10 Best Growth ETFs to Buy Right Now in 2024 For Long-Term Investing
10 Best Growth ETFs to Buy Right Now in 2024 For Long-Term Investing

10 Best Growth ETFs to Buy Right Now in 2024 For Long-Term Investing

ETFs are pooled investments that operate much like a mutual fund. Available to purchase on a stock exchange, ETFs track particular indexes, a sector, commodity or other assets.

In this guide, we will explore how ETFs operate and the range of assets accessible to investors. We will look at the risks associated with ETF investing and how they can be minimized.

Whether currency or coal, livestock or gold, the world of investing offers exciting trading opportunities.

One type of investment that you may not have heard of are exchange-traded funds (ETFs). If you are new to investing exchange-traded funds, it can be difficult to know where to begin.

In this guide, we will explain all you need to know about ETFs and advise on the best international ETFs to buy today.

Best ETFs to Invest In

One benefit to investing in exchange-traded funds is that they tend to be less volatile than individual stocks.

They are an appealing investment as they can be traded like a stock but provide ownership of a broad range of stocks.

With a broad range of ETFs such as stock, bond, specialty, sustainable, commodity, factor and currency, there are lots of opportunities to expand your portfolio.

To help you get started in ETF trading, we have compiled a list of the best value ETF to buy today.

1. Invesco Technology S&P US Select Sector UCITS ETF

This tech ETF represents the information technology and telecommunications services sectors of the S&P 500 Index. With a five-year performance of 162.79%, this Invesco ETF can offer a solid return on your investment and is one of the best tech ETFs to buy in 2024.

Investing in the Invesco Technology S&P US Select Sector UCITS ETF is a great way to build a portfolio of technology stocks. Opting for an ETF typically provides more diversity than a handful of individual technology stocks. This makes Invesco one of the best ETFs to buy for beginners.

That said, technology stocks can be volatile, and the stock valuation can be reduced due to inflation. You should spend extra time researching technology ETFs before investing.

Visit Invesco Technology S&P US Select Sector UCITS ETF

2. iShares Physical Gold ETC

Gold can be a stable and solid investment, and ETFs are easier to trade than the actual metal. One of the top-performing gold ETFs is iShares Physical Gold ETC, with a rate of 70.85% over five years.

If you don’t want to buy physical gold, ETFs are a great option. It is regarded as a safe investment that has performed well when other assets have struggled.

While it is generally a stable option, no investment is risk-free. Gold can go through periods of volatility that may affect the performance of gold ETFs.

Visit iShares Physical Gold ETC

3. ProShares UltraShort Bloomberg Natural Gas

Of the few natural gas ETFs, ProShares UltraShort Bloomberg Natural Gas is among the best-performing with a YTD performance of 68% up to October 2023.

Investing in natural gas provides exposure to a wide range of futures contracts and a diverse portfolio. Holding multiple options can help manage risk.

It is worth noting that an investment in natural gas is very concentrated. The price of natural gas can be influenced by a range of factors such as pipeline problems to adverse weather conditions.

Visit ProShares UltraShort Bloomberg Natural Gas

10 Best Growth ETFs To Buy Right Now For Long-Term Investing
10 Best Growth ETFs To Buy Right Now For Long-Term Investing

4. iShares Global Clean Energy UCITS ETF USD (Dist) (INRG)

One of the best clean energy ETFs, iShares Global Clean Energy UCITS ETF USD (Dist) (INRG) boasts a five-year performance of 80.24%. This socially responsible ETF invests your money in clean energy – a sector that becomes more prominent year on year.

Investing in ethical ETFs such as iShares Global Clean Energy can make a huge difference to the work against climate change. Pressure from shareholders encourages companies to take positive action.

Visit iShares Global Clean Energy UCITS ETF USD (Dist) (INRG)

5. L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF (LDUK)

With a one-year performance of 5.01% to November 2023, Legal & General Quality Equity Dividends ESG Exclusions is one of the best dividend ETFs to buy and hold.

Dividend ETFs are a good way to secure a long-term income from a diverse portfolio of shares. When chosen carefully, they can provide a good return on investment at a cheaper rate than an active fund.

Some ETFs pay dividends monthly, but most pay quarterly. You can understand whether an ETF pays dividends by looking at the historic yield. This will tell you the level of income paid in the past, which can be a reliable guide for the future.

Visit L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF (LDUK)

6. iShares Physical Silver ETC (SSLN)

One of the cheapest and most convenient ways to access the silver market is with silver ETFs. They are traded on an exchange just like shares, but do not require a large amount of capital to invest.

Several factors influence the price of silver, including the price of gold, supply and demand and interest rates.

It is worth considering that silver is not the safe haven it once was. While it can be a stable investment, it is seen as a more economically sensitive asset that can suffer increased prices when demand is high.

Visit iShares Physical Silver ETC (SSLN)

7. Vanguard S&P 500 ETF

As one of the largest and most popular ETFs, the Vanguard S&P 500 ETF offers an expense ratio of just 0.03% compared to the 0.78% average for similar funds. This low ratio means that the annual fee is just $3 for every $10,000 invested.

When you consider that some investments require an annual fee of $78, it is clear that Vanguard offers one of the best S&P ETFs to buy in 2024.

This ETF is large in size, making it a great option if you are looking to invest in the broader market. The Vanguard S&P 500 has a solid track record of delivering returns on investment, making it a reliable low-cost method of investment.

Visit Vanguard S&P 500 ETF

8. Xtrackers Physical Gold ETC (EUR) (OXA5)

The Xtrackers Physical Gold ETC is one of the best-performing gold ETFs on the market. It boasts a five-year performance of 70.11% and YTD rate of 8.53% up to November 2023.

Investing in physical gold ETFs is a convenient way to purchase shares of gold without having to factor in the purity and provenance of the metal. It also means you do not need to worry about storing physical gold.

It is important to consider that if the price of gold stagnates or decreases, fund management charges could begin to eat into your returns.

Visit Xtrackers Physical Gold ETC (EUR) (OXA5)

9. iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) (IITU)

Coming just after Invesco Technology US Sector, iShares IT offers a top-performing tech ETF with a rate of 162.67% across five years.

Opting for a tech ETF can be lower risk than choosing individual tech stocks. What’s more, it has the potential for higher returns when compared to other sectors.

You should not rush into investing in tech ETFs, as they require a good understanding of the market. Allow time for research so you can make an informed decision when choosing the best tech ETFs to buy.

Visit iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) (IITU)

10. Global X Silver Miners ETF

An alternative to investing in physical silver is to invest in a silver mining company.

Global X Silver Miners provides investors with exposure to silver mining stocks. Backing miners over physical silver can be a more lucrative choice as the companies can increase their profits faster than silver prices rise.

As of early 2023, the Global X Silver Miners ETF held shares of 37 silver mining stocks. Investing in this one ETF can provide exposure to a broad range of silver companies.

You should consider that silver mining companies do carry some risk. These include the potential for cost overruns, debt and exposure to non-silver mines.

Visit Global X Silver Miners ETF

What Are ETFs?

An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund.

Typically, ETFs track particular indexes, a sector, commodity or other assets. But unlike mutual funds, ETFs can be purchased on a stock exchange, like regular stock.

An EFT can be structured to track anything from the price of an individual commodity to a large/diverse collection of securities. This guide will inform you of the best ETFs to buy 2024.

Understanding Exchange-Traded Funds (ETFs)

To get started on your ETF investment journey, you must first understand what makes up good ETFs to buy 2024.

An ETF is an exchange-traded fund because it is traded on an exchange just like stocks. The price of the ETFs will change during the trading day, as shares are bought and sold on the market. ETFs tend to be more cost-effective, and more liquid, compared to mutual funds.

There are numerous underlying assets rather than only one in the case of a stock. Since there are multiple assets within an ETF, they can be a popular choice.

ETFs can contain many types of investments, including:

  • Stocks
  • Commodities
  • Bonds
  • A mixture of investment types

An ETF can own hundreds or thousands of stocks across various industries, or it could be isolated to one particular industry or sector. Some funds focus on only US offerings, while others have a global outlook.

For example, there are some banking-focused ETFs that contain stocks of various banks across the industry.

An ETF is known as a marketable security. This means they have a share price that can be bought/sold on exchanges throughout the day.

They can also be sold short. In the US, most ETFs are set up as open-ended funds and are subject to the Investment Company Act of 1940, except where there have been modifications.

Risks of Investing in ETFs

As with all investments, putting your money into ETFs can be risky. In this section, we will explain the types of risks to investing in ETFs.

Market Risk

Market risk refers to the risk of general price movements in a market, such as a stock market.

All types of investment, whether stocks, bonds or ETFs, are influenced by movement in the market.

The market can go up—which is good for your ETF. If it goes down, this can negatively affect your investment.

Judging the ETFs by the Wrong Metrics

With so many ETFs to choose from, you can run the risk of investing in a poorly performing company.

The difference between one tech company and another can be vast, and so it is imperative that you do your research to find the best value ETFs to buy to make your investment pay off.

Tax Risk

While ETFs are generally tax-efficient, the nature of tax risk depends on how actively the ETF is managed.

To minimize tax risk, look at what the ETF is investing in, where the investments are located and how the fund is structured. If you are unsure, check with your tax advisor.

Counterparty Risk

ETFs are mostly safe from counterparty risk. The area where this factor needs to be considered is with exchange-traded notes, or ETNs.

These are unsecured debt notes that are backed by an underlying bank. In the event that the bank goes out of business, your investment is not guaranteed.

Shutdown Risk

Not all ETFs are equal: some are very popular while others are not chosen so much. If an ETF is not getting investments, it can be shut down.

In this case, the fund will be liquidated, and the shareholders will receive their investment in cash. While everything may work out after the shutdown process, it can be burdensome and stressful.

Overpromising ETFs

If you spot a new ETF offering amazing features and an unbelievable return on your investment, don’t jump straight in. Make sure you research the company and that you understand the index strategy.

Crowded Trade Risk

This risk refers to many ETFs opening up in the same sector. It can be great to have lots of choice but be wary of investing in new assets as they may have limits of liquidity.

When building your portfolio, it is best to first invest in assets that are well-established on the market.

ETF Trading Risk

ETFs differ from mutual funds in that they are not always available with zero transaction costs. While you may see a good return on your investment, trading costs can quickly eat into your returns.

It is important that you understand ETF liquidity and research the best value ETFs to buy.

Broken ETF Risk

When ETFs work as they are supposed to, they are a great way to invest. However, factors can fail, and things can break. This can lead to a disruption in prices and the possibility that you could lose your money.

The best way to minimize risk is to do plenty of research before investing. You should bear in mind that even with the best international ETFs to buy, there is always risk and that is the chance you take with ETF investments.

Frequently Asked Questions

When it comes to the best growth ETFs to buy, among the top performing ETFs for 2024 are VanEck Crypto and Blockchain Innovators UCITS ETF (DAGB) and Global X Blockchain UCITS ETF USD Accumulating (BKCG).

Growth ETFs can be a great investment as they can generate higher returns on a long-term basis. However, even the best growth ETFs to buy come with risk which you need to understand before investing.

As of November 2023, the best S&P 500 growth ETF is SPDR S&P 500 ETF Trust (SPY). It has net assets of $382.2 billion.

With a 10-year return of 23.19%, Invesco Dynamic Semiconductors ETF is the best performing ETF over a decade.

SPHQ has outperformed the S&P 500 over five and 10-year time frames.

The S&P 500 ETF has a brilliant track record of delivering returns for investors and is a great choice if you are wanting to invest in the broader market. Make sure you research the best S&P ETFs to buy.

You can choose both, which would provide you with a diverse portfolio. Take time to research the best ETFs to buy for beginners.

Final Thoughts

ETFs are a great way for some people to invest. From gold to gas, and silver to clean energy, there are lots of options available for people to invest in when choosing the best ETF to buy today. However, you should be aware of the risk that comes with investing.

We have highlighted some of the best international ETFs to buy but ensure you thoroughly research the company you are thinking of investing in, and only pay what you can afford to lose.

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