3 Supercharged ETFs to Buy Hand Over Fist for 2024

Exchange-traded funds (ETFs) are the world’s fastest-growing investment products. The reason for its growing popularity is simple. Because ETFs offer an easy and cost-effective way to gain exposure to specific themes or segments of the market. Although these investment vehicles rarely produce explosive returns like some stocks, their diversification factor makes them inherently less risky. Investors, on the other hand, can feel secure by owning a small number of ETFs.

How can I get the most out of my ETF investment? The answer to this question ultimately depends on your personal financial goals and investment style. But one proven and easy strategy is to own a basket of ETFs that provide exposure to key areas of value creation in the market. Specifically, you can buy three funds that cover large-cap, mid-cap, and small-cap stocks. These three funds, combined with a small number of low-risk bond funds, should provide returns that match or exceed the overall market over the long term.

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Which funds are best suited for this strategy? Below is a basic overview of the three best-performing ETFs in their respective categories.

Large cap growth

of Schwab U.S. Large Cap Growth ETF (SCHG -0.47%) is an ETF that invests in large-cap U.S. stocks with high growth potential. it is, Dow Jones U.S. Large Cap Growth Total Stock Market Index, selects companies based on characteristics such as sales and profit growth. SCHG has a very low expense ratio of 0.04%, which is 95.8% lower than the category average.this charles schwab The large-cap growth ETF also has a modest yield of 0.43%.

Since its inception in 2009, SCHG has achieved a total return (pre-tax, assuming distributions are reinvested) of 650%. For reference, the Vanguard equivalent of SCHG is Vanguard Growth Index Fund, achieved a total return of 602% over the same period. All of these large-cap U.S. funds are S&P500 It has come a long way over the past 13 years.

SCHG Total Return Level Data by YCharts

Growth of mid-cap stocks

of iShares Morningstar Midcap Growth ETF (IMCG -0.69%) is an ETF that invests in mid-cap U.S. companies whose earnings are expected to grow faster than the broader market. it is, Morningstar Medium Growth Index, owns stocks in companies with above-average growth potential. IMCG has a very low expense ratio of 0.06%, which is 87% lower than the category average. The yield is also modest at 0.9%.

This mid-cap fund has been one of the best performers in its category since its inception in 2004. At this point, IMCG is Vanguard Midcap Index Fund S&P 500 over the past 19 years and

^SPX data by YCharts

small cap value

of Avantis US Small Cap Value ETF (AVUV -1.15%) is an ETF that invests in U.S. small-cap stocks that are undervalued by the fund’s manager. Unlike his other two funds discussed above, AVUV is an actively managed fund. Its performance benchmark is Russell 2000 Value Index.

However, this fund does not track any particular underlying index. AVUV’s expense ratio is 0.25%, which is extremely low for an actively managed fund. Since the start of 2019, it has significantly outperformed both markets. Vanguard Small Cap Value Index And the S&P500.

^SPX data by YCharts

And despite being a small-cap fund, AVUV still boasts a fairly generous yield of 1.83%. AVUV thus offers an attractive combination of income, low rates, and above-average performance.