Everyday investors have been able to save billions of dollars in various fees over the past several decades by investing in index funds. Furthermore, these funds have been far easier for people to get involved in, as they don’t require extensive knowledge of how to pick stocks or the effects of the geopolitical situation on the markets as a whole. Furthermore, the past couple of years have also shown that there is a great deal of money in index funds, and that is what it is all about.
Risks with Index Funds:
At the same time, however, index funds are part of a very serious developing issue, and things could go horribly wrong. With more and more people opting for index funds, and a great deal of information being available on the top 10 index funds, experts now believe that it is driving the market upwards, creating an economic bubble. What this means is that the stocks purchased by the various funds are causing a distortion in valuations. All bubbles have to pop at some point, and this could lead to index funds that have been believed to be safe, to suddenly lose all their value.
What this tells you is that the top 10 index funds are all very different ones. It also tells you that, if at all possible, you should invest in all of them. There will be some that are orientated solely on buy and hold, meaning that you will stick with them for the next couple of decades, so they will survive any upcoming bubble. Others are the exact opposite, meaning they are good for a tactical trade that you hold for a couple of weeks.
Below is a list of what are believed to be the very best index funds that anybody can take part in. It doesn’t matter whether you want to prepare yourself for your retirement 40 years down the line, or whether you’re simply playing with the market, clicking away on a daily basis. Take the time to investigate the following ten index funds and to find out what their pros and cons are, before deciding whether they are right for you. You also need to find out how best to invest in them (long term or short term). Above all else, you must remember that investing, even in index funds, can be like gambling because there are always risks. Be aware, in other words, of the fact that you could lose it all.
Here Are Our Picks For The Top 10 Index Funds:
1. iShares Core S&P 500 ETF (IVV)
2. iShares Core S&P Mid-Cap ETF (IJH)
3. SPDR S&P Bank ETF (KBE)
4. PowerShares Aerospace & Defense Portfolio (PPA)
5. Global X SuperDividend Emerging Markets ETF (SDEM)
6. PowerShares S&P 500 High Dividend Low Volatility Portfolio (SPHD)
7. SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
8. VanEck Vectors Preferred Securities ex Financials ETF (PFXF)
9. Direxion Daily S&P Biotech Bull 3x Shares (LABU)
10. Direxion Daily Gold Miners Index Bull and Bear 3x Shares (NUGT/DUST)
