How do you choose the 10 best ETFs?


Quick Answer

Choosing the 10 best ETFs requires understanding trading activity, level of assets, market position and underlying index, according to Investopedia. Although the 10 best ETFs change regularly based on these factors, the best ETFs have a minimum level of assets. Additionally, the 10 best ETFs trade millions of shares daily.

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Full Answer

In order to choose the 10 best ETFs, understand that trading volume is useful for indicating the ETF's liquidity. The higher the trading volume, the better the ETF. Choosing the 10 best ETFs also requires recognizing the ETF's market position. This factor helps the investor identify a specific sector that has the highest probability of earning a large share of assets, according to Investopedia.

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