ETF, the full name in English is Exchange Traded Fund, and in Chinese it is called "index stock fund". ETF is essentially a security that tracks an index, industry (Sector), commodity (Commodity), or other assets, and can be traded on a stock exchange like ordinary stocks. As an emerging investment method, ETF combines the flexible trading of stocks with the diversified portfolio of mutual funds, and has become an increasingly popular investment choice. ETF providers, such as BlackRock, Vanguard, and State Street, package a basket of stocks, funds, or other financial products into a fund and design it in the form of a trust to track the performance of these assets and set corresponding indexes. This fund is then divided into ETF shares and bought and sold on the stock market just like stocks. In this process, the supply of ETF shares is regulated through mechanisms of “creation” and “redemption.” This mechanism needs to be implemented by large professional investment institutions called "authorized participants", such as JPMorgan Chase and Merrill Lynch. As in all transactions, the ETF provider holds the underlying asset, while the investor (ETF Buyer) owns a portion of the ETF shares but does not directly own the underlying assets of the fund. Investors can buy and trade through online brokers (such as Moomoo, Interactive Brokers, Firstrade, Robinhood) or directly from EFT providers. For example, Vanguard sells its ETFs directly to the public through its website. How did ETFs develop? ETFs were created to combine the convenience of stock trading with the advantages of the diversified selection of mutual funds. The earliest ETF was launched in the United States in 1993 and was called "Standard & Poor's Depositary Receipts" (SPDRs). Its purpose was to provide an investment tool that could be traded in real time on the exchange while having the diversified investment characteristics of a fund. ETF structures can vary from tracking the price of a single commodity to a diversified portfolio containing a number of different securities or even specific investment strategies. They are not limited to the U.S. market but can invest globally. The price of an ETF fluctuates in real time as the market trades, and investors can buy or sell at any time during trading hours. This is a significant difference from traditional mutual funds, which can only trade after the market closes each day. In the United States, most ETFs are established as open-end funds and regulated under the Investment Company Act of 1940. This ensures the transparency and security of the ETF, providing investors with a more secure investment option. What are the characteristics of ETFs? ETFs have great advantages, such as low cost and diversification; they also have certain disadvantages, such as lack of liquidity, etc. Advantages of ETFs low cost Compared with mutual funds, ETFs charge very low annual fees. For example, the annual fee of S&P 500 Index Fund (SPY) is only 0.09%, while VOO is even lower, only 0.03%. Of course, there are also many ETFs with higher fees. For example, GDX reaches 0.52%. There are also some short-selling ETFs, such as SQQQ and SPDN, which also charge higher fees. In comparison, mutual funds charge a lot of fees, such as management fees (0.25%~1.5%), commissions for buying and selling fund shares, and other fees. Note that ETFs do not charge separate management fees. ETF fees are already embedded in the ETF price. Mutual fund fees are charged separately. When investing in ETFs, investors only need to perform one buy transaction and one sell transaction, eliminating commissions and transaction fees for multiple transactions. Some brokers will even provide commission-free transactions for certain low-cost ETFs, further reducing investment costs. For example, Interactive Brokers, Futu Moomoo, and Firstrade ETFs all have zero commissions and no handling fees. Investment diversification
Through ETFs, you can not only make one-time investments in most stocks within the same industry or field, but you can even invest across industries and across countries. For example, by investing in SPY, you can invest in 500 U.S. listed companies at one time, and through IWM, you can invest in approximately 1,950 U.S. small companies at one time. A diversified investment model greatly reduces the risk that may be incurred when investing in a company alone. Of course, based on the personal interests of investors, there are also ETFs that focus on a specific industry. For example, XLF focuses on listed companies in the U.S. financial industry, and XLE focuses on listed companies in the U.S. energy industry. Transparency ETFs are known for their high level of transparency. Investors can easily access ETF price dynamics, which are updated in real time on exchanges. In addition, ETF holding information is disclosed to the public on a daily basis, allowing investors to understand the specific composition and changes of the fund in detail. In contrast, mutual funds are relatively weak on transparency. Most mutual funds typically disclose their holdings to investors only on a monthly or quarterly basis. This long disclosure cycle can lead to information lags, making it difficult for investors to keep up to date with a fund's latest developments and risk exposures. low taxes ETFs are known for their tax efficiency, providing different tax advantages than mutual funds. In mutual funds, investors may be required to pay taxes on capital gains during the investment period, which typically arise from the fund manager's trading activities. In an ETF, however, investors typically only pay capital gains taxes when they ultimately sell their ETF shares. This asset reallocation mechanism allows ETFs to more flexibly manage internal transactions, thereby reducing the frequency with which capital gains taxes are triggered. Disadvantages illiquidity As with any security, investors are affected by the current market price when selling. In times of severe market volatility, large sales of single stocks have a greater impact on ETFs sold in "baskets." Therefore, it is more advantageous to invest in popular ETFs that are more liquid as buying and selling is easier. ETF closure risk When an ETF does not have enough assets to cover operating expenses or management costs, the fund company may decide to close the ETF. When it closes, the fund company sells all assets held by the ETF and returns the proceeds to investors. What are the different categories of ETFs? ETFs can be classified according to management methods and types of investment targets. 1. Classification based on management methods Passively Managed ETFs Passively managed ETFs are a more traditional management method for ETFs. They usually track a specific benchmark asset, and the fund manager does not adjust the fund's investment proportions every day. The transaction costs required are lower than those of actively managed ETFs, and the returns obtained are stable. But it may not necessarily meet the income goals of active investors. Actively managed ETFs Actively managed ETFs refer to an investment management method in which investors actively manage their stock portfolios, becoming more involved in buying and selling stocks and changing holdings within the ETF. It emerged after passively managed ETFs, giving investors more options for stock portfolios and allowing active investors to make more free investment choices based on their own judgment. Compared with passively managed ETFs, active management may achieve higher returns, but at the same time, it will also incur higher transaction fees, management fees, etc. due to high turnover rates. 2. Classification based on investment objectives Bond ETFs: include U.S. Treasury bonds, state and local bonds, municipal bonds, corporate bonds, etc.; Commodity ETFs: physical commodity investment targets including crude oil, natural gas or gold; Currency ETFs: including currencies of various countries, such as Canadian dollars, euros, Japanese yen, etc.; Stock ETFs: including stocks, funds, etc.; Industry ETFs: Track specific industries. According to the US stock market, there are 11 sectors including health care, finance, industry, information technology, and real estate. Each sector is composed of companies operating in that sector. Industry ETFs provide stock portfolio investments in different companies within a specific industry, or cross-industry portfolio investments. International ETFs: ETFs focusing on all economies outside the United States, including developed markets, emerging markets, etc.; There are also novel ETFs, such as a cybersecurity ETF and a smartphone-focused ETF.
What is the difference between ETFs, stocks and mutual funds? The difference between ETFs and stocks The biggest difference between ETFs and stock trading is their holding form of a "basket" of stocks. ETFs sold in a "basket" format can significantly reduce expenses in terms of transaction fees and brokerage commissions compared to buying different individual stocks separately. Since there are a variety of assets in ETFs, which are not limited to the same industry or the same country, it can meet the needs of investors for diversified investments and create a more diversified portfolio investment. The difference between ETFs and mutual funds The biggest difference between ETFs and mutual funds is that ETFs can be traded on stock exchanges and have the same flexible trading process as stocks. In comparison, they are more cost-effective and liquid. Management fees are also one of the advantages of ETFs. Data in 2019 show that the average annual management fee for stock mutual funds is 0.52%, while the average fee rate for ETFs is 0.18%. When first trading, ETFs have significantly lower minimum investment standards than mutual funds. What are some common ETFs? Index ETF ETF [Fees] ETF Introduction S&P 500 SPDR S&P 500 ETF Trust [0.09%] SPY tracks a market capitalization-weighted index of U.S. large- and mid-cap stocks selected by the S&P committee. UPROProShares UltraPro S&P500 (+3X,1 Day)[0.91%] UPRO provides daily returns with 3x leverage and tracks a market cap-weighted index of U.S. large- and mid-cap companies selected by the S&P committee. IVViShares Core S&P 500 ETF [0.03%] IVV tracks a market-cap-weighted index of U.S. large- and mid-cap stocks selected by the S&P committee, similar to SPY. Nasdaq Index QQQInvesco QQQ Trust[0.2%]QQQ tracks a modified market capitalization weighted index composed of 100 stocks listed on Nasdaq. TQQQProShares UltraPro QQQ [0.86%] TQQQ provides 3x leveraged investment returns and tracks a modified market capitalization weighted index of the largest 100 non-financial companies listed on Nasdaq. DIASPDR Dow Jones Industrial Average ETF Trust 0.16% DIA tracks a price-weighted index of 30 U.S. large-cap stocks selected by the editors of The Wall Street Journal. UDOWProShares UltraPro Dow300.95%UDOW provides 3x leveraged investment returns and tracks the price-weighted Dow Jones Industrial Average, which includes the 30 largest U.S. companies. The OEFiShares S&P 100 ETF 0.2%OEF, an index of large, medium and small-capitalization companies, tracks a market-capitalization-weighted index of 100 large-capitalization companies in the United States selected by the S&P committee. MDYSPDR S&P Midcap 400 ETF Trust0.23% MDY tracks a market-cap-weighted index of U.S. mid-cap companies. SLYSPDR S&P 600 Small Cap ETF 0.15%SLY tracks a market capitalization-weighted index of U.S. small-cap stocks selected by the S&P committee. Russell Indexes IWBiShares Russell 1000 ETF 0.15% IIWB tracks a market capitalization weighted index composed of 1,000 of the largest U.S. companies. IWMiShares Russell 2000 ETF 0.19% IWM tracks a market cap-weighted index of U.S. small-cap stocks ranked between 1,001 and 3,000.
IWViShares Russell 3000 ETF0.2%IWV tracks the performance of the Russell 3000 Index. The index represents the investable U.S. stock market and includes the 3,000 largest U.S. companies ranked by market capitalization. Sector ETFs XLEEnergy Select Sector SPDR Fund [0.1%]XLE tracks a market cap-weighted index of U.S. energy companies in the S&P 500. XLK Technology Select Sector SPDR Fund [0.1%] XLK tracks an index composed of technology stocks in the S&P 500 Index. XLPConsumer Staples Select Sector SPDR Fund[0.1%]XLP tracks a market capitalization-weighted index composed of consumer staples stocks in the S&P 500 Index. XLV Health Care Select Sector SPDR Fund [0.1%] XLV tracks the healthcare stocks in the S&P 500 and is weighted by market capitalization. XLBMaterials Select Sector SPDR Fund[0.1%]XLB tracks a market cap-weighted index of U.S. basic materials companies. The fund only includes materials stocks from the S&P 500 Index. XLYConsumer Discretionary Select Sector SPDR Fund[0.1%]XLY tracks a market cap-weighted index composed of consumer stocks in the S&P 500 Index. XRTSPDR S&P Retail ETF [0.35%] XRT tracks a broad equal-weighted index comprised of stocks in the U.S. retail industry. XLC Communication Services Select Sector SPDR Fund [0.1%] XLC tracks a market cap-weighted index of U.S. telecommunications and media & entertainment companies in the S&P 500. XLIIndustrial Select Sector SPDR Fund[0.1%]XLI tracks a market capitalization-weighted index composed of industrial sector stocks in the S&P 500 Index. XLRE Real Estate Select Sector SPDR Fund [0.1%] XLRE tracks a market capitalization-weighted index composed of real estate investment trusts (REITs) and real estate stocks in the S&P 500, excluding mortgage REITs. XLF Financial Select Sector SPDR Fund [0.1%] XLF tracks a market cap-weighted index composed of financial stocks in the S&P 500 Index. U.S. Treasury Bond ETFs TLTiShares 20+ Year Treasury Bond ETF [0.15%] TLT tracks a market capitalization-weighted index of debt issued by the U.S. Treasury with remaining maturities of 20 years or more. IEFiShares 7-10 Year Treasury Bond ETF [0.15%] IEF tracks a market capitalization-weighted index of debt issued by the U.S. Treasury with remaining maturities of 7 to 10 years, excluding Treasury STRIPS. SHYiShares 1-3 Year Treasury Bond ETF [0.15%] SHY tracks a market capitalization-weighted index of debt issued by the U.S. Treasury with remaining maturities of 1 to 3 years, excluding Treasury STRIPS.
TIPiShares TIPS Bond ETF [0.19%] TIP tracks a market-capitalization-weighted index of inflation-protected securities (TIPS) issued by the U.S. Treasury that have remaining maturity of at least one year. MUBiShares National Muni Bond ETF [0.07%]MUB tracks the investment results of an index comprised of investment-grade U.S. municipal bonds. Municipal bonds, often called "munis," are debt securities issued by states, cities, counties, and other government entities to finance public projects such as schools, highways, and hospitals. EDV Vanguard Extended Duration Treasury ETF [0.06%] This fund is passively managed and seeks to hold a group of Treasury STRIPS with maturities of 20 to 30 years. These securities represent individual interest or principal payments on a U.S. Treasury security that has been broken into its individually tradable components. TMFDirexion Daily 20+ Year Treasury Bull 3X Shares[1.06%]TMF provides 3x daily investment returns and tracks a market cap-weighted index of U.S. Treasury securities with more than 20 years remaining to maturity. Commodity ETFs GLD SPDR Gold Trust [0.4%] GLD tracks the spot price of gold, net of fees and liabilities, and does this using gold bars stored in London vaults. GDXVanEck Gold Miners ETF [0.51%] GDX tracks the performance of the NYSE Arca Gold Miners Index, which includes the world's major gold mining companies. Silver SLViShares Silver Trust [0.5%] SLV tracks the spot price of silver by holding physical silver bars. AGQProShares Ultra Silver [1.5%] ACG aims to provide an investment return that is twice leveraged (2x) on the daily movement of the silver spot price through the use of financial derivatives such as futures contracts and swaps. Platinum PPLTabrdn Physical Platinum Shares ETF [0.6%] PPLT tracks the spot price of platinum by holding physical platinum. PLTMGraniteShares Platinum Trust [0.5%] PLTM tracks the spot price of platinum by holding physical platinum, similar to PPLT. Palladium PALLAberdeen Standard Physical Palladium Shares ETF [0.6%] PALL tracks the spot price of palladium by holding physical palladium. Copper CPER United States Copper Index Fund [0.85%] CPER tracks a rules-based index of copper futures contracts that are selected based on the shape of the copper futures curve. Oil BNO United States Brent Oil Fund LP [1.02%] BNO tracks daily changes in Brent crude oil prices by holding crude oil futures contracts. USOUnited States Oil Fund LP [0.81%] USO tracks daily changes in the price of West Texas Intermediate crude oil (WTI) by holding crude oil futures contracts. USLUnited States 12 Month Oil Fund LP [0.90%] USL tracks daily changes in West Texas Intermediate crude oil (WTI) by holding crude oil futures contracts, but uses a longer-term rolling 12-month strategy.
UCOProShares Ultra Bloomberg Crude Oil [1.62%] UCO aims to provide investment returns that are two times (2x) the daily performance of Brent crude oil futures prices. UCO uses leverage strategies to amplify daily fluctuations in crude oil prices by holding and managing crude oil futures contracts. DBOInvesco DB Oil Fund[0.76%]DBO tracks daily changes in the price of light crude oil by holding crude oil futures contracts. Gasoline UGA United States Gasoline Fund LP [0.93%] UGA holds the New York Mercantile Exchange (NYMEX) front-month Restructured Gasoline Blend for Oxygen Blending (RBOB) gasoline futures contract Natural GasUNGUnited States Natural Gas Fund LP[1.11%]UNG tracks natural gas futures prices by holding front-month natural gas futures contracts and swaps. UNLUnited States 12 Month Natural Gas Fund LP[0.9%]UNL tracks daily changes in natural gas prices by holding natural gas futures contracts spanning 12 months Corn CORN Teucrium Corn Fund [1.14%] CORN tracks an index composed of corn futures contracts and reflects the market performance of corn by holding corn futures contracts with three different expiration dates on the Chicago Board of Trade (CBOT). Commodities GSGiShares S&P GSCI Commodity Indexed Trust [0.75%]GSG uses index futures contracts to track the S&P Goldman Sachs Commodity Index (S&P GSCI). This index includes a number of different commodities, distributed according to production weights. DBCInvesco DB Commodity Index Tracking Fund [0.87%] DBC tracks the DBIQ Optimum Yield Diversified Commodity Index Excess Return, which reflects the performance of a basket of diversified commodity futures contracts. USCI United States Commodity Index Fund [1.01%] USCI tracks the SummerHaven Dynamic Commodity Index Total Return and focuses on a broad range of commodities by holding various commodity futures contracts. CMDYiShares Bloomberg Roll Select Commodity Strategy ETF [0.28%] CMDY tracks the Bloomberg Roll Select Commodity Index, which holds futures contracts on a broad market commodity index and optimizes roll costs. COMDirexion Auspice Broad Commodity Strategy ETF [0.81%]COM tracks the Bloomberg Commodity Index, which includes futures contracts on 23 physical commodities covering energy, grains, industrial metals, precious metals and livestock products. CCRViShares Commodity Curve Carry Strategy ETF [0.4%] CCRV tracks the ICE BofA Commodity Enhanced Carry Index, which consists of various commodity futures contracts selected based on positive roll returns.
BCDabrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETFBCD BCD tracks the Bloomberg Commodity Index 3 Month Forward Index, which covers a variety of commodity markets, including energy, metals and agricultural products. Agriculture DBAInvesco DB Agriculture Fund [0.91%] The index tracked by DBA covers 10 agricultural product futures contracts, including grains, oilseeds, sugar and coffee. Energy DBEInvesco DB Energy Fund [0.77%] The index tracked by DBE covers five energy-related futures contracts, generally including crude oil, natural gas, heating oil, gasoline and Brent crude oil. RENWHarbor Energy Transition Strategy ETF [0.8%] REWN tracks the Quantix Energy Transition Index, which includes a variety of commodities related to the low-carbon and renewable energy transition. The index covers at least 10 different commodities, such as metals (copper, lithium, etc.), energy (natural gas, etc.) and agricultural products. Metals XMESPDR S&P Metals & Mining ETF [0.35%]XME tracks the performance of the S&P Metals & Mining Select Industry Index. This ETF includes a broad range of companies involved in the mining and production of metals and minerals. DBBInvesco DB Base Metals Fund [0.77%] DBB tracks the DBIQ Optimum Yield Industrial Metals Index, which consists of holdings in futures contracts on base metals, including metals such as aluminum, zinc and copper. DBPInvesco DB Precious Metals Fund [0.75%] DBP tracks the DBIQ Optimum Yield Precious Metals Index, which reflects market performance by holding precious metals futures contracts, including precious metals such as gold and silver. GLTRabrdn Physical Precious Metals Basket Shares ETF 0.6% GLTR tracks the performance of a basket of physical precious metals by holding them, including gold, silver, platinum and palladium. SugarCANETeucrium Sugar Fund[1.14%]CANE tracks daily changes in sugar futures contract prices by holding sugar futures contracts with different expiration times. SOYB Teucrium Soybean Fund [1.91%] SOYB tracks daily changes in soybean prices by holding soybean futures contracts. WEAT Teucrium Wheat Fund [1.14%] tracks daily changes in wheat prices by holding wheat futures contracts. Currency ETFs UUPInvesco DB U.S. Dollar Index Bullish Fund [0.78%] tracks changes in the value of the U.S. dollar relative to a basket of global currencies by holding USDX futures contracts. FXAInvesco CurrencyShares Australian Dollar Trust [0.4%] FXA tracks changes in the value of the Australian dollar (AUD) relative to the United States dollar (USD). FXB Invesco CurrencyShares British Pound Sterling Trust [0.4%] FXB reflects the change in value of British Pound Sterling (GBP) relative to the United States Dollar (USD).
FXCInvesco CurrencyShares Canadian Dollar Trust [0.4%] FXC tracks changes in the value of the Canadian dollar (CAD) relative to the U.S. dollar (USD). FXEInvesco CurrencyShares Euro Trust[0.4%]FXE tracks the change in value of the euro (EUR) relative to the U.S. dollar (USD). FXYInvesco CurrencyShares Japanese Yen Trust [0.4%] FXY tracks the change in value of the Japanese yen (JPY) relative to the U.S. dollar (USD). FXFInvesco CurrencyShares Swiss Franc Trust[0.4%]FXF tracks the change in value of the Swiss Franc (CHF) relative to the United States Dollar (USD). China-related ETFs ETF Name [Fees] ETF Introduction MCHIiShares MSCI China ETF [0.58%] MCHI tracks a market capitalization-weighted index of China's investable stocks. This fund includes Chinese stocks of various market capitalization sizes and aims to reflect the overall performance of the Chinese stock market. KWEBKraneShares CSI China Internet ETF [0.69%] KWEB tracks the performance of Chinese Internet companies and mainly invests in Internet companies and Internet-related companies operating in China. FXIiShares Trust – China Large-Cap ETF [0.74%] FXI tracks a market capitalization-weighted index consisting of the 50 largest Chinese stocks traded on the Hong Kong exchange. GXCSPDR S&P China ETF [0.59%] GXC tracks an index that reflects the overall performance of the Chinese stock market and invests in shares of Chinese companies listed in China and overseas. CQQQInvesco China Technology ETF[0.7%]CQQQ tracks a market capitalization-weighted Chinese technology stock index and mainly invests in Chinese technology company stocks listed in China and abroad. CNYAiShares MSCI China A ETF [0.6%] CNYA tracks a market capitalization-weighted China A-share stock index. KBAKraneShares Bosera MSCI China A 50 Connect Index ETF [0.56%] KBA tracks a market-cap-weighted subset of Chinese large- and mid-cap stocks listed in Shanghai and Shenzhen. Detailed introduction to several ETFs SPY Full name: SPDR S&P 500 ETF Trust Date of launch: January 22, 1993 Issuing agency: State Street Global Advisors Annual fee: 0.09% Main stocks: 500~502 stocks selected from NYSE and NASDAQ Fund size: $387B (March 2022) Daily trading volume: $47B (March 2022) MSCI Rating: A (March 2022) SPY is the world's first ETF, which was listed on January 22, 1993. It is an ETF used to track the S&P 500 Index. It is also one of the ETFs with the largest trading volume. The top ten stocks with the highest SPY holdings are as follows, with a total share of 27.88%: Apple Inc. (AAPL) – 7.52% Microsoft Corporation (MSFT) – 6.86% Amazon.com Inc. (AMZN) – 2.92% NVIDIA Corporation (NVDA) – 2.87%
Meta Platforms Inc. (META) – 1.88% Alphabet Inc. Class A (GOOGL) – 2.37% Alphabet Inc. Class C (GOOG) – 1.98% Broadcom Inc. (AVGO) – 1.60% Eli Lilly and Co. (LLY) – 1.58% Berkshire Hathaway Inc. Class B (BRK.B) – 1.58% If you are new to investing but are looking to profit from the stock market, buying SPY directly may be your best option. Buffett once said at the 2021 "Shareholders Meeting": But for a given individual, particularly my wife, I just think that having a tiny fraction, which is all it takes for her to do very well for the rest of her life, I just– I think that the best thing to do is buy 90% in an S&P 500 index fund. Now, the index fund people naturally have started over the time, they market more– more and more products that go to other indices and everything. QQQ Full name: Invesco QQQ Trust ETF Date of launch: March 10, 1999 Publisher: Invesco Annual fee: 0.2% Main stocks: 100 to 103 stocks in the non-financial sector of Nasdaq, mainly technology stocks Fund size: $174 B (March 2022) Daily trading volume: $27 B (March 2022) MSCI Rating: AA (March 2022) Invesco QQQ Trust only owns Nasdaq stocks in the non-financial sector. The top ten stocks with the highest proportions are as follows, accounting for 52.03%: Apple (12.63%) Microsoft (10.12%) Amazon (6.74%) Tesla (4.05%) Google-C (3.95%) Google-A (3.74%) NVIDIA (3.70%) Meta (3.30%) Broadcom (1.92%) Costco (1.88%) These high-tech companies make it a high-tech ETF and one of the largest ETFs currently, so it has very good liquidity. VOO Full name: Vanguard S&P 500 ETF Time to market: September 7, 2010 Issuing agency: Vanguard Annual fee: 0.03% Major stocks: NYSE and NASDAQ selected 500 to 508 stocks Fund size: $267 B (March 2022) Daily trading volume: $3.7 B (March 2022) The Vanguard S&P 500 ETF tracks the S&P 500 index and is very similar to SPY, but the 500 stocks included are slightly different, but VOO has a lower management fee (0.03%, vs SPY's 0.09%). However, from the perspective of volume and daily transaction volume, SPY is more popular than VOO.
VOO was launched in 2010 by Vanguard, one of the leaders in low-cost ETF investing, which itself has hundreds of billions in assets. IWM Full name: iShares Russell 2000 ETF Date of launch: May 22, 2000 Publisher: iShares (part of BlackRock) Annual fee: 0.19% Tracking: Russell 2000 Index, which includes about 2,000 small-cap companies. Fund size: $62.97 B (April 2024) Daily trading volume: $34M (April 2024) MSCI Rating: BBB (April 2024) IWM is an ETF issued by BlackRock's iShares. It mainly tracks the Russell 2000 Index, which includes about 2,000 small-cap companies. The top ten companies with the highest shareholding proportions of IWM are listed below: Ovintiv Inc. (OVV) – 0.44% ShockWave Medical Inc. (SWAV) – 0.34% Axon Enterprise Inc. (AXON) – 0.33% Celsius Holdings Inc. (CELH) – 0.31% Tandem Diabetes Care Inc. (TNDM) – 0.31% Insulet Corporation (PODD) – 0.31% SPS Commerce Inc. (SPSC) – 0.30% Blueprint Medicines Corporation (BPMC) – 0.30% The Ensign Group Inc. (ENSG) – 0.29% Lantheus Holdings Inc. (LNTH) – 0.29% SOXX Full name: iShares Semiconductor ETF Date of launch: July 10, 2001 Publisher: iShares Annual fee: 0.35% Tracking Index: ICE Semiconductor Index Fund size: US$12.77 billion (as of April 2024) SOXX mainly invests in companies in the semiconductor industry, and its holdings include major semiconductor companies such as Broadcom, NVIDIA, Advanced Micro Devices, and Applied Materials. The top ten companies with the highest SOXX shareholding ratio are listed below: Broadcom (AVGO) – 9.41% NVIDIA (NVDA) – 8.43% Advanced Micro Devices (AMD) – 7.56% Applied Materials (AMAT) – 6.56% QUALCOMM (QCOM) – 5.86% Lam Research (LRCX) – 4.28% Taiwan Semiconductor Manufacturing (TSM) – 4.14% KLA (KLAC) – 4.13% Micron Technology (MU) – 3.86% Marvell Technology (MRVL) – 3.85% GLD Time to market: November 18, 2004 Publisher: SPDR (State Street Global Advisors) Annual fee: 0.40% Track: LBMA Gold Price PM Funding size: approximately US$60 billion (as of 2024) Daily trading volume: approximately 5.17 million shares
GLD mainly tracks gold prices by holding physical gold and is an important tool for investors seeking hedging and diversified investments. Its transactions are as convenient and flexible as stocks, with a high degree of transparency and liquidity. GDX Full name: VanEck Gold Miners ETF Time to market: May 16, 2006 Publisher: VanEck Annual fee: 0.51% Tracking: NYSE Arca Gold Miners Index (GDMNTR) Fund size: $15.6 B (March 2022) Daily trading volume: $770 M (March 2022) MSCI Rating: AAA (March 2022) The VanEck Vector Gold Miners ETF is one of the largest gold miners ETFs, and GDX invests primarily in the world's leading gold mining companies, including companies from Canada, the United States, Australia and South Africa. The top ten stocks with the highest GDX holdings are as follows, with a total share of 69.01%: Newmont Corporation (17.45%) Barrick Gold Corporation (12.43%) Franco-Nevada Corporation (8.79%) Agnico Eagle Mines Limited (7.43%) Wheaton Precious Metals Corp (6.06%) Newcrest Mining Limited (4.63%) Gold Fields Limited Sponsored ADR (4.00%) AngloGold Ashanti Limited Sponsored ADR (3.00%) Northern Star Resources Ltd (2.63%) Zijin Mining Group Co., Ltd. Class H2 (0.58%) VIXY Full name: ProShares VIX Short-Term Futures ETF Time to market: January 3, 2011 Publisher: ProShares Annual fee: 0.85% Tracking: S&P 500 VIX Short-Term Futures Index Fund size: $407 M (March 2022) Daily trading volume: $180M (March 2022) The ProShares VIX Short-Term Futures ETF is a relatively unique member of the ETF world because it allows investors to profit from the market's volatility. If volatility moves higher, the ETF's value will increase, typically in the opposite direction of the stock market. However, because it must perform derivatives contracts regularly, which consumes its own funds over time, it is only suitable as a short-term investment. IEO Full name: iShares U.S. Oil & Gas Exploration & Production ETF Time to market: May 1, 2006 Publisher: Blackrock Annual fee: 0.39% Major Stocks: 50 Dow Jones U.S. Oil and Gas Company Stocks Fund size: $720 M (March 2022) Daily trading volume: $17.5M (March 2022) Stocks tracked by IEO include ConocoPhillips (COP) and EOG Resources (EOG), which together account for more than 25% of the portfolio. The top ten stocks with the highest IEO holdings are as follows, with a total share of 68.65%: ConocoPhillips (18.76%) EOG Resources, Inc. (9.85%)
Pioneer Natural Resources Company (7.77%) Marathon Petroleum Corporation (6.79%) Devon Energy Corporation (4.65%) Cheniere Energy, Inc. (4.64%) Valero Energy Corporation (4.27%) Hess Corporation (4.24%) Phillips 66 (4.12%) Diamondback Energy, Inc. (3.56%) RWJ Full name: Invesco S&P SmallCap 600 Revenue ETF Time to market: February 22, 2008 Major Stocks: Dow Jones SmallCap 600 Index Fund size: $760 M (March 2022) Daily trading volume: $7.5M (March 2022) The Invesco S&P SmallCap 600 Revenue ETF is made up of 600 small-cap stocks from the S&P Index (Dow Jones SmallCap 600), and then weights the stocks based on their revenue, with a weight cap of 5% for individual positions. The top ten stocks held by RWJ with the highest proportion are as follows, with a total share of 68.65%: PBF Energy, Inc. Class A (3.97%) World Fuel Services Corporation (2.93%) United Natural Foods, Inc. (2.36%) Andersons, Inc. (1.73%) Group 1 Automotive, Inc. (1.37%) Sonic Automotive, Inc. Class A (1.35%) SpartanNash Company (1.33%) Bed Bath & Beyond Inc. (1.27%) Asbury Automotive Group, Inc. (1.16%) Community Health Systems, Inc. (1.16%) VEU Full name: Vanguard FTSE All-World ex-US ETF Time to market: March 2, 2007 Publisher: Vanguard Annual fee: 0.07% Major stocks: large and mid-sized non-U.S. stocks (3315 stocks) Fund size: $32 B (March 2022) Daily trading volume: $375M (March 2022) Vanguard FTSE All-World ex-US ETF is an ETF suitable for global investment. The index includes about 2,200 company stocks from 46 countries around the world, covering developed markets and emerging markets. Its holdings include Alibaba (BABA) and Swiss pharmaceutical company Novartis (NVS). However, all companies included are "non-U.S." companies and do not include domestic companies in the United States. FAQ