Top US ETFs to consider for child’s education
Education costs are on the rise all over the world, and it has become vital for parents to invest and save money if they want to provide for their child’s higher education.
If the child is still young and there are several years before higher education, then it is prudent to develop a long-term financial plan with some of the best US ETFs in the portfolio, as they will yield higher returns.
Remember, the earlier you start, the better your odds of accumulating the desired amount.
US ETFs or exchange-traded funds are an effective investment option for Indian investors as they have proved big winners.
Strong economic growth and federal stimulus have helped the US ETFs to outperform and add to the bullish momentum.
Best US ETFs for child’s higher education plan
1. iShares Global Tech ETF
Launched on 11th December 2001, the iShares Global Tech ETF tracks the results of the index that includes global equities in the computer hardware, software, and technology sectors.
It has 132 holdings, among which the top names are Apple Inc, Microsoft Corporation, Nvidia Corp, Visa Inc Class A, and Taiwan Semiconductor.
With net assets of $3,170,684,936 and an expense ratio of 0.43%, it is considered one of the best US ETFs for a child’s higher education.
2. Invesco S&P 500 Enhanced Value ETF
Launched on 9th October 2015, Invesco S&P 500 Enhanced Value ETF tracks the investment results of the S&P 500 Enhanced Value Index.
The large cap equity asset boasts an AUM of $144.8M, a 1-year high of $47.51, and an expense ratio of 0.13%. The fund has 102 holdings in the portfolio that includes companies like Berkshire Hathaway Inc, JPMorgan Chase & Co, and CVS Health Corp.
3. iShares Core S&P U.S. Value ETF
Launched on 24th July 2000, the iShares Core S&P U.S. Value ETF tracks the investment results of the index that includes mid and large-cap U.S. equities.
It has 743 holdings, among which the top names are Berkshire Hathaway Inc, Johnson & Johnson, Exxon Mobil Corp, and Chevron Corp. With an expense ratio of 0.04%, it is considered one of the best US ETFs in the world.
4. Vanguard Consumer Staples ETF
Launched on 26th January 2004, the Vanguard Consumer Staples ETF (VDC) tracks the investment results of the index that includes large-cap U.S. equities.
The ETF is focused on the U.S. consumer staples sector and includes top holdings like Procter & Gamble, Coca-Cola Company, and PepsiCo Inc.
5. SPDR S&P 400 Mid Cap Value ETF
Launched on 8th November 2005, the SPDR S&P 400 Mid Cap Value ETF (MDYV) tracks the investment results of the Small-Cap core index.
Top holdings include EQT Corp, First Horizon Corp, and Reliance Steel & Aluminum Co. The fund shows a net expense ratio of 0.15% and a yield of 1.93%.
Additional read: ELSS funds for child’s higher education
Best US ETFs as of September 2022
It is important to make the right choices while investing in your child’s higher education. Best US ETFs are well-diversified, low-fee, and tax-effective funds that are considered the smartest choice by high-profile investors.
The financial experts associated with the Edufund App help parents to invest in top-performing US ETFs from India so that they can have the necessary funds to fulfill their child’s dream education abroad.
The hassle-free, transparent and simple app gives the option of choosing from 1400+ US ETFs and earning returns in dollars.
Creating wealth is no longer an impossible dream but a possibility through Edufund, and that too in a simple manner just from your phone.
Consult an expert advisor to get the right plan