Best ETFs To Buy In 2021

Well, if you’re investing in a mutual fund, don’t worry because you’re not making a stupid decision. While it might look like ETFs are the replacement for mutual funds, mutual funds have their own merits too.

Mutual funds are actively managed, and some of them are managed so well that they actually beat the benchmark. If you can find good management in a mutual fund, then most probably it’s worth the extra cost.

Also, you tend to find the outperformance more in areas that are specialized and have room for growth. For instance, it’s difficult to find outperformance in large-cap stocks.

So when it comes to small and micro caps where the research of these fund managers actually makes a difference, mutual funds can be a really good option.

If you have a 401k, then it becomes necessary for you to have a mutual fund because very few 401k plans allow you to have an ETF. So that’s your only option left.

How to Find the Best ETFs

There are several thousand ETFs out there so it’s definitely hard to choose the one that will be a perfect fit for you. 

If you’re just beginning from scratch and trying to find out what’s out there, then the first thing to do is find an ETF screener. The screener won’t tell you the best ETFs, but it’ll give the universe of ETFs that exists for what it is that you’re looking for.

There are several free ETF screeners out there that you can use. The one that Kyle recommends is ETFDB.com, but you can really use any one of them. 

The screener will give you a basic idea such as how big the fund is, what the expenses are, what the dividend yield is, and things like that. After that, you can decide what it is that you want to see in your portfolio. Which area, industry, economy do you wanna target?

If, for example, you have a tech-focused portfolio that you’d like to diversify with some healthcare stocks, but you don’t know much about the healthcare industry. Targeting a healthcare ETF might be really good idea.

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Disclaimer: Investing in the financial markets involves a risk of loss. You should only invest the money you can afford to lose.

Invest Diva (KPHR Capital, LLC) and Kiana Danial are NOT a ...

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