5 Best ETF Stocks To Invest In For June 2021

Finding the best ETF stocks or exchange-traded fund stocks can be a daunting process. ETFs are a type of investment that tracks a particular set of equity. They are also traded on the stock exchange the same way normal stocks are.

With so many ETF stocks available in the market, the difficulty lies in knowing those with high growth potential. This guide explores the best ETF stocks you need to pay attention to in June.

1. Betashares Nasdaq-100 ETF (ASX: NDQ)

Starting our list of the best ETF stocks is Australian-based ETF fund manager Betashares Nasdaq-100 Index.

This investment vehicle offers exposure to 100 of the world’s top global businesses based on their market capitalization. Technology companies take up the larger share of the Index composition. You’ll find the likes of Facebook, Microsoft, Google, Apple, Tesla, among others on the list.

Betashares Nasdaq-100 Index is designed to track the performance of Nasdaq-100. It offers Australian investors the opportunity to invest in these global companies.

Meanwhile, NDQ does not only cater to tech companies. It only monitors best-performing companies in sectors like retailing, consumer goods and services, industrial, healthcare, and more.

Technology has boomed in the last decade, and this has been reflected in the Index’s performance. In the last twelve months, Nasdaq-100 Index has grown 35.4%, surpassing the Australian Shares Index (ASI) at 23.6%. However, the ETF stock went slightly below the Global Shares Index (GSI) with 37.5%.

But in the last decade, it has trumped the Global Shares Index, posting returns of 23.5% per annum, making it one of the best ETF stocks you can invest in. Despite its management fee of 0.48% per annum, the ETF fund size is above $1.7 billion.

2. Betashares Asia Technology Tigers (ASX: ASIA)

Next on our list of the best ETF stocks to buy in June is Betashares Asia Technology Tigers with ticker ASIA. Just as its name denotes, this ETF stock tracks the performance of tech giants in the Asian region, excluding island nation Japan.

It tracks the growth of the 50 largest technology and online retail stocks, including tech giants like Alibaba, Tencent, Baidu, and JD.com. ASIA aims to enable Australian investors to invest in these high-growth Asian tech companies and charges a 0.67% management fee per annum.

ASIA monitors the Solactive Asia Ex-Japan Technology & Internet Tigers Index and boasts of the listing of Taiwan Semiconductor Manufacturer (with 10.3%) on its platform. In the aspect of performance, the ETF stock has grown 47.46% in the past year, performing only marginally lesser than the underlying Index with 48.47%. Since its inception, the ETF has risen 27.85%, slightly lower than the underlying Index it tracks at 28.73%.

The continued boom of technology in the Asian continent could make this one of the best ETF stocks for portfolio diversification.

3. Invesco S&P Smallcap 600 Pure Growth ETF (NYSE: RZG)

Our third best ETF stock to consider is the Invesco S&P Smallcap 600 Pure Growth ETF. Monitoring the S&P 600 Pure Growth Index, RZG invests at least 90% of its total assets in securities that the Index comprises. RZG looks at such growth metrics in sales, earnings change to price, and momentum. The Fund and Index are rebalanced annually.

Boasting over $2 billion in assets under management (AUM), RZG has traded as high as $175.53. It has 127 holdings and a return on equity (ROE) of 14.17%. It charges 0.35% as the management fee and an annual yield of 0.31%.

RZG has grown in the last year, increasing 68.67%, and is already up 16.57% so far this year. Its price or earnings ratio is at a healthy 20.20, making it one of the best ETF stocks investors should add to their portfolio.

4. iShares Expanded Tech Sector ETF (NYSE: IGM)

Next on our best ETF stocks list is iShares Expanded Tech Sector ETF (IGM). The ETF stock seeks to track the investments of North American equities in the tech sector. IGM also tracks companies in the communication space and consumer discretionary sectors.

IGM invests at least 90% of its assets in the securities of the underlying Index. It has on its watchlist the likes of Microsoft, Amazon, Apple, and many others. With a net asset of over $3 billion, IGM grew 47.72% last year with a year-to-date return of 12.37%. IGM’s expense ratio stands at 0.46%, making it one of the best ETF stocks for investors.

IGM is majorly exposed to the technology sector in regards to sector composition, taking a large chunk of the ETF stock with 60.38%. The communication sector comes second, with the space having 20.31% allocated to it. Consumer cyclical and financial services take 10.17% and 7.58%, respectively. However, it does not offer exposure to companies in energy or healthcare.

5. Technology Select Sector SPDR Fund (NYSE: XLK)

The Technology Select Sector SPDR Fund with ticker XLK aims to provide investment results that correspond to the price and yield of the Technology Select Sector Index.

It provides direct exposure to companies in the technology hardware, storage, and software. The ETF also covers companies in the communications equipment, semiconductors, IT services, and electronic equipment business.

Founded in 1998, XLK has a gross expense ratio of only 0.12%, making it one of the most affordable ETF stocks in the industry. The stock’s estimated EPS growth for the last five years is 15.69%, and it has 74 holdings currently listed. Compared to the underlying index it is tracking, XLK has performed well. The ETF has posted a fund dividend yield of 0.77% against 0.90%. It has a market cap of over $980 million.