Investing
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ETFs have generated higher returns than mutual funds.
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GLD, VYM, and QQQ have the potential to outpace S&P 500.
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2025 hasn’t been a smooth ride. The economy has seen volatility, the market has seen several ups and downs, and investors are scrambling to look for low-risk options to invest their money. There are concerns about the impact of tariffs, and consumer spending is low.
With thousands of ETFs to choose from, it can become overwhelming, and the industry is getting more crowded. Here are the top 3 I invested in.
SPDR Gold Shares
It is easier for me to pay the annual management fee as compared to buying and storing gold bullion. This ETF has become a centrepiece of my portfolio.
Vanguard High Dividend Yield Index ETF
VYM has a yield of 2.57% and holds 582 stocks. The sector distribution includes:
- Financials: 21.50%
- Industrials: 13.40%
- Technology: 12.30%
- Healthcare: 12.10%
It holds some of the biggest dividend paying companies in the top 10, including Walmart, AbbVie, Johnson & Johnson, and Exxon Mobil. The ETF pays quarterly dividends, and the strong portfolio allows it to remain consistent at it.
Invesco QQQ Trust (QQQ)
QQQ tracks the performance of the Nasdaq 100 index and has the 100 largest companies listed on the stock exchange. It aims for high growth while providing exposure to the best U.S. non-financial companies.
It is a tech-focused ETF with over 50% allocation to tech stocks, followed by 19.66% in consumer staples and 5.80% in healthcare. It is top heavy with the 10 holdings making up 51% of the portfolio and these include the Magnificent Seven like Nvidia, Alphabet, Tesla, Meta Platforms, Amazon, and Apple.
Slightly on the expensive side, QQQ has an NAV of 530.82 and is up 16% in 12 months. The NAV has soared over 100% in the past five years, generating impressive gains for investors. As long as the tech sector continues to expand, QQQ is set to benefit.
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