Different types of ETFs – ETFs simplified | iShares - BlackRock (2024)

Source:

1 Global Business Intelligence, BlackRock, as of 31 May 2021.

2 Diversification does not fully protect you from market risk and does not guarantee returns or eliminate potential for loss.

3 The value of each series of securities will be affected by movements in the price of the commodity to which a particular series of securities is linked, as well as the price of commodities in general, market perception, the creditworthiness of certain Transaction Parties and liquidity of the securities in the secondary market.

4 A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index or security.

5 Counterparty risk is the risk that the counterparty to a derivative could be unable or unwilling to perform its payment obligations.

6 Hedging is a risk management strategy employed to offset losses in investments.

7 Currency hedging is sometimes done as part of a fund’s main investment strategy or within share classes. Currency hedged share classes and funds use derivatives to hedge currency risk. The use of derivatives for a share class could pose a potential risk of contagion (also known as spill-over of risk and liabilities) to other share classes in that fund.

8 With leveraged products, both gains and losses can be magnified. Therefore, the risk of loss may be substantially more than a fund that does not employ leverage. Inverse products track the daily performance of a multiple of the inverse index return. If the value of the index increases, it could have a negative impact on the performance of that product.

This material is prepared by BlackRock (Singapore) Limited (co. registration no. 200010143N) for informational or educational purposes only. This does not constitute an offer or solicitation to purchase or sell in any securities or iShares Funds, nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

There are risks associated with investing, including loss of principal. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. Investment in emerging market countries may involve heightened risks such as increased volatility and lower trading volume, and may be subject to a greater risk of loss than investments in a developed country. Investors should be aware that the price of shares of the iShares Funds, and the income from them (if any), may fall as well as rise, and investors may not get back their original investment. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. iShares Funds are not sponsored, endorsed, issued, sold or promoted by their index providers. For details of the index provider including any disclaimer, please refer to the relevant iShares Fund offer document.

This material contains general information only and is not intended to represent general or specific investment advice. The information does not take into account your financial circ*mstances. An assessment should be made as to whether the information is appropriate for you having regard to your objectives, financial situation and needs. Before investing, you should carefully consider the investment objectives, risks, charges and expenses and all other information contained in the relevant offering documents which is available from BlackRock or the iShares websites.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

The opinions expressed are as of October 2021 and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or distributed without the prior written consent of BlackRock.

The information provided here is not intended to constitute financial, tax, legal or accounting advice. You should consult your own advisers on such matters.

iShares® and BlackRock® are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

© 2021 BlackRock Inc. All rights reserved.

MKTGH1023A/S-3173713

Different types of ETFs – ETFs simplified | iShares - BlackRock (2024)

FAQs

How many ETFs does BlackRock have? ›

BlackRock has 439 ETFs listed with a total of 2,872.67B in assets under management, which makes BlackRock the biggest ETF provider on the U.S. stock market. The funds have an average expense ratio of 0.30%.

What are ETFs simplified? ›

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

What are the three types of ETFs? ›

Common types of ETFs available today
  • Equity ETFs. Equity ETFs track an index of equities. ...
  • Bond/Fixed Income ETFs. It's important to diversify your portfolio2. ...
  • Commodity ETFs3 ...
  • Currency ETFs. ...
  • Specialty ETFs. ...
  • Factor ETFs. ...
  • Sustainable ETFs.

How many ETFs should I own as a beginner? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Which BlackRock fund is best? ›

8 of the Best BlackRock Funds to Buy for Your IRA
BlackRock fundExpense ratio
iShares Core S&P Total U.S. Stock Market ETF (ITOT)0.03%
iShares Global Tech ETF (IXN)0.40%
iShares Russell 1000 Growth ETF (IWF)0.18%
iShares Core U.S. Aggregate Bond ETF (AGG)0.03%
4 more rows
Jul 6, 2023

What is the best-performing ETF? ›

The 10 Best-Performing ETFs for May 2024
  • Direxion HCM Tactical Enhanced US Equity Strategy ETF HCMT.
  • HCM Defender 100 Index ETF QQH.
  • Fidelity Blue Chip Growth ETF FBCG.
  • Invesco S&P 500 Momentum ETF SPMO.
  • Invesco S&P SmallCap Momentum ETF XSMO.
  • Fidelity Nasdaq Composite Index ETF ONEQ.
  • HCM Defender 500 Index ETF LGH.
  • T.
Jun 5, 2024

What is the best ETF to buy and hold? ›

  • Vanguard S&P 500 ETF (VOO)
  • Schwab U.S. Small-Cap ETF (SCHA)
  • iShares Core S&P Mid-Cap ETF (IJH)
  • Invesco QQQ Trust (QQQ)
  • Vanguard High Dividend Yield ETF (VYM)
  • Vanguard Total International Stock ETF (VXUS)
  • Vanguard Total World Stock ETF (VT)
Apr 24, 2024

Which ETF is most traded? ›

Most Popular ETFs: Top 100 ETFs By Trading Volume
SymbolNameAvg Daily Share Volume (3mo)
SQQQProShares UltraPro Short QQQ128,420,391
SPYSPDR S&P 500 ETF Trust59,683,793
SOXLDirexion Daily Semiconductor Bull 3x Shares58,007,535
TQQQProShares UltraPro QQQ57,109,191
96 more rows

How to choose ETFs for beginners? ›

Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.

Can you retire a millionaire with ETFs alone? ›

Investing in the stock market is one of the most effective ways to generate long-term wealth, and you don't need to be an experienced investor to make a lot of money. In fact, it's possible to retire a millionaire with next to no effort through exchange-traded funds (ETFs).

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

How long should you hold an ETF? ›

Holding an ETF for longer than a year may get you a more favorable capital gains tax rate when you sell your investment.

Who owns the most ETFs? ›

iShares. iShares is the largest ETF brand in the United States, with more than 1,250 ETFs on the market and $2.5 trillion in assets under management, or AUM. The issuer behind this mega brand is BlackRock Inc. (ticker: BLK), a global investment management firm.

How many different funds does BlackRock have? ›

As of May 13, 2024, the world's largest asset management company, BlackRock, operated a total of 506 equity funds. This was the highest of any asset class, followed by fixed income assets with 316 funds.

Who is the largest ETF holder? ›

There are five issuers with $100 billion or more in ETF AUM:
  • iShares (BlackRock): $2.59 trillion.
  • Vanguard: $2.36 trillion.
  • SPDR (State Street): $1.22 trillion.
  • Invesco: $454.78 billion.
  • Charles Schwab: $320.21 billion3.
Mar 6, 2024

How many ETFs are there? ›

The number of exchange-traded funds (ETFs) in the United States has steadily increased; Starting with 123 ETFs in 2003, this amount has grown to a total of 3,243 ETFs as of 2023. The value of assets under management (AUM) allocated to ETFs in the United States has experienced a sharp increase.

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