Exchange-traded funds (ETFs) have become an increasingly popular investment vehicle in recent years — even more than mutual funds.
This growing popularity is due to the fact that ETFs are typically low-maintenance, have low fees and afford investors exposure to tens, hundreds or even thousands of positions under a single ETF.
But with about 3,400 ETFs in the U.S. alone, how can you identify the best ETFs for your portfolio? Well, for one, you want your ETF to have an expense ratio — the annual management fee — of 0.50% or less. In addition, if the Chicago-based investment research firm Morningstar gives it a positive rating, you can be sure it’s at least a safe bet.
Here are some of the best ETFs to buy in June 2024.
Avantis U.S. Large Cap Value ETF (AVLV)
Expense ratio: 0.15%
Avantis U.S. Large Cap Value ETF (NYSEARCA:AVLV) gives investors exposure to high-quality, large-cap U.S. companies that are undervalued. Investment company Avantis designed it to increase potential returns by overweighting (increasing the allocation) two types of securities: those trading at lower valuations and those with higher profitability ratios.
The fund manages assets worth $3.6 billion across 298 holdings in healthcare, tech, communication, financial services, consumer defense and more.
Also, AVLV’s top ten holdings include familiar stock favorites. Examples include Apple (NASDAQ:AAPL), Meta (NASDAQ:META), JPMorgan Chase (NYSE:JPM), Costco (NASDAQ:COST) and Exxon Mobil (NYSE:XOM).
At the end of May, the market price for AVLV was $63.73, with a year-to-date (YTD) total return of 10%. That solid gain indicates the ETF has been a strong performer.
Currently, AVLV has a Morningstar rating of Bronze. A bronze rating, one of Morningstar’s positive ratings, means its analysts expect it to outperform its peer group over a five-year market cycle. That makes AVLV one of the best ETFs to buy for June.
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD)
Expense ratio: 0.30%
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (NYSEARCA:BCD) is a commodity ETF issued by the abrdn (OTCMKTS:SLFPY) investment company. The fund tracks the performance of the Bloomberg Commodity Index (BCOM) Total Return Index.
Commodities are a great option for diversifying your holdings and hedging against inflation. However, most retail investors don’t have a direct way to get exposure to this asset class.
With $229 million in assets under management (AUM) across energy, agriculture, precious metals, industrial metals and livestock, the BCD fund, launched in 2017, lets investors do just this and is one of the best ETFs in the market.
BCD has a 7% YTD and a silver rating on Morningstar.
Vanguard U.S. Multifactor ETF (VFMF)
Expense ratio: 0.18%
The Vanguard U.S. Multifactor ETF (BATS: VFMF) supports a mix of large-, mid- and small-cap stocks in several markets and industries. Moreover, Vanguard regularly rebalances the fund between different areas of the market to mitigate individual stock risk and to see that it performs as well as it can over time.
The fund is geared toward long-term capital appreciation and prioritizes 80% of its allocation for U.S.-based company securities. Its current top holdings are Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), American International (NYSE:AIG), Marathon Petroleum (NYSE:MPC), McKesson (NYSE:MCK) and Wells Fargo (NYSE:WFC).
Vanguard currently oversees $268.6 AUM under the fund. As of June 3, it recorded a YTD return of 8% and is trading at a $123.86 market price.
It also helps that Morningstar analysts are bullish on VFMF and assign it a gold rating — the highest distinction in their Medalist ratings. If you’re looking to bet on a multifactor fund, VFMF is one of the best choices for ETFs this June.
On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the stocks mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
