Best ETFs to invest in today: complete and updated ranking

 Buying the best ETFs has become an increasingly popular activity for experts and successful investors. The returns that certain exchange traded funds have generated in recent years have led many to approach this innovative stock market sector.

An ETF is a managed fund that aims and invests in a specific sector (for example energy, technology and so on), on a commodity, or on other reference indices, reflecting its performance directly.

Searching for the potentially best ones is therefore an important process, which allows you to avoid blindly selecting ETFs . Considering that today there are over 8,000 ETFs, it is essential to know how to choose only the most interesting ones.

In this regard, we immediately propose some of the best exchange traded funds divided by category and sector of interest. For completeness, you will also find the best online brokers, such as eToro, which allow you to invest in ETFs independently.

What are ETFs?

Let's briefly try to summarize the concept of ETF , an acronym that stands for exchange traded fund . As mentioned above, an ETF is an investment fund that is listed on a regulated exchange and therefore traded like a normal share.

It mirrors the performance of a stock, bond, commodity index and so on.

ETFs can also belong to two distinct types:

1. Physical ETFs , which invest directly in the underlying asset (for example by actually purchasing a commodity);
2. Synthetic ETFs , which do not hold the stocks in the index, or any commodity, physically and directly, based on replication only.

What drives many investors to approach this market segment - and therefore to look for the best ETFs to buy - are precisely the main characteristics that distinguish these assets from other instruments.

ETFs show themselves:

• simple, since being passive products, they are limited to copying the performance of an index;
• flexible, as they do not expire and can always be sold after purchase;
• transparent, because they replicate a known index or asset, always showing what you are going to invest in;
• great for portfolio diversification.

Best ETFs to Keep in Portfolio in 2022

ETFs to keep in your portfolio	36-month risk return	Ticker
ARK Innovation	–	ARKK
Vanguard S&P 500	0.58	VUAA
Lyxor Core MSCI World	0.52	LCUW
SPDR S&P US Energy Select Sector UCITS	0.35	SXLE

The table above details the top 4 best ETFs to hold in the portfolio in 2022 and which have shown increasing returns over the last few years. These are exchange traded funds widely analyzed in the sector and with excellent diversification.

We certainly know that historical returns do not represent certainties for future returns, even if studying the results obtained over time allows you to verify whether the management of the fund has been carried out in a professional, but above all profitable way.

1) ARK Innovation

It is one of the most famous funds in the world, managed by the well-known company ARK Invest . It integrates a basket of equities sharing the same segment, namely that of disruptive innovation.

More than 50% of the instruments present are represented by equities, such as Tesla, Roku, Coinbase and many others. From January 2018 to January 2021, it doubled in value, and then contracted in the early stages of 2022.

2) Vanguard S&P 500

It is one of the best known ETFs in the world and which, as indicated by the term itself, focuses on the well-known S&P 500 index. The same integrates the 500 most capitalized US companies with the highest trading volume.

The index is obviously re-evaluated and modified continuously, excluding and integrating new companies if they are deserving. By investing in this ETF you will simply have to check its performance, which over the last 3 years has marked an excellent + 70%.

3) Lyxor Core MSCI World

Also in this case we are dealing with a global ETF , which integrates equities with record turnover and companies with colossal capitalizations. It is usually considered less volatile (to the extent possible) than other ETFs.

It has a much lower cost than other exchange traded funds mentioned (such as the ARK one) and shows exposure to the likes of Apple, Microsoft, Amazon, Tesla, Alphabet, Nvidia and many more.

4) SPDR S&P US Energy Select Sector UCITS

It is a one-of-a-kind ETF that replicates the US energy sector, which as we all know is one of the largest in the world. Inside it is possible to identify an exposure on companies such as Exxon, Occidental, Marathon Petroleum and many others.

After a negative return result highlighted in 2020 (also given the difficulties of the period), 2021 and the first months of 2022 both saw returns above 40% on a total basis. It can therefore be considered one of the potential best historical ETFs.

Best Stock ETFs

Stock ETFs	36-month risk return	ISIN
SPDR S&P US Energy Select Sector	0.35	IE00BWBXM492
iShares S&P 500 Energy Sector	0.34	IE00B42NKQ00
Xtrackers MSCI USA Energy	0.31	IE00BCHWNS19
Amundi ETF MSCI World Energy	0.25	LU1681046188
Amundi ETF MSCI Europe Energy	0.11	FR0010930644
iShares Oil & Gas Exploration & Production	0.38	IE00B6R51Z18
Xtrackers MSCI Europe Energy ESG Screened	0.14	LU0292101796

The list above shows the 7 best equity ETFs . Talking about equity ETFs means talking about funds that track indices made up of dozens of shares. Each ETF can be thematic and refer to specific sectors of interest.

In the following paragraphs we will have the opportunity to focus attention on specific market segments. The ETFs highlighted in the table, on the other hand, were selected without distinction, representing those with the highest historical returns and among the most analyzed.

The advantage of investing in equity ETFs is mainly that of exposing yourself to a very diversified basket, without looking for individual stocks and thus creating your own portfolio to be updated and manually balanced over time.

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Best ETFs with higher dividends

ETFs with high dividends	Dividend yield	ISIN
Vanguard FTSE All-World High Dividend Yield	3.88%	IE00B8GKDB10
iShares Dow Jones US Select Dividend	2.33%	DE000A0D8Q49
VanEck Morningstar Developed Markets Dividend Leaders	2.26%	NL0011683594
Xtrackers STOXX Global Select Dividend 100	4.59%	LU0292096186
SPDR S&P US Dividend Aristocrats	1.66%	IE00BYTH5R14

Above you will find a complete and up-to-date list of the ETFs with the highest dividend yield . It is good to consider that the dividend represents an additional source of profit for the investor, to be added to the results of the fund itself.

Going in search of the best dividend ETFs therefore allows you to benefit from a possible double return, a bit like with stocks with higher dividends . However, always consider the possibility that the dividend will not be paid, or that it will change over time.

Best renewable energy ETFs

Renewable energy ETFs	36-month risk return	ISIN
iShares Global Clean Energy	0.81	IE00B1XNHC34
Lyxor MSCI New Energy ESG Filtered (DR)	0.63	FR0010524777
L&G Clean Energy	–	IE00BK5BCH80
First Trust Nasdaq Clean Edge Green Energy	–	IE00BDBRT036

The proposed table highlights the best renewable energy ETFs , i.e. managed funds that invest and focus on the world of environmental sustainability and the ESG segment. Also called environmental, social and governance ETFs, they are among the most analyzed in recent times.

What are they specifically investing in? You can find ETFs composed of the main companies operating in the renewables market (production or sale of devices for the creation / generation of energy), as well as automotive companies on the electric and much more.

With the new environmental policies, more and more states have decided to focus attention on green aspects. This makes this sector one of the most interesting for the future and investing today means potentially playing well in advance, safeguarding the environment.

Best healthcare ETFs

ETF healthcare	36-month risk return	ISIN
Xtrackers MSCI World Health Care	0.78	IE00BM67HK77
Invesco Nasdaq Biotech	0.22	IE00BQ70R696
iShares Healthcare Innovation	0.29	IE00BYZK4776
L&G Healthcare Breakthrough	0.34	IE00BK5BC677
Lyxor MSCI World Health Care TR	0.79	LU0533033238
SPDR MSCI World Health Care	0.77	IE00BYTRRB94

Another very interesting sector is that of health (healthcare). The best healthcare ETFs are managed funds that invest and target pharmaceutical companies, companies that make medical machinery, companies that create vaccines and much more.

A sector that has become widely examined especially from 2020 onwards, with the arrival of the Covid-19 pandemic still ongoing. Companies such as AstraZeneca, Pfizer , Moderna and so on benefited from attractive increases in equities.

Now that the market shows a contraction, compared to the brighter periods at the end of 2021, experts are more cautious. However, the healthcare ETFs proposed previously have shown record results and are rightfully included in our ranking.

We also emphasize the integration of a new category linked to health, namely that of telemedicine, or modern medicine. The ETF par excellence that invests in it is the ARK Genomic Revolution , which focuses precisely on the genomic revolution.

Best Cannabis ETFs

Cannabis ETFs	1 year volatility	ISIN
Rize Medical Cannabis and Life Sciences	37.39%	IE00BJXRZ273
HANetf The Medical Cannabis and Wellness	32.77%	IE00BG5J1M21

In recent times, many states have legalized the use of cannabis (also commonly called hemp). By maintaining a low level of active ingredient, it can be purchased, marketed freely and also used for personal purposes.

Focusing on the best cannabis ETFs means focusing on an ever-expanding sector (more and more nations are able to obtain licenses on this product). A market segment that is also intertwined with healthcare, given the therapeutic use of hemp.

Cannabis exchange traded funds contain baskets of stocks from major producing companies. The same are mainly concentrated in the Canadian territory, among the first in the world to have believed in this sector.

We remember companies such as:

• Cronos Group;
• GrowGeneration;
• Organigram Holdings.

Best real estate ETFs

real estate ETF	36-month risk return	ISIN
iShares Developed Markets Property Yield	0.11	IE00B1FZS350
VanEck Global Real Estate	0.17	NL0009690239
CSIF (IE) FTSE EPRA Nareit Developed Green Blue	–	IE00BMDX0K95
HSBC FTSE EPRA/NAREIT Developed	0.12	IE00B5L01S80
SPDR Dow Jones Global Real Estate	0.11	IE00B8GF1M35

Not to be confused with real estate funds, real estate ETFs are ETFs focused purely on the Real Estate market. For example, you can find ETFs that focus on companies that manage large hotel complexes, residential structures and more.

Investing in real estate is always one of the most sought after activities by investors, even if with prohibitive costs and difficult periods, many of them decide to rely on ETFs, or at most real estate crowdfunding (certainly easier to manage).

With real estate ETFs you don't have to worry about managing files, selecting the project, or evaluating the residential complex, or the property in question. Everything is managed automatically and it is always possible to check the performance status and its progress.

Best artificial intelligence (AI) ETFs

ETF on artificial intelligence	36-month risk return	ISIN
Amundi STOXX Global Artificial Intelligence	0.56	LU1861132840
WisdomTree Artificial Intelligence	0.68	IE00BDVPNG13
L&G Artificial Intelligence	0.32	IE00BK5BCD43
Xtrackers Artificial Intelligence and Big Data	0.58	IE00BGV5VN51

Technological progress has led to the development of new technologies, including artificial intelligence. Also called AI, it continues to be integrated into many sectors, including home automation, automotive and much more.

A sector that according to many experts is destined to grow, especially considering the real uses and the advantages that AI is able to offer. The best ETFs on artificial intelligence focus purely on stocks of companies that work on the study and creation of AI.

Many of the same have more than doubled in the past two years, making it into many world rankings. They can therefore be considered among the best ETFs to keep in mind in 2022.

Best Tech ETFs

ETFs on technology and information technology	36-month risk return	ISIN
Xtrackers MSCI World Information Technology	0.68	IE00BM67HT60
iShares MSCI World Information Technology Sector	–	IE00BJ5JNY98
Lyxor MSCI World Information Technology	0.68	LU0533033667
Invesco US Technology Sector	0.71	IE00B3VSSL01
SPDR S&P US Technology Select Sector	0.74	IE00BWBXM948

Much like exchange traded funds that focus on artificial intelligence, we find the best ETFs on the tech sector . Tech ETFs invest in the world of new technologies, or rather in the main companies that operate there.

For example, we can underline how many funds focus on large capitalization companies, such as Nvidia, Alphabet, AMD, Intel, Microsoft and many others. All names that clearly demonstrate the potential of these investment products.

Best Bitcoin ETFs

ETF your Bitcoin	Ticker
ETF Bitcoin ProShares Bitcoin Strategy	SMALL
Valkyrie Bitcoin Strategy ETF	BTF
ETF Bitcoin VanEck	VBTC
Purpose Bitcoin ETF	BTCC.B
Global X Blockchain	BKCH

The cryptocurrency sector is also slowly trying to find its own space in the exchange traded fund market. It is one of the largest markets in the world, worth billions of dollars and is certainly among the most modern of all.

Since cryptocurrencies are considered financial assets apart (they are not listed on regulated markets and exchanges), the creation of ETFs on cryptocurrencies has always been a big problem, especially for obtaining authorizations from the SEC and similar authorities.

However, starting from 2021, something began to move and the first ETFs (at least on the most capitalized cryptocurrencies, such as Bitcoin) were for the first time listed on real exchanges (i.e. regulated and with other financial instruments).

Best Semiconductor ETFs

Semiconductor ETFs	36-month risk return	ISIN
VanEck Semiconductor	–	IE00BMC38736
Lyxor MSCI Semiconductors	0.63	LU1900066033
HSBC Nasdaq Global Semiconductor	–	IE000YDZG487
iShares MSCI Global Semiconductors	–	IE000I8KRLL9

We continue our in-depth analysis on the best ETFs to buy considering a segment that has been very fashionable in recent months, namely that of semiconductors. Everyone is aware of the great crisis of chips and processors, which has created many problems in the automotive and industrial sectors.

An aspect that can make us understand how the demand for these components is increasingly indispensable. More and more sectors continue to integrate chips and electronics in their productions and the demand for semiconductors is therefore destined to grow.

Focusing on the best semiconductor ETFs means focusing on a relatively new sector, but above all in the making. These funds integrate companies that design, manufacture and market semiconductors around the world.

Best bond ETFs

Bond ETFs	36-month risk return	ISIN
Lyxor EUR 2-10Y Inflation Expectations	1.25	LU1390062245
SPDR Bloomberg EM Inflation Linked Local Bond	0.18	IE00B7MXFZ59
Xtrackers US Treasuries Ultrashort Bond	–	IE00BM97MR69
iShares USD Ultrashort Bond	0.52	IE00BCRY6227
iShares USD Corporate Bond	0.08	IE0032895942

The comprehensive list just proposed highlights the best government ETFs , i.e. managed funds that focus on government bonds. While they have much lower returns than all the ETFs listed above, they are a great diversification asset.

The low return is in this case commensurate with the limited risk (since it is still state products). For example, you can identify ETFs on the best BTPs (i.e. government bonds), as well as bond funds linked to other European countries and countries around the world.

If you are looking for a bond ETF that allows you to achieve a potentially higher return (with higher risk), you can consider emerging market government ETFs instead.

The potentially higher return is that emerging nations have a greater propensity to pay more interest than Western nations. You can then evaluate them as a hedge in your diversified portfolio.

Best ETFs Borsa Italiana

ETF Borsa Italiana	ISIN
iShares FTSE Italia Mid-Small Cap UCITS	IE00BF5LJ058
Lyxor FTSE Italy All Cap PIR 2020 (DR) UCITS	LU1605710802
iShares Italy Government Bond UCITS EUR (Dist)	IE00B7LW6Y90
Lyxor FTSE Italy PMI PIR 2020 (DR) UCITS	FR0011758085
Lyxor EuroMTS 1-3Y Italy BTP Government Bond (DR) UCITS	LU1598691050
Xtrackers MTS Ex-Bank of Italy BOT Swap UCITS	LU0613540268
Wisdomtree FTSE MIB Banks	IE00BYMB4Q22
Lyxor EuroMTS 10Y Italy BTP Government Bond (DR) UCITS	LU1598691217
Amundi Mib UCITS	LU1681037518
iShares FTSE Mib UCITS	IE00B53L4X51

Contrary to popular belief, the Italian Stock Exchange is also rich in ETFs , which in turn are differentiated on the basis of sector and type. Italy is one of the most developed nations in Europe and has hundreds of large capitalization listed companies.

The same exchange traded funds obviously integrate baskets of Italian equities , which can refer to the industrial, energy, automotive sector (the most important in our territory), as well as reflect the performance of the Italian stock market .

The Borsa Italiana ETFs that we have shown in the table all differ in terms of historical high returns and trading volume. Many of them are among the largest ETFs listed on the Italian trading center.

Best Vanguard ETFs

ETF Vanguard	36-month risk return	ISIN
Vanguard S&P 500	0.58	IE00B3XXRP09
Vanguard FTSE 100	0.20	IE00B810Q511
Vanguard FTSE Emerging Markets	0.25	IE00B3VVMM84
Vanguard FTSE All-World High Dividend Yield	0.44	IE00B8GKDB10

The ETFs on display are all managed by one of the leading companies in the exchange traded fund industry, The Vanguard Group . It was founded by the well-known entrepreneur and stock market expert John Bogle and is a concrete point of reference for investors.

Vanguard funds have specific characteristics that distinguish them from others in the same category. Firstly, they are constantly balanced and secondly they show much lower costs than the competition.

How and where to buy the best ETFs

If you want to buy ETFs and invest in this type of financial product, it is good that you know the main solutions.

More specifically, you can opt for:

1. direct investment in the ETF through the company that manages the fund (in this case always consider any management costs and the fees that are required);
2. trade on ETFs through the best CFD brokers , i.e. based on derivative instruments that replicate the performance of the financial product of interest, allowing you to open both upward (buying) and downward (selling) positions.

Obviously, always rely on professional platforms, but above all regulated in our territory (ie with CySEC licenses, or another similar body). It also opts for brokers with very low spreads on exchanges and with simplified management.

Below is a complete table where you can independently select one of the best trading brokers to invest in ETFs. Complete the registration, verify the account, make a small initial deposit (with eToro it is only 50 euros ) and start your strategy.

Invest in the best ETFs with eToro

One of the most professional brokers, regulated in Europe and with millions of registered users, is eToro (click here to register) . It has a basic platform, very user friendly and which allows you to access the ETF section in a few seconds.

Within it you can identify dozens of thematic ETFs , both sectorial (on energy, the automotive sector, new technologies and so on), and related to commodities (such as palladium ETFs, oil ETFs and others) .

You can always start with an unlimited demo account over time and with no obligation on the initial deposit. This allows you to have $ 100,000 virtual dollars at your disposal , which you can use at your discretion to try out the broker's features.

If you want to get into the practical immediately, you can instead make a first initial deposit, from only 50 euros and start the business. Here are 5 simple steps to invest in the best ETFs on eToro:

1. complete registration in seconds;
2. proceed with the identity verification;
3. upload a deposit (even with PayPal);
4. search for the ETF of your interest;
5. implement your ETF trading strategy.

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Best cheapest ETFs

We offer a comprehensive list, carefully selected by experts, with the best cheap ETFs . These are specific exchange traded funds that show very low totalitarian costs and are therefore often observed by beginners.

Even in this case, however, the assessment must be carried out with care and in addition to the historical performance you must necessarily focus on developed sectors that could grow in the future.

What are the best cheapest ETFs? Here is the top 5 list:

1. iShares Core S&P 500 (cost equal to 0.03%);
2. Vanguard Total Bond Market (costs equal to 0.04%);
3. Vanguard Total Stock Market (costs equal to 0.03%);
4. Vanguard High Dividend Yield Index (costi pari a 0,06%);
5. Vanguard Value (costs equal to 0.04%).

How risky is investing in ETFs?

Like all other investment products, ETFs also exhibit various risks, which must always be taken into account in speculative activities.

Here are some of the most significant risks:

• the market risk , which is the same that we have indicated several times, also speaking of other financial instruments (ETFs are also subject to market supply and demand and their trend can never be predicted with mathematical certainty, due to volatility) ;
• the risk of choice , which in this case refers to the trader's analytical skills in knowing how to select only the best ETFs, avoiding those that could suffer losses or negative trends;
• concentration risk , which can be emphasized especially on sectoral ETFs and which replicate indices integrating few stocks (a collapse of the automotive market on an ETF linked to this sector, could cause the entire fund to collapse, despite its diversification).

How much does an ETF make?

At this point you may be wondering how much an ETF makes . Certainly a legitimate question, but which must necessarily be associated with all the aspects of risk described above (certain and easy gains in the investment sector do not exist).

Assuming estimates and possible returns, in such a particular context, is also a very complex activity, due to the many influencing factors. What can be highlighted, however, are the gains made by investors on specific historical funds.

Taking as a reference the ETF that replicates the S&P 500 (therefore with the main American companies), historical investors have managed to obtain even 10% of annual return. The most recent speech is that of many semiconductor ETFs, with + 150% in a few months .

Alternatives to ETFs

The online investment sector naturally consists of many other alternatives . For example, if you are a more experienced user, you could invest directly in individual shares, creating your own “fund”, or better portfolio, and managing it independently.

In addition to shares, you can also refer to all other existing financial instruments, such as stock market indices, commodities, currency exchange and much more. If you still consider yourself a novice user, you may instead opt for systems that are easier to manage.

A typical example, which can also always be used to invest in ETFs, is the innovative Copy Trading function of the eToro broker. With the same you can choose real expert traders who prefer to operate on the ETF market and get their strategies.

Let's immediately see some steps on its operation:

1. register and log in on eToro;
2. go to the Popular Investor section;
3. choose one or more experienced traders;
4. decide the capital to use for the copy;
5. start the copy and get the same trades as the ETF expert.

67% of eToro CFD users lose money

The best ETFs: the market

One of the channels most used by traders to go in search of the best ETFs , is certainly that of online forums. These are public online places, which simply require an email and registration in order to access and which incorporate hundreds of information.

In this regard, however, it is very important to always pay the utmost attention for several reasons. Firstly, many discussions may be old and many ETF lists may therefore be out of date.

Secondly, it is always essential to clarify the source of information, that is to ask who has indicated those ETFs as "best". In other words, it evaluates whether or not the indication derives from a real professional in the sector, or from a trader with little knowledge.

In our opinion, we always advise you to rely solely and exclusively on professional information sites , updated day after day and which expose clear, real data, but above all verified by real experts in the field.

Is it worth investing in the best ETFs?

Can the best ETFs be the right financial instrument for you? The answer is it depends . ETFs are definitely trading assets with good diversification and potentially easier to manage than a manually composed portfolio.

You can also select funds linked to the most developed sectors, focusing only on those that have achieved the best performances in recent times, or that you assume will grow between now and the next few months.

Therefore, remember that:

1. ETFs can also prove to be an excellent tool for long-term strategies , ie purchase and conservation over an extended time horizon;
2. ETFs allow you to diversify your portfolio , choosing at your discretion the average risk level (lower on government ETFs and very high with those on cryptocurrencies);
3. you can always trade on the main ETFs using authorized brokers, which allow you to manage assets from the comfort of your home, even via smartphone.

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