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.

Capital Appreciation

#1

Vanguard Europe Pacific ETF (VEA)

Performance (1-YR): 35.28% Expense Ratio: 0.16%

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China Region

#1

PowerShares Golden Dragon China Portfolio (PGJ)

Performance (1-YR): 11.53% Expense Ratio: 0.60%

#2

iShares MSCI China Index Fund (MCHI)

Performance (1-YR): 20.37% Expense Ratio: 0.61%

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Corporate Debt

#1

Guggenheim BulletShares 2013 Corporate Bond ETF (BSCD)

Performance (1-YR): 1.04% Expense Ratio: 0.24%

#2

SPDR Barclays Long Term Corporate Bond ETF (LWC)

Performance (1-YR): 6.66% Expense Ratio: 0.15%

#3

SPDR Barclays Intermediate Term Corporate Bond ETF (ITR)

Performance (1-YR): 5.84% Expense Ratio: 0.15%

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Emerging Markets Debt

#1

SPDR Barclays Emerging Markets Local Bond ETF (EBND)

Performance (1-YR): 13.02% Expense Ratio: 0.50%

#2

Market Vectors Emerging Markets Local Currency Bond ETF (EMLC)

Performance (1-YR): 14.51% Expense Ratio: 0.49%

#3

iShares Emergine Markets Local Currency Bond Fund (LEMB)

Performance (1-YR): 11.19% Expense Ratio: 0.60%

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Emerging Markets

#1

BLDRS Emerging Markets 50 ADR Index Fund (ADRE)

Performance (1-YR): 10.58% Expense Ratio: 0.30%

#2

Schwab Emerging Markets Equity ETF (SCHE)

Performance (1-YR): 19.30% Expense Ratio: 0.15%

#3

iShares Emerging Markets High Yield Bond Fund (EMHY)

Performance (1-YR): 18.47% Expense Ratio: 0.65%

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European Region

#1

Vanguard FTSE Europe ETF (VGK)

Performance (1-YR): 35.24% Expense Ratio: 0.12%

#2

iShares MSCI UK Index Fund (EWU)

Performance (1-YR): 27.48% Expense Ratio: 0.53%

#3

iShares MSCI EMU Index Fund (EZU)

Performance (1-YR): 36.65% Expense Ratio: 0.53%

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Financial Services

#1

Vanguard Financials Index Fund (VFH)

Performance (1-YR): 44.09% Expense Ratio: 0.19%

#2

SPDR S&P Regional Banking ETF (KRE)

Performance (1-YR): 28.06% Expense Ratio: 0.35%

#3

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)

Performance (1-YR): 26.97% Expense Ratio: 0.35%

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Global

#1

iShares MSCI All Country World Minimum Volatility Index Fund (ACWV)

Performance (1-YR): 24.58% Expense Ratio: 0.34%

#2

Vanguard Total World Stock Index Fund (VT)

Performance (1-YR): 30.55% Expense Ratio: 0.19%

#3

iShares MSCI ACWI Index Fund (ACWI)

Performance (1-YR): 29.74% Expense Ratio: 0.35%

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Income

#1

WisdomTree Dividend ex-Financials Fund (DTN)

Performance (1-YR): 32.61% Expense Ratio: 0.38%

#2

Schwab US Dividend Equity ETF (SCHD)

Performance (1-YR): 31.13% Expense Ratio: 0.07%

#3

Vanguard High Dividend Yield Index Fund (VYM)

Performance (1-YR): 30.68% Expense Ratio: 0.20%

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Industrials

#1

Vanguard Industrials Index Fund (VIS)

Performance (1-YR): 35.05% Expense Ratio: 0.14%

#2

iShares Dow Jones US Industrial Sector Index Fund (IYJ)

Performance (1-YR): 34.58% Expense Ratio: 0.48%

#3

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

Performance (1-YR): 32.46% Expense Ratio: 0.48%

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International

#1

Schwab International Equity ETF (SCHF)

Performance (1-YR): 32.26% Expense Ratio: 0.09%

#2

SPDR S&P World ex-US ETF (GWL)

Performance (1-YR): 31.08% Expense Ratio: 0.34%

#3

Vanguard Total International Stock ETF (VXUS)

Performance (1-YR): 29.49% Expense Ratio: 0.16%

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International Income

#1

iShares S&P/Citigroup International Treasury Bond Fund Ex-US (IGOV)

Performance (1-YR): 1.63% Expense Ratio: 0.35%

#2

iShares S&P/Citigroup 1-3 Year International Treasury Bond Fund (ISHG)

Performance (1-YR): 3.31% Expense Ratio: 0.35%

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Japanese

#1

iShares MSCI Japan Index Fund (EWJ)

Performance (1-YR): 38.35% Expense Ratio: 0.53%

#2

WisdomTree Japan Hedged Equity Fund (DXJ)

Performance (1-YR): 68.58% Expense Ratio: 0.48%

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Mid-Cap

#1

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

Performance (1-YR): 35.59% Expense Ratio: 0.15%

#2

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

Performance (1-YR): 38.19% Expense Ratio: 0.07%

#3

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

Performance (1-YR): 37.39% Expense Ratio: 0.39%

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Municipal Debt

#1

iShares S&P California Municipal Bond Fund (CMF)

Performance (1-YR): 4.36% Expense Ratio: 0.25%

#2

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

Performance (1-YR): 0.26% Expense Ratio: 0.25%

#3

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

Performance (1-YR): 3.43% Expense Ratio: 0.25%

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Pacific Ex Japan

#1

iShares MSCI Singapore Index Fund (EWS)

Performance (1-YR): 28.02% Expense Ratio: 0.53%

#2

iShares MSCI Pacific ex-Japan Index Fund (EPP)

Performance (1-YR): 33.07% Expense Ratio: 0.50%

#3

iShares MSCI All Country Asia ex Japan Index Fund (AAXJ)

Performance (1-YR): 23.06% Expense Ratio: 0.69%

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Pacific Region

#1

Vanguard FTSE Pacific ETF (VPL)

Performance (1-YR): 35.35% Expense Ratio: 0.12%

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Real Estate

#1

Schwab U.S. REIT ETF (SCHH)

Performance (1-YR): 28.87% Expense Ratio: 0.07%

#2

SPDR Dow Jones REIT ETF (RWR)

Performance (1-YR): 28.47% Expense Ratio: 0.25%

#3

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)

Performance (1-YR): 54.91% Expense Ratio: 0.35%

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Specialty: Fixed Income

#1

iShares Floating Rate Note Fund (FLOT)

Performance (1-YR): 2.91% Expense Ratio: 0.20%

#2

PowerShares Senior Loan Portfolio (BKLN)

Performance (1-YR): 9.08% Expense Ratio: 0.75%

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Treasury Inflation Protected Securities

#1

SPDR Barclays TIPS ETF (IPE)

Performance (1-YR): 0.59% Expense Ratio: 0.18%

#2

Schwab U.S. TIPs ETF (SCHP)

Performance (1-YR): 0.74% Expense Ratio: 0.07%

#3

iShares Barclays TIPS Bond Fund (TIP)

Performance (1-YR): 0.62% Expense Ratio: 0.20%

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U.S. Government

#1

SPDR Barclays Intermediate Term Treasury ETF (ITE)

Performance (1-YR): 0.93% Expense Ratio: 0.13%

#2

Vanguard Short-Term Government Bond ETF (VGSH)

Performance (1-YR): 0.44% Expense Ratio: 0.15%

#3

Vanguard Short-Term Bond Index Fund (BSV)

Performance (1-YR): 1.52% Expense Ratio: 0.14%

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U.S. Mortgage

#1

Vanguard Mortgage-Backed Securities ETF (VMBS)

Performance (1-YR): 0.70% Expense Ratio: 0.15%

#2

iShares Barclays MBS Bond Fund (MBB)

Performance (1-YR): 0.60% Expense Ratio: 0.34%

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U.S. Treasury

#1

PIMCO 1-3 Year U.S. Treasury Index Exchange-Traded Fund (TUZ)

Performance (1-YR): 0.44% Expense Ratio: 0.09%

#2

Schwab Short-Term U.S. Treasury ETF (SCHO)

Performance (1-YR): 0.40% Expense Ratio: 0.08%

#3

Vanguard Extended Duration Treasury Index Fund (EDV)

Performance (1-YR): 5.98% Expense Ratio: 0.12%

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Ultra-Short Obligations

#1

SPDR Barclays 1-3 Month T-Bill ETF (BIL)

Performance (1-YR): 0.59% Expense Ratio: 0.13%

#2

iShares Barclays Short Treasury Bond Fund (SHV)

Performance (1-YR): 0.06% Expense Ratio: 0.15%

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Utility

#1

Vanguard Utilities Index Fund (VPU)

Performance (1-YR): 20.36% Expense Ratio: 0.14%

#2

iShares Dow Jones US Utilities Sector Index Fund (IDU)

Performance (1-YR): 19.70% Expense Ratio: 0.48%

#3

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

Performance (1-YR): 17.52% Expense Ratio: 0.48%

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Updated 05.17.2013

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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