There are so many types of ETFs out there and choosing the one to go with can be quite overwhelming. From Commodity ETFs to Equity ETFs, the options are vast. We've tried to make it easier by listing the best-performing ETFs for 2024 in terms of performance. This guide will help you understand which ETFs have stood out this year and why they might be worth considering for your investment portfolio.
Best-performing ETFs for July 2024
1. Global Copper Miners ETF (COPX)
1-year return: 25.55%
Global Copper Miners (COPX) is an exchange-traded fund (ETF) that focuses on companies involved in copper mining. It aims to provide investors with exposure to the performance of copper mining companies around the world. This ETF includes firms that explore, extract, and refine copper. Trading COPX can be a way to benefit from the copper industry's growth and the increasing demand for this essential metal in various industries, such as electronics, construction, and renewable energy.
2. VanEck Gold Miners ETF (GDX.US)
1-year return: 20.11%
VanEck Gold Miners (GDX.US) is an exchange-traded fund (ETF) that focuses on companies involved in gold mining. It aims to track the performance of the largest and most liquid gold mining companies globally. Trading in GDX.US allows you to gain exposure to the gold mining industry without having to buy individual stocks. This gold ETF includes companies that explore, extract, and process gold. It’s a popular choice for those looking to trade in gold indirectly, benefiting from potential increases in gold prices and the overall performance of the gold mining sector.
3. Global Silver Miners (SIL)
1-year return: 28%
Global Silver Miners (SIL) is an exchange-traded fund (ETF) that focuses on companies involved in silver mining. This ETF tracks the performance of the largest and most liquid silver mining companies around the world. By trading SIL, you can gain exposure to the silver mining industry without needing to buy individual stocks. The ETF includes companies that explore, extract, and process silver, making it a convenient way to trade in the silver market and benefit from the change in silver price.
4. S&P Oil & Gas Exploration & Production (XOP.US)
1-year return: 10.55%
The S&P Oil & Gas Exploration & Production ETF (XOP.US) is an exchange-traded fund that focuses on companies involved in the exploration and production of oil and gas. This ETF tracks the performance of a wide range of companies within the oil and gas sector, including those that search for oil and gas reserves and those that extract these resources. By trading XOP, you can gain exposure to the oil and gas industry without needing to buy individual stocks. This makes it a convenient way to trade in the energy sector and benefit from changes in oil and gas prices.
5. SPDR SPX500 ETF (SPY.US)
1-year return: 26.43%
The SPDR SPX500 ETF (SPY.US) is an exchange-traded fund that aims to mirror the performance of the SPX500 Index. The SPX500 is a benchmark index that includes 500 of the largest publicly traded companies in the United States, representing various industries. By trading SPY, you are essentially buying a small portion h of these 500 companies. This SPX 500 ETF is popular because it provides broad exposure to the U.S. stock market, offering diversification and reducing the risk associated with trading individual stocks. It's an easy way to trade in the overall U.S. economy.
Source: investing.com
How to trade ETFs online - steps
- Open an account: Register and verify your account on the Skilling trading platform.
- Deposit funds: Add funds to your Skilling account using your preferred payment method.
- Research ETFs: Once logged in, on the search bar, research and search ETFs that suit your strategy.
- Analyze market data: Review charts, news, and analysis for informed decision-making.
- Place order: Choose the amount and type of order (buy/sell) for your selected ETF.
- Monitor positions: Track your trades and adjust as needed.
- Close position: Sell your ETF when you're ready to realize profits or cut losses.
- Withdraw funds: Transfer your earnings back to your preferred payment method.
Advantages and disadvantages of trading ETFs
ETFs, or Exchange-Traded Funds, offer several benefits for investors but also come with some drawbacks. One major advantage of ETFs is diversification. By buying one ETF, you can invest in a wide range of assets, such as stocks, bonds, or commodities, which helps spread risk. They also have lower fees when compared to mutual funds because they are passively managed. Another benefit is their flexibility; you can buy and sell ETFs throughout the trading day like regular stocks, and they often have transparent holdings, so you know what you’re investing in.
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However, there are some downsides to consider. ETFs can have trading costs like brokerage fees and bid-ask spreads, which might add up if you trade frequently. While most ETFs have low expense ratios, some specialized ETFs can have higher costs. Additionally, market fluctuations can impact ETF prices, and while they offer diversification, they are still subject to market risks. Lastly, some ETFs may be complex, and understanding their underlying assets and strategies is crucial for making informed decisions. Overall, while ETFs are a popular investment choice due to their flexibility and cost-efficiency, it’s important to weigh these advantages against their potential risks and costs.
Summary
As you’ve seen, ETFs are subject to market risks, trading costs, and some can be complex to understand. Overall, ETFs can be a cost-effective way to diversify your portfolio, but it’s important to carefully consider their risks and choose the right ones for your investment goals.
Source: Investopedia.com
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