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.

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© 2021 BlackRock Inc. All rights reserved.

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

FAQs

What are the different 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 does BlackRock have? ›

BlackRock has 429 ETFs listed with a total of 2,670.07B 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 for dummies? ›

A cross between an index fund and a stock, they're transparent, easy to trade, and tax-efficient. They're also enticing because they consist of a bundle of assets (such as an index, sector, or commodity), so diversifying your portfolio is easy. You might have even seen them offered in your 401(k) or 529 college plan.

What are ETFs in layman's terms? ›

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index.

How many ETFs are there? ›

The number of exchange traded funds (ETFs) worldwide grew markedly during the period from 2003 to 2022. There were 8,754 ETFs globally in 2022, compared to 276 in 2003. As of 2022, ETFs worldwide managed assets up to almost 10 trillion U.S. dollars.

What is the 3 ETF strategy? ›

A three-fund portfolio is a portfolio which uses only basic asset classes — usually a domestic stock "total market" index fund, an international stock "total market" index fund and a bond "total market" index fund.

What are the most popular ETFs from BlackRock? ›

8 of the Best BlackRock Funds to Buy for Your IRA
BlackRock fundExpense ratio
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%
iShares Core Dividend Growth ETF (DGRO)0.08%
4 more rows
Jul 6, 2023

What is BlackRock's ETF called? ›

The largest BlackRock ETF is the iShares Core S&P 500 ETF (IVV).

What is BlackRocks ETF? ›

ETFs provide access to markets across the globe, ranging from specific countries to an asset class like global bonds – and even commodities like gold. Investing in difficult-to-access markets such as emerging markets becomes much more straight forward by investing in ETFs.

How to choose an ETF 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.

What is the downside of ETFs? ›

For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.

Are ETFs good for beginners? ›

The low investment threshold for most ETFs makes it easy for a beginner to implement a basic asset allocation strategy that matches their investment time horizon and risk tolerance. For example, young investors might be 100% invested in equity ETFs when they are in their 20s.

What are the top 10 ETFs? ›

Top sector ETFs
Fund (ticker)YTD performanceExpense ratio
Vanguard Information Technology ETF (VGT)8.6 percent0.10 percent
Financial Select Sector SPDR Fund (XLF)12.4 percent0.09 percent
Energy Select Sector SPDR Fund (XLE)13.5 percent0.09 percent
Industrial Select Sector SPDR Fund (XLI)10.8 percent0.09 percent

How do ETFs make you money? ›

Most ETF income is generated by the fund's underlying holdings. Typically, that means dividends from stocks or interest (coupons) from bonds. Dividends: These are a portion of the company's earnings paid out in cash or shares to stockholders on a per-share basis, sometimes to attract investors to buy the stock.

How do ETFs work examples? ›

An ETF provider takes into account the universe of assets, such as stocks, bonds, commodities, or currencies, and builds a basket of them, each with its own ticker. Investors can buy a share in that basket in the same way they would buy stock in a firm.

Which type of ETF is best? ›

Dividend ETFs

A dividend ETF is usually passively managed, meaning it mechanically tracks an index of dividend-paying firms. This kind of ETF is usually more stable than a total market ETF, and it may be attractive to those looking for investments that produce income, such as retirees.

What is the most popular ETF? ›

Most Popular ETFs by AUM
TickerFundAUM
SPYSPDR S&P 500 ETF Trust$363.23B
IVViShares Core S&P 500 ETF$300.18B
VTIVanguard Total Stock Market ETF$288.78B
VOOVanguard S&P 500 ETF$286.59B
6 more rows

Which ETF is better to invest? ›

Top options include the S&P 500-focused Vanguard 500 ETF or the even broader Vanguard Total Stock Market ETF. They both own hundreds of stocks and have low expense ratios. They provide investors instant exposure to a diversified portfolio of stocks for a very reasonable cost.

Which ETF has the highest return? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
SOXXiShares Semiconductor ETF25.18%
FBGXUBS AG FI Enhanced Large Cap Growth ETN23.78%
ITBiShares U.S. Home Construction ETF23.56%
SOXLDirexion Daily Semiconductor Bull 3x Shares22.55%
93 more rows

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