Best ETFs

U.S. News has identified exchange-traded funds best suited for long-term investors seeking low-cost, diversified portfolios. Our rankings compare the cost and structure of hundreds of ETFs. Read more about our Best Fit ranking methodology.

Basic Materials

#1

Vanguard Materials Index Fund (VAW)

Performance (1-YR): 23.21% Expense Ratio: 0.14%

#2

SPDR S&P Metals & Mining ETF (XME)

Performance (1-YR): 5.76% Expense Ratio: 0.35%

#3

iShares S&P Global Materials Sector Index Fund (MXI)

Performance (1-YR): 10.52% Expense Ratio: 0.48%

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Capital Appreciation

#1

Vanguard Europe Pacific ETF (VEA)

Performance (1-YR): 32.55% Expense Ratio: 0.16%

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Consumer Goods

#1

Vanguard Consumer Staples Index Fund (VDC)

Performance (1-YR): 25.93% Expense Ratio: 0.14%

#2

iShares Dow Jones US Consumer Goods Sector Index Fund (IYK)

Performance (1-YR): 26.84% Expense Ratio: 0.48%

#3

SPDR S&P Homebuilders ETF (XHB)

Performance (1-YR): 52.91% Expense Ratio: 0.35%

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Consumer Services

#1

Vanguard Consumer Discretionary Index Fund (VCR)

Performance (1-YR): 34.29% Expense Ratio: 0.14%

#2

Consumer Discretionary Select Sector SPDR Fund (XLY)

Performance (1-YR): 33.22% Expense Ratio: 0.21%

#3

iShares Dow Jones US Consumer Services Sector Index Fund (IYC)

Performance (1-YR): 33.28% Expense Ratio: 0.48%

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Emerging Markets Debt

#1

Market Vectors Emerging Markets Local Currency Bond ETF (EMLC)

Performance (1-YR): 15.01% Expense Ratio: 0.49%

#2

SPDR Barclays Emerging Markets Local Bond ETF (EBND)

Performance (1-YR): 13.03% Expense Ratio: 0.50%

#3

iShares Emergine Markets Local Currency Bond Fund (LEMB)

Performance (1-YR): 11.92% Expense Ratio: 0.60%

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Emerging Markets

#1

BLDRS Emerging Markets 50 ADR Index Fund (ADRE)

Performance (1-YR): 8.48% Expense Ratio: 0.30%

#2

Schwab Emerging Markets Equity ETF (SCHE)

Performance (1-YR): 17.52% Expense Ratio: 0.15%

#3

iShares MSCI Emerging Markets Asia Index Fund (EEMA)

Performance (1-YR): 18.74% Expense Ratio: 0.49%

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Financial Services

#1

Vanguard Financials Index Fund (VFH)

Performance (1-YR): 38.61% Expense Ratio: 0.19%

#2

SPDR S&P Regional Banking ETF (KRE)

Performance (1-YR): 23.20% Expense Ratio: 0.35%

#3

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)

Performance (1-YR): 20.55% Expense Ratio: 0.35%

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Flexible Portfolio

#1

IQ Hedge Multi-Strategy Tracker ETF (QAI)

Performance (1-YR): 5.84% Expense Ratio: 0.75%

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Gold Oriented

#1

iShares COMEX Gold Trust (IAU)

Performance (1-YR): 10.93% Expense Ratio: 0.25%

#2

PowerShares DB Gold Fund (DGL)

Performance (1-YR): 12.36% Expense Ratio: 0.50%

#3

Market Vectors Gold Miners ETF (GDX)

Performance (1-YR): 36.52% Expense Ratio: 0.55%

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Growth & Income

#1

Vanguard Total Stock Market Index Fund (VTI)

Performance (1-YR): 27.83% Expense Ratio: 0.06%

#2

iShares S&P Growth Allocation Fund (AOR)

Performance (1-YR): 16.77% Expense Ratio: 0.32%

#3

iShares S&P Moderate Allocation Fund (AOM)

Performance (1-YR): 12.16% Expense Ratio: 0.31%

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Growth

#1

SPDR S&P 500 Growth ETF (SPYG)

Performance (1-YR): 23.29% Expense Ratio: 0.20%

#2

SPDR S&P 600 Small Cap Growth ETF (SLYG)

Performance (1-YR): 26.64% Expense Ratio: 0.25%

#3

Vanguard S&P 500 Growth ETF (VOOG)

Performance (1-YR): 23.49% Expense Ratio: 0.15%

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Health/Biotechnology

#1

Guggenheim S&P 500 Equal Weight Health Care ETF (RYH)

Performance (1-YR): 35.50% Expense Ratio: 0.50%

#2

Vanguard Health Care Index Fund (VHT)

Performance (1-YR): 37.12% Expense Ratio: 0.14%

#3

SPDR S&P Pharmaceuticals ETF (XPH)

Performance (1-YR): 27.00% Expense Ratio: 0.35%

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Income

#1

WisdomTree Dividend ex-Financials Fund (DTN)

Performance (1-YR): 29.29% Expense Ratio: 0.38%

#2

Schwab US Dividend Equity ETF (SCHD)

Performance (1-YR): 28.23% Expense Ratio: 0.07%

#3

Vanguard High Dividend Yield Index Fund (VYM)

Performance (1-YR): 27.95% Expense Ratio: 0.20%

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Industrials

#1

Vanguard Industrials Index Fund (VIS)

Performance (1-YR): 29.67% Expense Ratio: 0.14%

#2

iShares Dow Jones US Industrial Sector Index Fund (IYJ)

Performance (1-YR): 29.35% Expense Ratio: 0.48%

#3

iShares S&P Global Industrials Sector Index Fund (EXI)

Performance (1-YR): 29.25% Expense Ratio: 0.48%

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Infrastructure

#1

iShares S&P Global Infrastructure Index Fund (IGF)

Performance (1-YR): 20.06% Expense Ratio: 0.48%

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Large-Cap

#1

iShares MSCI USA Index Fund (EUSA)

Performance (1-YR): 27.09% Expense Ratio: 0.15%

#2

iShares Dow Jones US Index Fund (IYY)

Performance (1-YR): 27.47% Expense Ratio: 0.20%

#3

Vanguard Russell 1000 ETF (VONE)

Performance (1-YR): 27.51% Expense Ratio: 0.12%

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Long/Short Equity

#1

PowerShares S&P 500 BuyWrite Portfolio (PBP)

Performance (1-YR): 9.34% Expense Ratio: 0.75%

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Micro-Cap

#1

iShares Russell Microcap Index Fund (IWC)

Performance (1-YR): 31.00% Expense Ratio: 0.68%

#2

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Performance (1-YR): 29.16% Expense Ratio: 0.60%

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Mid-Cap

#1

Vanguard S&P Mid-Cap 400 ETF (IVOO)

Performance (1-YR): 29.47% Expense Ratio: 0.15%

#2

Schwab U.S. Mid-Cap ETF (SCHM)

Performance (1-YR): 31.60% Expense Ratio: 0.07%

#3

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

Performance (1-YR): 33.36% Expense Ratio: 0.39%

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Municipal Debt

#1

iShares S&P California Municipal Bond Fund (CMF)

Performance (1-YR): 4.14% Expense Ratio: 0.25%

#2

iShares S&P Short Term National Municipal Bond Fund (SUB)

Performance (1-YR): 0.29% Expense Ratio: 0.25%

#3

iShares S&P New York Municipal Bond Fund (NYF)

Performance (1-YR): 3.14% Expense Ratio: 0.25%

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Natural Resources

#1

Vanguard Energy Index Fund (VDE)

Performance (1-YR): 24.93% Expense Ratio: 0.14%

#2

SPDR S&P Oil & Gas Equipment & Services ETF (XES)

Performance (1-YR): 29.20% Expense Ratio: 0.36%

#3

iShares MSCI Global Select Metals & Mining Producers Fund (PICK)

Performance (1-YR): 0.14% Expense Ratio: 0.39%

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Real Estate

#1

Schwab U.S. REIT ETF (SCHH)

Performance (1-YR): 20.88% Expense Ratio: 0.07%

#2

SPDR Dow Jones REIT ETF (RWR)

Performance (1-YR): 20.57% Expense Ratio: 0.25%

#3

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)

Performance (1-YR): 47.35% Expense Ratio: 0.35%

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Science & Technology

#1

Guggenheim S&P 500 Equal Weight Technology ETF (RYT)

Performance (1-YR): 28.75% Expense Ratio: 0.50%

#2

Vanguard Information Technology Index Fund (VGT)

Performance (1-YR): 14.59% Expense Ratio: 0.14%

#3

First Trust NASDAQ-100 Technology Sector Index Fund (QTEC)

Performance (1-YR): 19.54% Expense Ratio: 0.60%

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Small-Cap

#1

SPDR S&P 600 Small Cap ETF (SLY)

Performance (1-YR): 30.05% Expense Ratio: 0.20%

#2

PowerShares S&P SmallCap Information Technology Portfolio (PSCT)

Performance (1-YR): 25.19% Expense Ratio: 0.29%

#3

Schwab U.S. Small-Cap ETF (SCHA)

Performance (1-YR): 31.46% Expense Ratio: 0.08%

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Specialty: Equity

#1

FlexShares Morningstar US Market Factors Tilt Index Fund (TILT)

Performance (1-YR): 29.77% Expense Ratio: 0.27%

#2

iShares KLD 400 Social Index Fund (DSI)

Performance (1-YR): 28.78% Expense Ratio: 0.50%

#3

iShares KLD Select Social Index Fund (KLD)

Performance (1-YR): 24.90% Expense Ratio: 0.50%

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Telecommunication

#1

Vanguard Telecommunication Services Index Fund (VOX)

Performance (1-YR): 30.50% Expense Ratio: 0.14%

#2

iShares S&P North American Technology-Multimedia Networking Index Fund (IGN)

Performance (1-YR): 16.63% Expense Ratio: 0.48%

#3

iShares S&P Global Telecommunications Sector Index Fund (IXP)

Performance (1-YR): 19.29% Expense Ratio: 0.48%

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U.S. Mortgage

#1

Vanguard Mortgage-Backed Securities ETF (VMBS)

Performance (1-YR): 0.31% Expense Ratio: 0.15%

#2

iShares Barclays MBS Bond Fund (MBB)

Performance (1-YR): 0.35% Expense Ratio: 0.34%

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Utility

#1

Vanguard Utilities Index Fund (VPU)

Performance (1-YR): 16.32% Expense Ratio: 0.14%

#2

iShares Dow Jones US Utilities Sector Index Fund (IDU)

Performance (1-YR): 15.83% Expense Ratio: 0.48%

#3

iShares S&P Global Utilities Sector Index Fund (JXI)

Performance (1-YR): 15.34% Expense Ratio: 0.48%

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Value

#1

SPDR S&P 600 Small Cap Value ETF (SLYV)

Performance (1-YR): 32.98% Expense Ratio: 0.25%

#2

SPDR S&P 500 Value ETF (SPYV)

Performance (1-YR): 32.77% Expense Ratio: 0.20%

#3

Schwab U.S. Large-Cap Value ETF (SCHV)

Performance (1-YR): 29.89% Expense Ratio: 0.07%

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Updated 05.23.2013

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Top Performing ETFs as of 05.03.2013

Guggenheim Solar ETF (TAN)

Global Equity | Natural Resources Funds

Total Return: 26.70%

Global X FTSE Greece 20 ETF (GREK)

Global Equity | European Region Funds

Total Return: 16.89%

iShares S&P Global Clean Energy Index Fund (ICLN)

Global Equity | Natural Resources Funds

Total Return: 14.50%

* annualized