What is the most volatile ETF in the US?
The largest Volatility ETF is the Simplify Volatility Premium ETF SVOL with $678.22M in assets. In the last trailing year, the best-performing Volatility ETF was SVIX at 114.33%. The most recent ETF launched in the Volatility space was the Volatility Shares -1x Short VIX Mid-Term Futures Strategy ETF ZIVB on 04/19/23.
These products are almost exclusively leveraged, usually offering traders 2x or 3x the returns of an underlying index. The Direxion Daily Junior Gold Miners Index Bull 3x Shares (JNUG) and the Direxion Daily Junior Gold Miners Index Bear 3x Shares (JDST) are the two most volatile exchange-traded funds of all.
The largest Low Volatility ETF is the iShares MSCI USA Min Vol Factor ETF USMV with $26.24B in assets. In the last trailing year, the best-performing Low Volatility ETF was RNEM at 18.26%. The most recent ETF launched in the Low Volatility space was the THOR Low Volatility ETF THLV on 09/12/22.
| Highest Volume (unleveraged) | SPY | QQQ |
|---|---|---|
| Most Volatile (leveraged) | LABD | UVXY |
| Most Volatile (unleveraged) | BITO | XBI |
| Best ETFs for cash accounts | SPY/SH | TQQQ/SQQQ |
| Symbol | Name | 5-Year Return |
|---|---|---|
| MGK | Vanguard Mega Cap Growth ETF | 20.19% |
| QTEC | First Trust NASDAQ-100 Technology Sector Index Fund | 20.07% |
| PAVE | Global X US Infrastructure Development ETF | 19.92% |
| SCHG | Schwab U.S. Large-Cap Growth ETF | 19.84% |
Importantly, the 4x leveraged S&P 500 fund is not an ETF, but is an ETN, or exchange traded note. The major difference is that ETNs carry credit risk and can shut down if the counterparty to the fund decides that they no longer want exposure to the fund.
The objective of the ETP Securities is to provide 5 times the value of the daily performance of the SPDR S&P 500 ETF Trust Exchange Traded Fund, net of fees and expenses.
- 9 Safest Index Funds and ETFs to buy in 2024. ...
- Vanguard S&P 500 ETF (VOO -0.51%) ...
- Vanguard High Dividend Yield ETF (VYM -0.26%) ...
- Vanguard Real Estate ETF (VNQ -1.03%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT -0.53%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.15%)
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.80B in assets. In the last trailing year, the best-performing Aggressive ETF was EAOA at 11.30%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
What ETFs does Warren Buffett hold?
Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (VOO 1.03%) and the SPDR S&P 500 ETF Trust (SPY 1.05%).
These are VanEck Vectors Semiconductor ETF SMH, Invesco NASDAQ 100 ETF QQQM, Communication Services Select Sector SPDR Fund XLC, Vanguard Mega Cap Growth ETF MGK, and Vanguard Consumer Discretionary ETF VCR.
If you buy substantially identical security within 30 days before or after a sale at a loss, you are subject to the wash sale rule. This prevents you from claiming the loss at this time.
| Symbol | Name | Avg Daily Share Volume (3mo) |
|---|---|---|
| TQQQ | ProShares UltraPro QQQ | 79,416,555 |
| SPY | SPDR S&P 500 ETF Trust | 77,216,766 |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 64,930,887 |
| TLT | iShares 20+ Year Treasury Bond ETF | 49,251,891 |
| Symbol | Name | Dividend Yield |
|---|---|---|
| TILL | Teucrium Agricultural Strategy No K-1 ETF | 53.87% |
| OARK | YieldMax Innovation Option Income Strategy ETF | 40.15% |
| CONY | YieldMax COIN Option Income Strategy ETF | 36.90% |
| RATE | Global X Interest Rate Hedge ETF | 32.36% |
In fact, an ETF called the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), launched in 2013, currently boasts an eye-catching yield of 12%. While the ETF holds appeal for income investors, there are also several things that investors should be aware of before jumping in right after seeing that eye-popping yield.
Because leveraged single-stock ETFs in particular amplify the effect of price movements of the underlying individual stocks, investors holding these funds will experience even greater volatility and risk than investors who hold the underlying stock itself.
A leveraged ETF uses derivative contracts to magnify the daily gains of an index or benchmark. These funds can offer high returns, but they also come with high risk and expenses. Funds that offer 3x leverage are particularly risky because they require higher leverage to achieve their returns.
- ProShares UltraPro QQQ (TQQQ) ...
- Direxion Daily Semiconductor Bull 3X Shares (SOXL) ...
- ProShares Ultra S&P 500 (SSO) ...
- Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF) ...
- Direxion Daily Energy Bull 2x Shares (ERX) ...
- ProShares Ultra VIX Short-Term Futures ETF (UVXY)
For most personal investors, an optimal number of ETFs to hold would be 5 to 10 across asset classes, geographies, and other characteristics. Thereby allowing a certain degree of diversification while keeping things simple.
Is 8 ETFs too many?
Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.
| Symbol | ETF Name | Dividend Date |
|---|---|---|
| SSO | ProShares Ultra S&P 500 | 2023-12-20 |
| SPUU | Direxion Daily S&P 500 Bull 2x Shares | 2023-12-21 |
Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.
At any given time, the spread on an ETF may be high, and the market price of shares may not correspond to the intraday value of the underlying securities. Those are not good times to transact business. Make sure you know what an ETF's current intraday value is as well as the market price of the shares before you buy.
