In this article, we discuss the 5 best ETFs to invest in for retirement. If you want to read about some more retirement ETFs, go directly to 10 Best ETFs to Invest In for Retirement.
5. Vanguard Real Estate Index Fund (NYSE:VNQ)
Vanguard Real Estate Index Fund (NYSE:VNQ) is an exchange traded fund that invests exclusively in stocks that real estate investment trusts (REITs) invest in. REITs usually invest in firms purchasing office buildings, hotels, and other real property.
A premier holding of the Vanguard Real Estate Index Fund (NYSE:VNQ) is Prologis, Inc. (NYSE:PLD), a real estate investment trust that focuses on high-barrier markets. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm AEW Capital Management is a leading shareholder in Prologis, Inc. (NYSE:PLD) with 2.1 million shares worth more than $358 million.
In its Q1 2021 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Prologis, Inc. (NYSE:PLD) was one of them. Here is what the fund said:
“Prologis, Inc. (NYSE:PLD) (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis, Inc. (NYSE:PLD) (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
4. iShares Core S&P 500 ETF (NYSE:IVV)
iShares Core S&P 500 ETF (NYSE:IVV) is an exchange traded fund that invests at least 90% of net assets securities on an index that tracks the performance of the largest companies in the US by market capitalization.
iShares Core S&P 500 ETF (NYSE:IVV) has a PE Ratio of 3.22. The 52-week price range of the ETF lies between $406 and $482. It has an average volume of 8,667,283. The fund aims to offer instant access to a diversified bunch of stocks through a single trade.
3. Schwab U.S. Small-Cap ETF (NYSE:SCHA)
Schwab U.S. Small-Cap ETF (NYSE:SCHA) is an exchange traded fund that invests at least 90% of net assets in companies on the Dow Jones U.S. Small-Cap Total Stock Market Index. The index is a float-adjusted market capitalization weighted index.
One of the biggest holdings of the Schwab U.S. Small-Cap ETF (NYSE:SCHA) is Cloudflare, Inc. (NYSE:NET), a firm that owns and runs a cloud platform. At the end of the fourth quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Cloudflare, Inc. (NYSE:NET), up from 50 in the previous quarter worth $958 million.
In its Q4 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE:NET) was one of them. Here is what the fund said:
“Cloudflare, Inc. (NYSE:NET) has an ambitious mission of helping to build a better internet by providing a broad range of network services to businesses of all sizes to help make their networks more secure, more reliable and less costly. The Cloudflare, Inc. (NYSE:NET) platform has been built from the ground up ona single software stack with a “serverless” network architecture, which has positioned the company to quickly expand its product offerings and network using commodity network hardware. By doing so, the company provides its customers with a flexible, scalable and affordable network platform.
The stock outperformed after the company reported a robust third quarter that exceeded expectations across key metrics. Cloudflare, Inc. (NYSE:NET) also raised its fiscal year 2021 guidance by 3%. The outperformance was driven by strong customer growth, particularly from large customers, as well as the adoption of new products by existing customers. The company added 170 large customers compared to 143 during the second quarter. Cloudflare also stated that the fourth quarter was off to a strong start including a new $1 million annual contract with a large social networking company and an $8 million deal with a large video conferencing service.”
2. The Real Estate Select Sector SPDR Fund (NYSE:XLRE)
The Real Estate Select Sector SPDR Fund (NYSE:XLRE) is an exchange traded fund that invests at least 95% of total assets in securities on an index that tracks the performance of firms working in real estate management, development and REIT sectors.
A flagship holding of the The Real Estate Select Sector SPDR Fund (NYSE:XLRE) is American Tower Corporation (NYSE:AMT), an REIT that invests in communications infrastructure. At the end of the fourth quarter of 2021, 53 hedge funds in the database of Insider Monkey held stakes worth $4.7 billion in American Tower Corporation (NYSE:AMT), compared to 61 in the previous quarter worth $4.4 billion.
In its Q2 2021 investor letter, ClearBridge Investments highlighted a few stocks and American Tower Corporation (NYSE:AMT) was one of them. Here is what the fund said:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. communications company American Tower Corporation (NYSE:AMT) was one of the lead performers. American Tower is a leading independent owner, operator and developer of wireless and broadcast communications infrastructure. The company has 41,000 sites in the U.S. and a further 139,000 sites across 19 countries, predominantly emerging markets (India 75k, Latin America 40k and Africa 18k). American Tower Corporation (NYSE:AMT) performed well after the U.S. network operators announced plans to deploy 5G spectrum, with investment much larger and much sooner than the market was anticipating.”
1. Energy Select Sector SPDR Fund (NYSE:XLE)
Energy Select Sector SPDR Fund (NYSE:XLE) is an exchange traded fund that tracks the investment returns of the Energy Select Sector Index. The index comprises firms working in the oil, gas, consumable fuels, and energy equipment and services sectors.
One of the top holdings of the Energy Select Sector SPDR Fund (NYSE:XLE) is Exxon Mobil Corporation (NYSE:XOM), an Texas-based oil and gas firm. At the end of the fourth quarter of 2021, 71 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Exxon Mobil Corporation (NYSE:XOM), compared to 64 in the previous quarter worth $4.6 billion.
In its Q4 2021 investor letter, Saturna Capital highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon Mobil Corporation (NYSE:XOM), which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
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