10 Best ETFs to Invest For a Better Result

Are you looking for the Best ETFs to invest in? Exchange-traded funds (ETFs) are one of the best tools for building wealth on a budget. They let you buy a basket of stocks or bonds for one low price, giving you instant diversification and helping you avoid the risks of putting all your eggs in one stock.

This makes ETFs popular with founders, marketers, and small business owners who want their investments to work as efficiently as they do, without high fees eating away at growth.

For anyone running a business, investing can seem complicated or costly. ETFs solve both problems by offering straightforward access to broad markets and sectors, so you can grow your savings even if you don’t have time to analyze every stock.

This guide will break down the best ETFs to consider, with tips for matching each fund to your risk comfort and long-term goals.

Whether you’re after growth, steady income, or just want a solid place to park extra cash, there’s an ETF strategy for you.

You’ll see real examples, clear data, and practical steps so you can invest with confidence, no financial jargon needed.

Why ETFs Fit the Entrepreneurial Mindset

Entrepreneurs understand the need for smart risk management, low overhead, and growth that doesn’t get tangled in complexity.

ETFs check all these boxes, making them a natural extension of an entrepreneurial approach. Instead of betting big on untested ideas, entrepreneurs use tools that offer stability, adaptability, and solid returns over time. Here’s why ETFs fit so well with this mindset.

Diversification Made Simple

Running a business demands time and energy, not endless hours picking individual stocks. That’s where diversification comes in.

With a single ETF, founders and small business owners can own shares in dozens, sometimes hundreds, of companies. This spreads your risk, so if one stock stumbles, the impact on your portfolio stays small.

Think of an ETF as your business’s own backup plan. You’re not putting all your resources into one product or campaign. Similarly, you don’t have to pin your hopes on a single stock’s success. ETFs offer:

• Instant access to multiple sectors or industries.

• Exposure to both established giants and rising stars.

• Built-in protection against sudden market swings.

The end result? You get a safer, smoother ride, just like keeping your products and clients diversified for more consistent income.

Follow this link if you are interested on How to build a diversified ETF portfolio: A comprehensive guide.

Low Costs Boost Bottom Line

Every business owner knows that expenses add up, and so do fund fees. ETFs are popular among cost-conscious entrepreneurs because they keep overhead low. The average ETF charges an expense ratio around 0.15%, while the typical mutual fund sits closer to 1%.

Let’s put this in perspective:

Fund Type	Average Expense Ratio	Annual Fee on $10,000
ETF	0.15%	$15
Mutual Fund	1.00%	$100

Over years, the savings become real dollars you can reinvest back into your business or personal goals. For founders working with tight budgets, this means more money stays in your account, not the fund manager’s pocket.

Tax-Efficient Growth

Handling taxes eats into any owner’s time and profits, but ETFs bring relief here too. Their structure allows for what’s called “in-kind” transfers.

This means ETFs can swap securities inside the fund without triggering big capital gains taxes for holders, especially useful in taxable accounts.

So, as your investments grow, you won’t face the same year-to-year tax bills you might with other funds. This advantage lets your money compound faster, keeping more gains working for your future projects or business pivots.

By simplifying diversification, cutting costs, and easing tax headaches, ETFs perfectly match the tactical, growth-minded style of small business leaders everywhere.

Top Equity ETFs to Consider

Looking for the top equity ETFs? Whether you want broad market exposure or targeted sector growth, the right ETF can help you reach your goals with just a few clicks.

Let’s break down high-impact picks that balance cost, liquidity, and performance, so you can put your investment to work fast, no complex research needed.

U.S. Large‑Cap Leaders

When it comes to U.S. equity ETFs, SPY and VOO stand out year after year. These funds mirror the S&P 500, giving you shares in 500 of America’s biggest, most successful companies.

Here’s why they’re favorites:

• Strong YTD returns: Both SPY and VOO have delivered double-digit gains so far this year, showing steady momentum.

• Low cost: SPY has an expense ratio near 0.09%, while VOO comes in even lower around 0.03%. That means more money in your pocket, not lost to fees.

• High liquidity: These ETFs trade millions of shares a day, so buying or selling is as easy as a quick online search.

Both options give instant access to blue-chip leaders like Apple, Microsoft, and Amazon. Want even more upside (with higher risk)?

Check the high‑risk investment options page for leveraged ETF picks if you’re ready to dial up volatility for potentially bigger rewards.

For those who want to explore a broader knowledge on why ETFs are favorites, read this article, Why ETFs are an investor favourite?

Tech‑Heavy Growth ETFs

Tech remains the engine behind much of the stock market’s growth. QQQ and VGT are both go‑to funds if you want to bet on innovation-driven sectors.

What do these ETFs bring to your portfolio?

• Premier growth exposure: QQQ tracks the NASDAQ-100, heavy on companies driving digital transformation think Apple, Microsoft, and NVIDIA.

• Sector specialization: VGT offers a pure play on information technology, including giants like Visa and Adobe, putting you at the center of software, hardware, and digital payment trends.

• Recent performance: In 2024, both QQQ and VGT outpaced the broader market, thanks to strong earnings and accelerating tech adoption.

For entrepreneurs and marketers wanting more than just broad market growth, adding a tech-focused ETF can be like putting rocket fuel in your investment engine.

International Exposure

Many investors stop at U.S. stocks, but adding global exposure can tamp down risk and capture new growth.

Consider these diversification picks:

• VEA (Developed Markets): Covers Europe, Australia, and the Far East, giving broad access to stable economies outside the U.S.

• EEM (Emerging Markets): Focuses on fast-growing countries like China, India, and Brazil, catching rising businesses in developing regions.

Adding a slice of international ETFs lets your portfolio ride trends happening worldwide. This mix can help cushion against U.S.-specific downturns and capture gains where growth is accelerating fastest.

By pairing these top equity ETFs, you build a foundation that’s wide, nimble, and engineered for opportunity, whether your goals are steady growth or targeted risk.

Bond and Dividend ETFs for Stability

Finding steady ground matters when you’re juggling a business and investments. Bond and dividend-focused ETFs can deliver both safety and a stream of income.

They’re a fit for anyone wanting less stress and more predictability in their portfolio.

Core Bond ETFs

Bond ETFs help soften the bumps when the market gets choppy. If you crave stability without parking your cash in a savings account, these funds stand out:

• Vanguard Short Term Bond ETF (BSV): This fund is known for its low costs and reduced risk. It invests mostly in short-term, high-quality U.S. government and investment-grade bonds. With less price swing than long-term bonds, BSV suits those who value capital preservation.

• iShares Core U.S. Aggregate Bond ETF (AGG): As a go-to for broad bond exposure, AGG covers government, corporate, and mortgage-backed bonds.

It tracks the entire U.S. investment-grade bond market. This mix helps smooth your returns so your investments don’t ride the same ups and downs as stocks.

When your business depends on not losing sleep over wild market swings, adding one or both of these to your portfolio can be a smart defensive play.

If you want more detail on structuring a bond-heavy portfolio that supports long-term stability, see this straightforward retirement investment mix basics guide.

High‑Dividend Yield ETFs

Dividend ETFs keep your investment plan working for you by generating steady payouts. Here are two standouts:

• Vanguard High Dividend Yield ETF (VYM): VYM packs reliable, high-dividend stocks from top U.S. companies. It’s a popular pick for steady income, so your cash flow doesn’t dry up when stock prices go sideways.

• Schwab U.S. Dividend Equity ETF (SCHD): SCHD focuses on quality companies that don’t just pay dividends but keep growing them. This helps you capture both income and long-term growth potential.

Why does this matter for a founder or small business owner? Dividend income from funds like VYM or SCHD can cover expenses such as marketing campaigns or monthly software bills.

It’s a practical way to let your investments offset everyday operating costs without dipping into business cash reserves.

By adding these ETFs into your plan, you set up your money to work for you in good times and bad, freeing you up to focus on your business, not market noise.

Specialized ETFs and Niche Opportunities

Not every business owner is searching for broad market exposure. Some look for focused options that align with their industry, values, or even unique growth opportunities.

Specialized ETFs make it possible to invest in a single sector, commodity, or alternative asset with the same low cost and ease as standard funds. Here’s how these niche ETFs can fit into your strategy.

Sector ETFs for Targeted Growth

If you want to go deep into a specific sector that matches your business or market interests, sector ETFs can give you targeted exposure with one purchase.

• Financial Select Sector SPDR Fund (XLF): XLF lets you own a basket of large U.S. financial companies. For startups and founders in fintech or payment tech, this ETF offers direct access to trends driving digital finance, such as mobile banking, blockchain, and payment infrastructure. Think of it as buying a piece of the future of money without picking one winner.

• Energy Select Sector SPDR Fund (XLE): For those backing the green revolution or seeking exposure to energy innovation, XLE covers both traditional giants and rising green-energy players. This ETF includes companies venturing into renewables, which can be attractive to founders and marketers betting on sustainable tech.

Both ETFs are well-traded, have low fees, and let you focus your investment on industries poised for disruption or long-term growth.

If your business is connected to finance or sustainability, these can help your portfolio reflect your expertise and interests.

Commodity and Precious‑Metal ETFs

Shifting some capital to commodities or digital assets can help hedge against inflation or economic swings. Precious-metal ETFs, like gold or silver, offer a simple way to access these classic stores of value, and now, digital assets are just as accessible.

• SPDR Gold Shares (GLD): This is the most widely held gold ETF. GLD lets you gain gold exposure without buying physical metal or worrying about secure storage. It’s popular for hedging risk, especially when markets get shaky.

• Bitcoin ETFs (e.g., EZBC): Now that Bitcoin ETFs are available on major exchanges, investors can gain crypto exposure using regular brokerage accounts. EZBC and similar ETFs simplify Bitcoin investing—no wallets or private keys required.

If you’re curious about including precious metals in retirement accounts, check out this resource on Vanguard gold and silver IRA availability for a clear breakdown of options and rules.

Real‑Estate and REIT ETFs

You don’t need to be a landlord to make money from property. REIT (Real Estate Investment Trust) ETFs let you own shares in companies that manage commercial buildings, apartments, or warehouses, and pay out rental-style income.

• Schwab U.S. REIT ETF (SCHH): SCHH focuses on U.S. real estate trusts with strong income streams. With this ETF, you participate in real estate growth and receive dividends, all without having to handle tenants or property repairs.

• REIT ETFs can give your portfolio cash flow similar to rental income, while staying liquid and hands-off, perfect for founders or owners who want their money working without distraction.

These specialized ETFs unlock targeted opportunities that suit varied business backgrounds, risk appetites, and market convictions.

Whether you want to focus on one sector, hedge with commodities, or pocket real estate income, niche ETFs let you tailor your investments to your own story and strategy.

How to Start Investing in ETFs Today

Getting started with ETF investing is straightforward, even if you’re new to the process. All it takes is the right brokerage account and a smart way to filter options. Here’s a hands-on guide to moving from interest to action.

Choosing the Right Brokerage

Your first step is opening a brokerage account that works for you, not against you. Most of today’s top brokerages cut out trading commissions, so you can buy and sell ETFs often without worrying about extra charges eating up your returns.

When picking a platform, look for these essentials:

• Zero-commission trades: This feature lets you invest without paying each time you trade, which is key for growing your portfolio on a budget.

• Research tools: Access to screeners, charts, and analyst reports lets you compare ETF options with confidence.

• Educational resources: Step-by-step guides, webinars, and tutorials help you strengthen your investing know-how, not just your portfolio.

Some brokerages even offer demo accounts, so you can practice before putting money on the line. For Canadian readers, digital wealth platforms like Nest Wealth use ETFs to build portfolios with lower management fees.

You can see a Nest Wealth RRSP account review (Canada) to compare features if you’re exploring automated investing.

Screening ETFs Quickly

Once your account is open, the real challenge is choosing which ETFs deserve a spot in your portfolio. Instead of picking at random or chasing hype, use online ETF screeners to sort funds by criteria that matter most.

Here’s what a smart screening process looks like:

• Expense ratio: Start with cost. Lower expense ratios mean more of your returns stay in your pocket each year. Anything under 0.20% is generally considered low.

• Assets under management (AUM): Larger funds tend to be more stable and liquid. Look for ETFs with hundreds of millions or even billions in AUM.

• Performance history: Check how the ETF has performed over several years. While past performance doesn’t guarantee future results, it helps you spot well-run funds.

These tools let you filter the ETF universe in minutes. Many brokerages and financial news sites offer free screeners, so you can compare funds side by side before investing.

By using the right account and filtering ETFs effectively, you set yourself up for smarter investing from day one. You don’t need to be an expert, just curious and willing to use the tools at your fingertips.

Conclusion

Choosing the best ETFs comes down to three steps: diversify with low-cost funds, match your picks to your risk comfort and business needs, and create a simple action plan. Stick with funds that have proven performance, low fees, and a clear fit for your goals.

Now is a great time to pick one ETF that fits your objectives and track its performance for the next few months. As you start, you’ll build confidence and see what works for your money style.

Investing doesn’t need to be complicated. Begin small and stay curious. Thanks for reading, share your ETF experiences with the Ideas Plus Business community and keep learning as markets shift.