In this article, we discuss top 5 ETFs for beginners. If you want to see more ETFs in this selection, click Top 10 ETFs For Beginners.
5. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW)
NAV as of September 30: $53.826
WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) seeks to track the investment results of large-cap US dividend-paying companies with growth characteristics. As of September 30, the total net assets amount to $6.3 billion and the fund has an expense ratio of 0.28%. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) was founded on May 22, 2013. It is one of the best ETFs for beginners.
Johnson & Johnson (NYSE:JNJ), the American multinational healthcare firm, is the largest holding of WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW). On September 14, Johnson & Johnson (NYSE:JNJ) announced that its board has authorized to buy back up to $5 billion worth of common stock. The company also reaffirmed its full-year 2022 outlook of adjusted operational sales growth of 6.5% to 7.5%.
According to Insider Monkey’s data, 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) at the end of the second quarter of 2022, with combined stakes worth $6.7 billion. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 6.5 million shares worth $1.16 billion.
Here is what Distillate Capital has to say about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:
“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
4. First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN)
NAV as of September 30: $24.52
First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) seeks to track the investment results of Nasdaq US Smart Oil & Gas Index, which provides exposure to the US oil and gas industry. The expense ratio came in at 0.60% and the total net assets exceed $1 billion as of September 30. First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) has 40 stocks in its portfolio.
One of the premier holdings of First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) is Occidental Petroleum Corporation (NYSE:OXY), an American company that engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Warren Buffett’s Berkshire Hathaway holds the leading position in Occidental Petroleum Corporation (NYSE:OXY), owning about 20% of the company’s total stock.
Here’s how Smead Capital Management mentioned Occidental Petroleum Corporation (NYSE:OXY) in its Q2 2022 investor letter:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and ConocoPhillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
3. Invesco DWA SmallCap Momentum ETF (NASDAQ:DWAS)
NAV as of September 30: $68.50
Another notable ETF for beginners is Invesco DWA SmallCap Momentum ETF (NASDAQ:DWAS), which follows the performance of the Dorsey Wright SmallCap Technical Leaders Index. The fund focuses on small-cap firms and the expense ratio came in at 0.60%. As of September 30, Invesco DWA SmallCap Momentum ETF (NASDAQ:DWAS) holds 201 stocks in its portfolio.
CONSOL Energy Inc. (NYSE:CEIX), a Pennsylvania-based producer and exporter of bituminous coal, is one of the top holdings of Invesco DWA SmallCap Momentum ETF (NASDAQ:DWAS). On August 8, B. Riley analyst Lucas Pipes raised the price target on CONSOL Energy Inc. (NYSE:CEIX) to $79 from $63 and kept a Buy rating on the shares following the “strong” Q2 results.
According to Insider Monkey’s data, 23 hedge funds were bullish on CONSOL Energy Inc. (NYSE:CEIX) at the end of June 2022, compared to 22 funds in the preceding quarter. David Einhorn’s Greenlight Capital is the leading stakeholder of the company, with 1.6 million shares worth about $81 million.
Here is what Greenlight Capital has to say about CONSOL Energy Inc. (NYSE:CEIX) in its Q2 2022 investor letter:
“CONSOL Energy (NYSE:CEIX). The shares ended the quarter at $49.38. Though it trades at a nosebleed 2.6x book value, we expect the company to generate approximately $50 per share in after-tax free cash flow by the end of 2023. Capital returns have not yet begun, but we expect they will shortly.”
2. Global X Conscious Companies ETF (NASDAQ:KRMA)
NAV as of September 30: $25.96
Global X Conscious Companies ETF (NASDAQ:KRMA) seeks to track the performance and investment results of the Concinnity Conscious Companies Index. Global X Conscious Companies ETF (NASDAQ:KRMA) exposes investors to well-managed companies that exhibit positive Environmental, Social and Corporate Governance (ESG) characteristics. The ETF has net assets of $595.58 million and a total expense ratio of 0.43% as of September 29.
One of the biggest stocks in Global X Conscious Companies ETF (NASDAQ:KRMA)’s portfolio is ConocoPhillips (NYSE:COP), an American multinational corporation engaged in hydrocarbon exploration and production. On September 12, Piper Sandler analyst Ryan Todd raised the price target on ConocoPhillips (NYSE:COP) to $134 from $123 and kept an Overweight rating on the shares, citing a constructive stance of the integrated oils group.
Among the hedge funds tracked by Insider Monkey, 71 hedge funds were bullish on ConocoPhillips (NYSE:COP) at the end of June 2022, compared to 67 funds in the last quarter. Ken Fisher’s Fisher Asset Management held the biggest stake in the company, with 6.7 million shares worth $607.2 million.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about ConocoPhillips (NYSE:COP) in its Q1 2022 investor letter:
“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holdings ConocoPhillips (NYSE:COP) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”
1. iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU)
NAV as of September 30: $79.40
iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU) tracks the investment results of MSCI USA Extended ESG Focus Index, offering exposure to large and mid-cap U.S. stocks, favoring companies with feasible environmental, social and governance (ESG) ratings. As of September 30, the net assets came in at over $20 billion, and the ETF has 312 holdings. The expense ratio stood at 0.15%. iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU) is one of the best ETFs for beginners.
UnitedHealth Group Incorporated (NYSE:UNH), an American multinational managed healthcare and insurance company, is one of the top holdings of iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU). On September 22, Raymond James analyst John Ransom raised the price target on UnitedHealth Group Incorporated (NYSE:UNH) to $635 from $620 and maintained a Strong Buy rating on the shares.
According to Insider Monkey’s Q2 data, 91 hedge funds were long UnitedHealth Group Incorporated (NYSE:UNH), compared to 103 funds in the last quarter. Rajiv Jain’s GQG Partners is the biggest position holder in the company, with more than 3 million shares worth $1.60 billion.
Here is what Distillate Capital has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2022 investor letter:
“UnitedHealth Group was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
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