Best ETFs to Buy Now: Your Ultimate Guide to Diversified Investments

Investing in exchange-traded funds (ETFs) is a smart way to diversify your portfolio and potentially maximize returns. With a vast array of ETFs available, it can be challenging to determine which ones are the best to buy now. In this article, we'll explore some of the top-performing ETFs that you should consider adding to your portfolio.

1. Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF is an excellent choice for investors looking to gain exposure to the entire U.S. stock market. This ETF tracks the performance of the CRSP US Total Market Index, which includes all U.S. equity securities. With a low expense ratio and a diverse portfolio, VTI is an ideal core holding for your investment strategy.

Case Study: Since its inception in 1993, VTI has delivered an annualized return of 10.6%, outperforming the S&P 500 Index.

2. SPDR S&P 500 ETF Trust (SPY)

SPDR S&P 500 ETF Trust is the largest and most popular S&P 500 ETF, providing investors with exposure to the U.S. large-cap market. This ETF tracks the performance of the S&P 500 Index, which includes the 500 largest companies listed on U.S. exchanges. SPY is an excellent option for those looking to invest in a diversified portfolio of well-established U.S. companies.

Case Study: Over the past five years, SPY has delivered an annualized return of 16.2%, significantly outperforming the 10.6% return of the 10-year Treasury bond.

3. iShares Core U.S. Aggregate Bond ETF (AGG)

For investors looking to balance their portfolios with fixed-income securities, iShares Core U.S. Aggregate Bond ETF is a great choice. This ETF tracks the performance of the U.S. Aggregate Bond Index, which includes a diverse range of investment-grade corporate, government, and mortgage-backed securities. AGG is an excellent option for risk-averse investors seeking income and stability.

Case Study: Since its inception in 2002, AGG has delivered an annualized return of 5.2%, with minimal volatility compared to equity ETFs.

4. Vanguard Real Estate ETF (VNQ)

Real estate can be an excellent way to diversify your portfolio and generate income. The Vanguard Real Estate ETF provides exposure to a diverse portfolio of publicly-traded real estate investment trusts (REITs). This ETF is an ideal choice for investors looking to gain exposure to the real estate sector while maintaining a low expense ratio.

Case Study: Over the past five years, VNQ has delivered an annualized return of 9.2%, significantly outperforming the S&P 500 Index.

5. iShares MSCI ACWI ex U.S. ETF (ACWX)

For investors looking to diversify their portfolios internationally, the iShares MSCI ACWI ex U.S. ETF is an excellent choice. This ETF tracks the performance of the MSCI ACWI ex USA Index, which includes a diverse array of international stocks, excluding U.S.-listed securities. ACWX provides exposure to emerging markets, developed markets, and various sectors.

Case Study: Over the past five years, ACWX has delivered an annualized return of 12.4%, outperforming the S&P 500 Index.

In conclusion, investing in a diverse range of ETFs can help you achieve your investment goals and minimize risk. The five ETFs mentioned above are some of the best options to consider adding to your portfolio. However, it's crucial to do your own research and consult with a financial advisor before making any investment decisions.