Although the market volatility is worrying investors, it’s also fair to point out that some of the biggest gains can be made by zigging while others are zagging. Even better, you can spread out your risk through exchange-traded funds (ETFs) instead of picking individual stocks. In turn, ambiguous circumstances may favor the best ETFs for bargain hunters.
For one thing, putting your money into an individual company always ramps up the underlying risk profile. Despite electing a viable industry, for instance, you just never know what might happen with your specific idea. With the best ETFs, however, you can distribute your risk across a wide canvas, thus mitigating the potential that one bad apple could spoil the whole crate.
Another reason to focus your efforts on finding the best ETFs to buy is the overriding risk-off sentiment. With so many market segments awash in red ink, the chances of you finding just the right individual idea are slim. Instead, present economic dynamics suggest that you should go with sector funds, improving your odds for buying winners.
| QQQ | Invesco QQQ Trust | $284.16 |
| VOT | Vanguard Mid-Cap Growth Index Fund ETF | $178.50 |
| IPO | Renaissance IPO ETF | $28.36 |
| BITO | ProShares Bitcoin Strategy ETF | $18.17 |
Best ETFs to Buy Now: Invesco QQQ Trust (QQQ)
When digging through the bargain bin for the best ETFs, it’s important not to just focus on the price. Rather, you want to find funds that feature relatively robust trading volume. Otherwise, your money could end up going to feed zombie ETFs or funds that feature little interest and therefore low activity.
Never say never but you probably won’t have to worry about the Invesco QQQ Trust (NASDAQ:QQQ) joining the ranks of the undead. Featuring a volume level of nearly 91 million shares, QQQ is rarely if ever short on traders. More importantly, Invesco QQQ counts among its core holdings some of the world’s leading technology firms.
In the spirit of full disclosure, some of the companies are names that I’m a bit skeptical about. However, there are plenty of enterprises that, over the long run, should prove to be incredibly viable. Therefore, QQQ is one of the best ETFs to buy if you’re seeking a bargain.
Vanguard Mid-Cap Growth Index Fund ETF (VOT)
Typically, mid-capitalization stocks provide an attractive balance between proven stability and upside growth potential. It’s not always healthy to be fully on one side of the spectrum or the other, making the Vanguard Mid-Cap Growth Index Fund ETF (NYSEARCA:VOT) an appropriate choice for investors feeling things out.
Nevertheless, the broader market volatility has not been too kind to VOT stock. Year-to-date (YTD), the mid-cap ETF has declined by almost 30%, noticeably more than the benchmark SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which has declined 18.1% during the same period. However, for the patient investor, once circumstances eventually normalize, the upside potential for VOT should be distinctly greater.
As the name of the ETF implies, VOT is well balanced. It features the heaviest exposure to tech, providing the growth potential. However…
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