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): 14.59% Expense Ratio: 0.16%

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China Region

#1

iShares MSCI China Index Fund (MCHI)

Performance (1-YR): 16.73% Expense Ratio: 0.61%

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Corporate Debt

#1

Guggenheim BulletShares 2012 Corporate Bond ETF (BSCC)

Performance (1-YR): 0.28% Expense Ratio: 0.24%

#2

Guggenheim BulletShares 2014 Corporate Bond ETF (BSCE)

Performance (1-YR): 1.90% Expense Ratio: 0.24%

#3

SPDR Barclays Capital Intermediate Term Corporate Bond ETF (ITR)

Performance (1-YR): 6.16% Expense Ratio: 0.15%

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Emerging Markets Debt

#1

iShares JPMorgan USD Emerging Markets Bond Fund (EMB)

Performance (1-YR): 8.20% Expense Ratio: 0.60%

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Emerging Markets

#1

BLDRS Emerging Markets 50 ADR Index Fund (ADRE)

Performance (1-YR): 13.67% Expense Ratio: 0.30%

#2

Schwab Emerging Markets Equity ETF (SCHE)

Performance (1-YR): 14.85% Expense Ratio: 0.25%

#3

SPDR S&P Emerging Markets ETF (GMM)

Performance (1-YR): 14.54% Expense Ratio: 0.59%

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European Region

#1

Vanguard European Index Fund (VGK)

Performance (1-YR): 17.45% Expense Ratio: 0.14%

#2

iShares MSCI EMU Index Fund (EZU)

Performance (1-YR): 26.15% Expense Ratio: 0.54%

#3

iShares MSCI France Index Fund (EWQ)

Performance (1-YR): 26.28% Expense Ratio: 0.53%

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Financial Services

#1

Vanguard Financials Index Fund (VFH)

Performance (1-YR): 4.75% Expense Ratio: 0.23%

#2

iShares S&P Global Financials Sector Index Fund (IXG)

Performance (1-YR): 15.97% Expense Ratio: 0.48%

#3

iShares Dow Jones US Financial Services Index Fund (IYG)

Performance (1-YR): 7.07% Expense Ratio: 0.48%

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Flexible Portfolio

#1

IQ Hedge Multi-Strategy Tracker ETF (QAI)

Performance (1-YR): 0.74% Expense Ratio: 0.75%

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Global

#1

iShares MSCI Kokusai Index Fund (TOK)

Performance (1-YR): 5.89% Expense Ratio: 0.25%

#2

iShares MSCI ACWI Index Fund (ACWI)

Performance (1-YR): 7.13% Expense Ratio: 0.35%

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Income

#1

WisdomTree MidCap Dividend Fund (DON)

Performance (1-YR): 0.96% Expense Ratio: 0.38%

#2

WisdomTree Total Dividend Fund (DTD)

Performance (1-YR): 5.51% Expense Ratio: 0.28%

#3

WisdomTree Dividend ex-Financials Fund (DTN)

Performance (1-YR): 3.81% Expense Ratio: 0.38%

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Industrials

#1

Vanguard Industrials Index Fund (VIS)

Performance (1-YR): 4.09% Expense Ratio: 0.19%

#2

iShares Dow Jones US Industrial Sector Index Fund (IYJ)

Performance (1-YR): 3.57% Expense Ratio: 0.48%

#3

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

Performance (1-YR): 11.09% Expense Ratio: 0.48%

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International

#1

Schwab International Equity ETF (SCHF)

Performance (1-YR): 14.61% Expense Ratio: 0.13%

#2

Vanguard Total International Stock ETF (VXUS)

Performance (1-YR): 15.10% Expense Ratio: 0.20%

#3

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

Performance (1-YR): 13.32% Expense Ratio: 0.34%

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International Income

#1

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

Performance (1-YR): 2.41% Expense Ratio: 0.35%

#2

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

Performance (1-YR): 5.81% Expense Ratio: 0.35%

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Japanese

#1

iShares MSCI Japan Index Fund (EWJ)

Performance (1-YR): 8.16% Expense Ratio: 0.54%

#2

WisdomTree Japan Hedged Equity Fund (DXJ)

Performance (1-YR): 6.20% Expense Ratio: 0.48%

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Mid-Cap

#1

Vanguard Mid-Cap Index Fund (VO)

Performance (1-YR): 2.85% Expense Ratio: 0.15%

#2

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

Performance (1-YR): 2.96% Expense Ratio: 0.13%

#3

iShares Russell Midcap Index Fund (IWR)

Performance (1-YR): 2.23% Expense Ratio: 0.21%

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Municipal Debt

#1

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

Performance (1-YR): 2.42% Expense Ratio: 0.25%

#2

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

Performance (1-YR): 11.31% Expense Ratio: 0.25%

#3

iShares S&P California Municipal Bond Fund (CMF)

Performance (1-YR): 13.19% Expense Ratio: 0.25%

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Pacific Ex Japan

#1

iShares MSCI Pacific ex-Japan Index Fund (EPP)

Performance (1-YR): 10.27% Expense Ratio: 0.50%

#2

iShares MSCI Singapore Index Fund (EWS)

Performance (1-YR): 8.17% Expense Ratio: 0.53%

#3

iShares MSCI Hong Kong Index Fund (EWH)

Performance (1-YR): 11.15% Expense Ratio: 0.53%

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Pacific Region

#1

Vanguard Pacific Stock Index Fund (VPL)

Performance (1-YR): 8.93% Expense Ratio: 0.14%

#2

iShares MSCI South Korea Index Fund (EWY)

Performance (1-YR): 12.30% Expense Ratio: 0.61%

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Real Estate

#1

Schwab U.S. REIT ETF (SCHH)

Performance (1-YR): 10.76% Expense Ratio: 0.13%

#2

Vanguard REIT ETF (VNQ)

Performance (1-YR): 10.36% Expense Ratio: 0.15%

#3

First Trust S&P REIT Index Fund (FRI)

Performance (1-YR): 10.25% Expense Ratio: 0.50%

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Specialty: Fixed Income

#1

PowerShares Senior Loan Portfolio (BKLN)

Performance (1-YR): 2.16% Expense Ratio: 0.75%

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Treasury Inflation Protected Securities

#1

SPDR Barclays Capital TIPS ETF (IPE)

Performance (1-YR): 12.70% Expense Ratio: 0.18%

#2

Schwab U.S. TIPs ETF (SCHP)

Performance (1-YR): 12.12% Expense Ratio: 0.14%

#3

PIMCO Broad U.S. TIPS Index Fund (TIPZ)

Performance (1-YR): 12.46% Expense Ratio: 0.20%

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U.S. Government

#1

SPDR Barclays Capital Intermediate Term Treasury ETF (ITE)

Performance (1-YR): 5.47% Expense Ratio: 0.13%

#2

Vanguard Short-Term Government Bond ETF (VGSH)

Performance (1-YR): 0.92% Expense Ratio: 0.15%

#3

Vanguard Intermediate-Term Government Bond ETF (VGIT)

Performance (1-YR): 8.54% Expense Ratio: 0.15%

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U.S. Mortgage

#1

Vanguard Mortgage-Backed Securities ETF (VMBS)

Performance (1-YR): 4.75% Expense Ratio: 0.15%

#2

iShares Barclays MBS Bond Fund (MBB)

Performance (1-YR): 4.67% Expense Ratio: 0.34%

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U.S. Treasury

#1

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

Performance (1-YR): 0.97% Expense Ratio: 0.09%

#2

Vanguard Extended Duration Treasury Index Fund (EDV)

Performance (1-YR): 49.22% Expense Ratio: 0.14%

#3

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

Performance (1-YR): 0.90% Expense Ratio: 0.12%

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Ultra-Short Obligations

#1

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

Performance (1-YR): 0.06% Expense Ratio: 0.13%

#2

iShares Barclays Short Treasury Bond Fund (SHV)

Performance (1-YR): 0.00% Expense Ratio: 0.15%

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Utility

#1

Vanguard Utilities Index Fund (VPU)

Performance (1-YR): 8.54% Expense Ratio: 0.19%

#2

iShares Dow Jones US Utilities Sector Index Fund (IDU)

Performance (1-YR): 8.27% Expense Ratio: 0.48%

#3

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

Performance (1-YR): 7.29% Expense Ratio: 0.48%

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Updated 05.14.2012

Top Performing ETFs as of 04.04.2012

PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund (ZROZ)

Fixed Income | U.S. Treasury Funds

Total Return: 46.69%

Vanguard Extended Duration Treasury Index Fund (EDV)

Fixed Income | U.S. Treasury Funds

Total Return: 43.48%

iPath US Treasury 10-year Bull ETN (DTYL)

Fixed Income | U.S. Treasury Funds

Total Return: 39.76%

iShares COMEX Gold Trust (IAU)

Commodity | Gold Oriented Funds

Total Return: 19.77%

SPDR Gold Shares (GLD)

Commodity | Gold Oriented Funds

Total Return: 19.76%

iShares Silver Trust (SLV)

Commodity | Precious Metals

Total Return: 18.83%

* annualized