2024 Investment Guide: Best ETFs to Consider

Are you searching for the best ETFs to invest in 2024? This article might have some of the best ETF suggestions for you. Keep reading this article to learn the best-performing ETFs you can invest in this year for high returns. Since the beginning of the 21st century, people investing in the stock market have increased rapidly. You might also be one of them who started investing in this period and now want to diversify your investment portfolio. Therefore, you are searching for the best ETFs to invest in 2024. So, here are the best ETFs you can invest in 2024 to get good returns. Additionally, if you are new to investing and want to know ‘what are ETFs?’ then you can read this article.  The Best ETFs To Invest In 2024 According to Statista, the growth in exchange-traded funds is astonishing, which accounts for 3000% since 2003. So, you see the popularity of exchange-traded funds in the market. If you too are looking to trade in ETFs, try these top exchange-traded funds.  Best ETFs In 2024 Expense Ratio Returns Tracking Error TATA NIFTY Private Bank ETF 0.13% 12.11% (3-year) 014% SBI NIFTY Private Bank ETF 0.15% 18.86% (since the beginning) 0.03% Axis NIFTY Bank ETF 0.18% 22.04% (since the beginning) 0.04% Kotak NIFTY Bank ETF 0.16% 12.56% (7-year) 0.04% HDFC NIFTY Bank ETF 0.16% 24.41% (since the beginning) 0.03% Nippon India ETF NIFTY BANK BeES 0.19% 14.90% (since the beginning) 0.03% HDFC Gold ETF 0.59% 9.44% (since the beginning) 0.20% SBI Gold ETF 0.65% 10.17% (since the beginning) 0.17%  TATA NIFTY Private Bank ETF TATA NIFTY Private Bank ETF closely follows the benchmark performance of the portfolio, thus having a 0.14% tracking error. Therefore, if you want to invest in ETF for the long term, this fund is a great option. Additionally, you must pay just a 0.13% expense ratio on your invested money. Exchange-traded funds are managed under asset management companies (AMC) that take fees for managing your funds. This fee is the expense ratio you, as investors, must pay. Furthermore, it would help if you looked for a lower expense ratio (0.05% to 0.75%) when investing in ETFs. Therefore, one of the best ETFs to invest in in 2024 with a low expense ratio is TATA NIFTY Private Bank ETF. SBI NIFTY Private Bank ETF One of the best ETFs to invest in 2024 is SBI NIFTY Private Bank ETF. You might be thinking about ‘how it is the best ETF’ and ‘why you should invest in it.’ This fund has 20 million dollars worth of assets as of 2024. Additionally, investors of this ETF have received returns of 18.82% on their investments since its launch in 2020. Furthermore, if you want to invest in ETF long term, this fund is a great option, with only a 0.3% tracking error. Therefore, the fund portfolio closely follows the performance benchmark. Additionally, you get exposure to securities managed under banking companies and capitalize on these securities' rising prices. Furthermore, you bear an expense ratio of 0.15%, considered a good ratio for your investment. Axis NIFTY Bank ETF Another ETF with a low expense ratio is Axis NIFTY Bank ETF, among the best ETFs to invest in 2024. This fund has given its investors 22.04% returns on their investment since its launch in 2023. If you invest in this fund, you must bear an expense ratio of 0.18%. Additionally, this fund holds assets worth 27 million dollars with a tracking error of 0.04%. Therefore, you can invest in this ETF because the fund closely tracks NIFTY Bank index stocks and has shown a benchmark performance. Furthermore, your investment is secure from volatile performance on exchange because of lower tracking errors. Kotak NIFTY Bank ETF You can invest in Kotak NIFTY Bank ETF, which has no lock-in fees or exit load. So, you can sell your exchange-traded funds at any time without bearing any fees for early exit. Additionally, this ETF has given 11.04% returns since its launch in 2014. So, if you calculate, this exchange-traded stock has given good returns in ten years. Furthermore, this is among the best ETFs to invest in 2024 because it has overcome inflation. You know how volatile our stock markets have been in the last decade. So, when a fund overcomes inflation, it's a keeper in investors' eyes. Additionally, you can consider this ETF for long-term investment because inflation has massively affected short-term investments. Furthermore, if you want to learn more about the best ETFs you must understand investment trends in the market. Read more investment books if you are new to investing.  HDFC NIFTY Bank ETF Banks play an essential role in tracking a country's economic growth. Therefore, opt for this ETF if you want to invest in your country's banking sector and capitalize on the banks' performance. We are talking about HDFC NIFTY Bank ETF, which has given 24.41% returns since the beginning. This is one of the best ETFs in 2024 because it has a 0.03% tracking error. Additionally, you can see how low the tracking error is; therefore, these exchange-traded funds follow the portfolio's benchmark. So, you can trust the ETF to give you good returns. Furthermore, investors got 15.14% returns in three years, higher than several ETFs in the market. Nippon India ETF NIFTY BANK BeES If you are searching for one of the best ETFs to invest in 2024, then Nippon India ETF NIFTY BeES can be a great option. You can invest primarily in large-cap and liquid banking stocks listed on the National Stock Exchange (NSE). Additionally, with these stocks, you get exposure to the banking sector in India. Your country's banks play a crucial role in your country's economic growth. Therefore, you can capitalize on your country's leading banks' performance through this ETF. HDFC Gold ETF Are you looking to invest in commodity ETFs? The HDFC Gold ETF is one of the best ETFs to invest in in 2024. In five years, this ETF has given 14.96%; in the last three years, returns amount to 14.08%. You are aware of the gold rates in the market at present. Additionally, the performance of gold has been outstanding in the last two decades, which makes this one of the best-performing ETFs in the market. Furthermore, the expense ratio of this ETF is high, so consult your fund manager to understand the expense ratio. You can make a better decision when you learn the high expense ratio of HDFC Gold ETF. If you want to learn more about gold ETF then read this article.  SBI Gold ETF Do you wish to invest in more commodity ETFs like HDFC Gold ETF? Then, you can opt for SBI Gold ETF. This exchange-traded fund is among the best ETFs to invest in 2024. You see, since the launch of this ETF in 2009, it has given its investors 10.17% returns. In the last five years, investors saw 16.67 % returns on their investment, and in a year, returns were 17.83%. So, if you don't have the means to purchase physical gold, you can still invest in SBI Gold ETF. Additionally, you can track your gold ETF investment while tracking real-time gold prices. Furthermore, you must know that any change in gold prices will change the NAV units. When you purchase gold securities, it consists of several units within a particular scheme, so when the price of gold ETF changes, each of these units' prices also changes. If you want to learn the pros and cons of gold ETF, then read this article.  Benefits Of Investing In ETFs Now that you know the best ETFs to invest in 2024, let's understand why ETFs are a great investment option. Trading Flexibility You get the flexibility to trade your ETFs during market hours. You can purchase or sell ETFs throughout the exchange hours, but the prices might vary throughout the day. Additionally, you know the price of the ETF you are purchasing or selling easily white trading. This makes ETF trading easier for moving money from different asset cases like stocks, commodities, or bonds. If you are looking for more flexible trading options, then stocks are a great investment just like ETFs. You can invest in different types of stocks like large companies' stocks and commodity stocks like gold or silver stock.  Portfolio Diversification As an investor, you aim to get high returns on your investment with no loss or lower loss. This can only be achievable if you diversify your investment portfolio. Your investments get more exposure in the market and thus survive volatility. If you are looking to diversify your investment, then crypto ETF like Bitcoin ETF or gold ETF are great options. Since you invest in different industries, sectors, countries, and investment styles in exchange, it helps you manage risks.  Additionally, if your one invested sector performs poorly, the other sector investment will remain secure and even give you profits. Furthermore, when you invest in different ETFs, you also get to increase your returns from other industries. So, diversify your investment in ETFs and mutual funds. If you want to know which is the better investment option for you between ETF vs mutual fund, then read this article.  Lower Costs Exchange-traded fund's operating costs are lower than open-ended mutual funds, where several costs are incurred for managing the funds. So, as an investor, you would want to get greater returns on your investment and spend only a little on fees for AMC. Additionally, you are not charged an annual marketing fee on your ETF investment, which results in higher returns. Tax Benefits Another advantage of investing in ETFs is tax benefits. You incur lower capital gains on your ETF profits. Again, you incur capital gains only when you sell your ETF, unlike mutual funds with capital gains taxes passed on to investors throughout their lifetime.  Wrapping Up Whether you wish to diversify your portfolio or invest in secure funds, whatever might be your reason for searching for the best ETFs to invest in 2024, these are presently among the best ETFs in the market.  It would help if you researched different ETF options in the market to invest your money. Therefore, do more research about the market to learn about stock exchange and investment. Additionally, if you are new to investment understanding different ETF options before inventing gives you an upper hand. So, understand the market before you invest in any investment options. Read Also: Is Fine Art A Good Investment? Alternative Investment Ideas