Exchange-traded funds (ETFs) have become increasingly popular among investors as they offer exposure to a diverse range of assets such as stocks, bonds, commodities, and currencies. ETFs are similar to mutual funds but trade on an exchange like a stock. They are also known for their low fees and ease of use. In this article, we will discuss some of the popular ETFs and their performance.
SPDR S&P 500 ETF (SPY)
Initiation Date: January 22, 1993
Starting Price: $43.38
Current Price (as of March 6, 2023): $441.81
If you had invested $1,000 in SPY at its initiation, your investment would be worth approximately $25,427 today (including dividends).
SPY is an ETF that tracks the performance of the S&P 500 index, which represents the 500 largest publicly traded companies in the United States. It has an expense ratio of 0.09% and is one of the oldest and largest ETFs in the market.
Invesco QQQ ETF (QQQ)
Initiation Date: March 10, 1999
Starting Price: $28.70
Current Price: $403.69
If you had invested $1,000 in QQQ at its initiation, your investment would be worth approximately $14,065 today (including dividends).
QQQ is an ETF that tracks the performance of the Nasdaq-100 index, which represents the largest non-financial companies listed on the Nasdaq stock exchange. It has an expense ratio of 0.20% and is popular among investors looking for exposure to technology and growth companies.
iShares Core MSCI EAFE ETF (IEFA)
Initiation Date: October 20, 2010
Starting Price: $50.00
Current Price: $85.34
If you had invested $1,000 in IEFA at its initiation, your investment would be worth approximately $1,706 today (including dividends).
IEFA is an ETF that tracks the performance of the MSCI EAFE index, which represents the performance of large and mid-cap stocks from developed markets outside of North America. It has an expense ratio of 0.08% and is popular among investors looking for exposure to international stocks.
Vanguard Total Stock Market ETF (VTI)
Initiation Date: May 24, 2001
Starting Price: $25.12
Current Price: $256.78
If you had invested $1,000 in VTI at its initiation, your investment would be worth approximately $11,415 today (including dividends).
VTI is an ETF that tracks the performance of the CRSP US Total Market index, which represents the performance of the US stock market, including large, mid, and small-cap companies. It has an expense ratio of 0.03% and is popular among investors looking for broad exposure to the US stock market.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
Initiation Date: July 22, 2002
Starting Price: $109.20
Current Price: $133.97
If you had invested $1,000 in LQD at its initiation, your investment would be worth approximately $1,998 today (including dividends).
LQD is an ETF that tracks the performance of the iBoxx $ Investment Grade Corporate Bond index, which represents investment-grade corporate bonds issued by US companies. It has an expense ratio of 0.15% and is popular among investors looking for exposure to investment-grade corporate bonds.
ETFs are a popular investment option among investors due to their low fees, ease of use.
Disclaimer: It’s important to note that the results of $1,000 invested in the ETFs mentioned above may vary slightly depending on how you calculate the reinvested dividends. Dividend reinvestment is the process of taking the dividends paid by the ETF and using them to purchase additional shares, which can increase the overall return on investment. However, the actual value of the dividends and the timing of reinvestment may differ depending on the calculation method used. Therefore, it’s essential to keep this in mind while comparing the returns of different ETFs.