The 10 Best ETFs To Buy For 2018

best 2018 etf
In the wake of legislation that dramatically lowered corporate tax rates, PXLG is one of the few no-brainers on the best ETFs to buy for 2018 list. The fund is a growth-oriented basket of smaller companies - the kinds of businesses that stand to gain the most if the promise of economic growth and lower taxes holds true. Smaller U.S. companies typically make most of their revenue here at home, so domestic reforms will benefit them in a big way. Furthermore, smaller companies are more agile and can seize opportunities much faster than lumbering mega-corporations.

That’s not even the best part, though. This is: each and every one of these 5 CEFs trades at a massive-and totally unusual-discount to NAV that simply can’t last. 32,800 yearly cash stream. 80,000 in price gains too. And because you’re getting most of your return in CASH, you’ve got some nice insulation from volatility here. Funny thing is, you won’t hear a whisper about these 5 obscure wealth builders from Wall Street.

They’d much rather steer you into an ETF, like the SPDR S&P 500 ETF (SPY), an “automatic” fund that simply tracks the benchmark index (or maybe one of the tech ETFs I mentioned earlier). It’s a lot easier for them, because they don’t have to do a smidgen of research, and they get paid anyway. That’s great for them, but terrible for you.

Because if you follow their “advice,” you’ll be stuck “grinding it out” on the pathetic sub-2% dividends many ETFs dribble out today. That’s no way to fund your retirement, and it’s exactly why I rolled out these 5 incredible 8.2%-paying CEFs now. I can’t wait to show them to you. All you have to do is CLICK HERE to get instant access to the name, ticker symbol, buy-under price and my complete research on every single one of these 5 cash machines!

Mid-Cap Growth Index, and it has 164 of them in its portfolio as of this writing. The general idea of investing in mid-cap growth stocks is that they'll have higher long-term growth potential than large-cap growth stocks, but won't be quite as volatile and risky as small caps. To give you an idea of the types of companies we're talking about, the fund's five largest holdings as of March 31, 2018 are Fiserv, Edwards Lifesciences, Roper Technologies, ServiceNow, and Autodesk. As the name implies, the Vanguard Mega Cap Growth ETF focuses on the largest of the large U.S.

CRSP U.S. Mega Cap Growth Index. The fund only owns 131 stocks as of March 31, 2018, which is less than half of the previously discussed Vanguard Growth ETF. The fund's top holdings are roughly the same as the other large-cap growth funds mentioned here. The key difference between the Mega Cap ETF and the others is its high concentration -- that is, its relatively low diversification, especially among the largest stocks. The 10 stocks I just mentioned make up a whopping 38.7% of the Vanguard Mega Cap Growth ETF's assets.

By comparison, the Vanguard Growth ETF's top 10 holdings make up 31.8% of its total assets, while this drops to just 14.4% for the Vanguard mid-cap fund and less than 7% for the iShares Russell 2000 Growth ETF. If you invest in the Vanguard Mega Cap Growth ETF, your performance will be highly dependent on a small basket of large holdings. In other words, if you're especially confident in stocks like Apple, Alphabet, and the others on the list, then this could be a good fit for you.

On the other hand, if you aren't comfortable being so reliant on your fund's largest positions, you may be better off looking elsewhere. So far, all of the ETFs discussed here have focused on U.S. However, it can often be a good idea to add geographical diversification to your portfolio by investing in an international stock fund. International stock exposure can help protect you from U.S.-specific issues, as well as exchange-rate fluctuations. For growth investors, the iShares MSCI EAFE Growth ETF may be a good option.

This ETF invests in an index of non-U.S. 541 different companies as of this writing. Geographically, Japan is the most represented foreign market with 24% of the fund's assets, and there are also high concentrations of companies based in the U.K., France, Germany, Switzerland, Australia, and the Netherlands. No other nation makes up more than 4% of the fund's stocks.



Which is best for you, There's no one-size-fits-all growth ETF for everyone. That's why I chose to discuss seven different options in this article. The best choice (or choices) for you depends on your risk tolerance, time horizon, investing goals, and diversification needs. For example, if you already own stocks like Amazon and Facebook in your stock portfolio, then a small-cap growth ETF can give you exposure to smaller companies as well.

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