5 Best BlackRock ETFs to Buy and Hold
BlackRock's iShares ETFs are among the biggest, most lucrative funds in the market.
Summary
Ron Tallou shares what to look for in any ETF beyond expense ratios, including price per share, portfolio mix and track record, in a U.S. News review of five standout BlackRock iShares funds.
BlackRock Inc. (ticker: BLK) has been offering top-tier iShares exchange-traded funds, or ETFs, since 1996, and recently closed the second quarter with $10.6 trillion in assets under management, heavily owing to the popularity of its ETFs. Many of its funds have outperformed benchmarks like the S&P 500, with low expense ratios and enticing long-term returns.
While many BlackRock ETFs have low expense ratios, that’s not the only thing investors should consider. Ron Tallou, founder and owner of Tallou Financial Services, offers insights on what investors should look for in any ETF:
"Aside from expenses, I would look at price per share, portfolio mix and how long it has been on the open market. ETFs can be made up of many different stocks and/or bonds, so make sure you view the companies or bonds that make it up and that you feel comfortable with the companies that you are seeing."
Finally, make sure the ETF has a reasonable track record, Tallou says. "Whether I am buying an ETF for myself or my clients, I like to purchase funds that have some history that will be a good tell-all of how it has performed during periods of a good or bad economy, so I have an idea of what to expect during different business cycles."
iShares Semiconductor ETF (SOXX)
SOXX gives investors exposure to U.S. companies that design, manufacture and distribute semiconductors. It has an annualized return of 24.5% over the past decade, driven by soaring demand for AI chips, and carries a 0.35% expense ratio.
iShares MSCI USA Quality GARP ETF (GARP)
GARP gives investors exposure to U.S. companies that offer growth at a reasonable price. With a 0.15% expense ratio, it has more than doubled the average annual return for its category over the past three years, returning 15.2%.
iShares S&P 500 Growth ETF (IVW)
IVW prioritizes large-cap growth stocks. It has a 0.18% expense ratio and has delivered an annualized 15% return over the past decade, outperforming the Vanguard S&P 500 ETF (VOO) and the Fidelity 500 Index Fund (FXAIX).
iShares Expanded Tech Sector ETF (IGM)
IGM has delivered an annualized 20% return over the past decade, with Magnificent Seven stocks leading the way. Meta, Apple, Nvidia, Microsoft and Alphabet are the fund's top five holdings, and the tech sector represents nearly 80% of assets.
iShares S&P 100 ETF (OEF)
OEF gives investors exposure to the top 100 S&P 500 companies by market cap. The fund's 0.41% expense ratio is partially offset by a trailing 12-month yield of 0.3%. Don't forget that past performance is never a guarantee of future results.