9/24/2023 0 Comments Spy max drawdown![]() It didn’t help that QQQJ was loaded with many high growth, high multiple technology companies that experienced sharp drawdowns in the following 2022 correction. ![]() That being said, the ETF was introduced to the market at the end of 2020, which was the frothiest market in more than a decade. Unlike the others, QQQJ has experienced mediocre returns since inception. QQQJ has a slightly higher expense ratio of 0.15%. QQQJ provides investors with exposure to a diversified portfolio of smaller and mid-cap companies listed on the NASDAQ stock exchange, focusing on innovative and growth-oriented sectors. The Invesco NASDAQ Next Gen 100 ETF is an exchange-traded fund that aims to track the performance of the NASDAQ Next Generation 100 Index. The three largest holdings in the ETF are United Health Group UNH, Johnson and Johnson JNJ, and Eli Lilly LLY, which together make up 25% of the fund. SPY’s best year was 32%, its worst year was -18%, and its max drawdown was -24%. In the last ten years XLV’s best year was +41%, while its worst year was -5%, and a max drawdown of -13%. Like VIG, XLV also has superior risk adjusted returns than the S&P 500. It has delivered an average annual return of 12.2% during that period, which is better than the S&P 500. XLV has displayed a solid performance record over the past decade. With an expense ratio of 0.12% and a minimum investment requirement of $1, XLV offers an attractive option for investors seeking exposure to the healthcare sector. The Health Care Select Sector SPDR Fund is an ETF that aims to mirror the performance of the S&P 500 health care sector. Some of the top names in VIG include Microsoft MSFT, Exxon Mobil XOM, and Home Depot HD. Companies that do so have historically been steadier stocks with less volatile ups and downs. This lower volatility can be attributed to the fact that VIG invests in stocks that have a history of growing their dividend payments. Additionally, SPY’s worst year in the last ten years was -18%, while VIG’s worst year was -9.8%. SPY, an ETF that reflects the S&P 500 has had a max drawdown of -24% vs. Additionally, although it has underperformed the S&P 500 YTD and has slightly lower annual returns it is also less volatile than the index. Over that time, it has returned an average of 10.7% annually, and has a YTD return of 1.4%. VIG has a very strong 10-year performance record. Investors looking for exposure to disruptive technologies or emerging market leaders can find opportunities within these ETFs. These ETFs offer exposure to dynamic and innovative companies that may not be included in traditional market indices. Investing in such ETFs allows investors to tap into the potential of emerging technologies, breakthrough treatments, and demographic trends, providing an opportunity to benefit from the long-term growth prospects of these sectors.Īccess to Emerging Companies: ETFs like QQQJ focus on smaller and mid-cap companies that show promise for future growth. These ETFs typically focus on high-quality, dividend-paying companies that have a history of delivering steady returns, making them attractive options for income-oriented investors.Įxposure to Innovative Sectors: ETFs like XLV provide exposure to specific sectors, such as healthcare, which are poised for growth and innovation. Stability and Consistent Income: ETFs tracking established indices, such as VIG, offer stability and the potential for consistent income. By investing in a single ETF, investors gain exposure to a broad range of stocks, reducing the risk associated with investing in individual companies. These ETFs offer a range of benefits, from stability and consistent income to exposure to innovative companies and sectors, making them compelling choices for investors aiming to build a robust and enduring portfolio.ĭiversification: ETFs provide instant diversification by pooling together a basket of securities across various sectors, industries, or asset classes. In this article, we highlight three top-ranked ETFs, VIG (Zacks ETF Rank #1), XLV (Zacks ETF Rank #1), and QQQJ (Zacks ETF Rank #2). With their unique advantages, ETFs have gained popularity among both seasoned investors and those new to the market. Investors seeking long-term growth and diversification often turn to Exchange-Traded Funds (ETFs) as a reliable investment option.
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