Sector Tracking ETFs:These ETFs track the 11 economic sectors that represent key areas of the economy such as Energy, Health Care, Information Technology, Real Estate, Industrials, Utilities, Materials and more.
Index ETFs:They track or mirror market indices such as the S&P 500.
International ETFs:These ETFs provide exposure to international stocks. Some track stocks issued by companies located in emerging markets while others track all markets but exclude the United States.
Developed Market ETFs:They provide broad exposure to developed markets such as Germany and Australia.
Country Specific ETFs:These ETFs allow you to focus on the market of a single country.
Thematic ETFs:These ETFs are structured around a central theme or idea. For example, some Thematic ETFs choose to only invest in eco-friendly companies while others try to capitalize on financial trends.
Commodity and Currency ETFs:They track commodities such as precious metals or global currencies such as the Japanese Yen.
Complex ETFs:They go beyond simply mirroring an index or basket of securities. Their complexity makes them ideally suited for seasoned investors who understand the risks involved.
This wide range of ETF types can make choosing the best ETF seem challenging but these categories can actually help you zero in on the right ETFs for you. By comparing the cost, structure, and performance, you may be able to identify the ETFs that best match your investing goals.
