETF provider in the U.S., Vanguard offers a solid healthcare ETF. The healthcare sector continues to grow steadily, driven by rising medical costs and ongoing innovations. Investing in Vanguard Healthcare provides exposure to over 380 companies, including giants like Johnson & Johnson, UnitedHealth Group, and Merck.
This ETF carries a lower-than-average risk profile and has an expense ratio of just 0.1%, costing about $10 annually for every $10,000 invested.
Tortoise Water Infrastructure Fund
Amid increasing droughts and climate challenges, water infrastructure companies are thriving. Launched in 2018, this lesser-known fund focuses on firms building, maintaining, and treating water systems. Major holdings include Pentair and Aqua America. The expense ratio stands around 0.4%. While not as large as tech giants, this ETF presents a promising long-term investment opportunity in the water sector.
Loncar Cancer Immunotherapy ETF
Focusing on innovative cancer treatments, this niche healthcare ETF invests in 30 biotech and pharmaceutical companies, including Merck, Novartis, and MorphoSys. Given the high risks associated with clinical trial outcomes, it’s suitable for investors with a higher risk tolerance. Despite this, the long-term potential is significant. The ETF has an expense ratio of approximately 0.79%.
Young investors and entrepreneurs often consider ETFs for their affordability and diversification. Selecting the right ETF requires careful market monitoring and research. While there are no guarantees of profits, educated decisions can minimize risks. Consulting professionals or experienced investors can help identify the best ETFs for your financial goals.
