AvaTrade Top ETFs
Our "Top ETFs" section gives you all the information you need to start trading on the most traded ETFs (Exchange Traded Funds) in the market with confidence. AvaTrade will guide you to the most famous ETF to trade with, according to your needs. Be ready to be amazed about what Funds can represent in the trading online market and how many opportunities you can find. Welcome to AvaTrade
Market Vectors TR Gold Miners
The VanEck Vectors Gold Miners ETF (GDX) is a managed fund that is designed to provide investors with exposure to global gold mining companies. It seeks to replicate the yield and price performance of the NYSE Arca Gold Miners Index (GDMNTR), as closely as possible, before fees and expenses, and it tracks the overall performance of companies involved in the gold mining industry.
Energy Select Sector SPDR
Energy Select Sector SPDR Fund (NYSEARCA: XLE), commonly known as the Energy Sector XLE, is a U.S. Energy sector index with a strong emphasis on the oil industry. It measures the aggregated performance of 28 large-cap oil and gas companies listed in the S&P500 with a total market capitalisation over $3.5 billion.
MSCI Brazil Index Fund
MSCI Brazil Index (NYSEARCA: EWZ) is a stock market index which monitors 55 large-cap and mid-cap stocks in the BOVESPA Stock Exchange in Sao Paulo and accounts for 85% of the total market value of all Brazilian stocks. It is traded as an ETF in the NYSE Arca under the ticker EWZ.
MSCI Emerging Markets Index Fund
MSCI Emerging Markets Index (NYSEARCA: EEM) is a benchmark index which measures the aggregated performance of over 1200 equities in 26 emerging markets like Brazil, Russia, India, and China (known together as BRIC). Morgan Stanley Capital International created the Emerging Markets Index (EEM) in 1988 to monitor the progress of large and mid-cap size companies initially in 10 developing countries.
Dow Jones U.S. Home Construction Index Fund
The ITB is structured to deliver investment results similar to the performance of the Dow Jones (US30) Select Home Construction index. The index is a market-breadth indicator, and in addition to home construction companies, it also features constituents involved in home improvement as well as speciality chemicals.
Financial Select Sector SPDR
The Financial Select Sector SPDR (XLF) is an ETF designed to offer investors exposure to the broader financial sector of the US500 index. The biggest and most influential companies that offer various financial services in the U.S. are captured in this fund. The XLF has been structured to deliver investment results that mirror the performance of the Financial Select Sector Index.
S&P 500 VIX Short-Term Futures ETN
The VXX is the largest and most liquid volatility ETN (electronically traded note) in the world. There is always a misconception that VXX and VIX are one and the same, but while they have a relationship, they are conceptually very different. The VIX is a ticker for the CBOE Volatility Index and is basically a measure of the market’s expectation of near-term volatility of the prices of S&P500 index (US500) options.
Dow Jones U.S. Real Estate Index Fund
The iShares US Real Estate (IYR) ETF is designed to track the performance of the Dow Jones US Real Estate Index. This index offers exposure to Real Estate Investment Trusts (REITs), as well as other companies that invest directly or indirectly in the US real estate sector.
S&P 500 SPDR
The SPY ETF is one of the oldest and most popular ETF. It is designed to track the S&P500, itself, the biggest index in the world. The S&P 500 acts as the benchmark stock market index of the United States and the SPY ETF fully replicates its movement.
Materials Select Sector SPDR
The Materials Select Sector SPDR (XLB) is an ETF designed to offer investors exposure to the broad materials sector of the S&P500 index. The XLB serves as the benchmark materials ETF in the US equity markets and allows investors to achieve targeted results in a potentially lucrative sector.
ProShares Bitcoin Strategy ETF (BITO)
The ProShares Bitcoin Strategy ETF (BITO) is designed to expose investors to the lucrative performance of Bitcoin. BITO is the first-ever Bitcoin-related ETF in the US that seeks to provide returns that correspond to the implementation of Bitcoin in the spot market. The BITO ETF does not hold or directly invest in Bitcoin, though; it actively invests in Bitcoin futures contracts. BITO provides a convenient route for investors to access Bitcoin returns via the liquid, transparent, and tax-efficient ETF market rather than deal with the hassles of owning and securing the cryptocurrency themselves.
Frequently Asked Questions about Top ETFs
- What are the expected long-term returns on the best ETFs?
Long-term investors are not concerned about short-term volatility. That means that market corrections are largely ignored. Long-term ETF holders focus on the big picture. ETFs function similarly to mutual funds since they comprise multiple financial instruments. Given their low expense ratio, it is possible to generate sizeable returns over the long-term. A good way to generate a larger ROI is by keeping ETF costs to a minimum. When investing in ETFs, it's the constituent components that are important. Picking top stocks in a booming sector can prove especially lucrative. Yields of 10% - 20% per annum are considered significant.
- Why should I trade ETF CFDs online?
The major benefit of trading ETF CFDs is that you're buying a contract for difference which derives its price from the ETF. By doing so, you can open trades in either direction – bullish or bearish – and generate returns by speculating correctly. Provided your assessment of the ETF is correct, you can benefit from price movements either way. You can go short on the ETF if you believe prices will go down, or you can go long on the ETF if you believe prices will rise. With ETFs CFDs, leverage can magnify your gains. But losses can also result.
- What types of imbalances are there in ETF prices?
By definition, an ETF is a fund which is made up of different financial instruments. The ETF is priced according to the performance of the Net Asset Value (NAV) of its constituents. The price of an ETF is determined by the spread, or the commission that brings buyers and sellers together. The NAV of an ETF is an important marker. If the market price of the ETF is higher than the NAV, then the ETF is trading at a premium. If the NAV is higher than the ETF price, the ETF is trading at a discount.