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Advertiser Disclosure Updated: May 2, 2024, 4:18pm

7 Best iShares ETFs Of May 2024

Barbara FriedbergInvesting Expert Writer

Friedberg is a former investment portfolio manager, university finance instructor and author of three books including "Personal Finance; An Encyclopedia of Modern Money Management." Her work has been featured in national investment publications such as Forbes Advisor, Investopedia, U.S.News and World Report, Yahoo Finance, GoBankingRates and InvestorPlace. She is a regular panelist on the Money Tree Investing Podcast and owns BarbaraFriedbergPersonalFinance.com.

Barbara Friedberg

Barbara FriedbergInvesting Expert Writer

Investing Expert Writer

Michael AdamsLead Editor, Investing

Michael Adams is lead editor, investing at Forbes Advisor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publications, including Kiplinger, U.S. News and World Report, The Motley Fool and more. Michael holds a master’s degree in philosophy from The New School for Social Research and an additional master's degree in Asian classics from St. John’s College.

Reviewed

Michael Adams

Michael AdamsLead Editor, Investing

Lead Editor, Investing

Reviewed

Updated: May 2, 2024, 4:18pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

With more than 400 funds to choose from in the U.S., there’s something for every investor in the iShares ETF fund family. Financial services giant BlackRock launched the first iShares ETFs in 1996. Since then, it has become the largest issuer of exchange-traded funds in the U.S.

The best iShares ETFs depend entirely upon an individual investor’s goals, strategy and time horizon. For the listing below, we sorted the hundreds of iShares funds to find the best offers for average investors given this unusual time in financial markets. Our picks lean toward conservative funds that offer maximum diversification, low volatility and great value.

Best Ofs

Show Summary

The Best iShares ETFs Of May 2024

iShares Global 100 ETF (IOO)

Expense Ratio

0.41%

Dividend Yield

1.38%

10-Year Avg. Ann. Return

11.65%

0.41%

1.38%

11.65%

Editor's Take

Holding about 100 of the world’s largest companies, the iShares Global 100 ETF benefits investors who understand there are investment opportunities around the globe, although the U.S. is where many of the most important companies reside.

U.S.-based companies make up about 75% of IOO’s portfolio. Several factors bode well for IOO going forward. The main ones are the stability of its component stocks. That’s because of their size, not to mention low price volatility and reasonable valuations.

This passive fund tracks the S&P Global 100 Index, which is made up of 100 of the biggest mega-cap stocks in the global stock market. Tech stocks compose more than 33% of IOO’s portfolio, while healthcare, consumer cyclical, financial services and consumer staples are the next largest sectors.

iShares Core S&P 500 ETF (IVV)

Expense Ratio

0.03%

30-Day SEC Yield

1.32%

Avg. Ann. Return Since Inception (May 2000)

7.28%

0.03%

1.32%

7.28%

Editor's Take

If you want to own just one equity ETF, the passively managed iShares Core S&P 500 is a great choice. In addition to this list, IVV is on our list of the best S&P 500 ETFs. IVV is a market capitalization weighted, low-fee, passive fund that owns the most important publicly traded companies in the U.S.

IVV’s expense ratio makes capturing U.S. stock market returns nearly free, while the fund’s dividend yield cushions price declines and provides income.

During the past 15 years, the S&P 500 has delivered annual returns of between about 12% and 13%. Most diversified investment portfolios should own a fund like IVV to capture these benefits of U.S. market movements without the added effort of stock picking.

iShares MSCI USA Momentum Factor ETF (MTUM)

Expense Ratio

0.15%

Dividend Yield

0.83%

10-Year Avg. Ann. Return

12.72%

0.15%

0.83%

12.72%

Editor's Take

The iShares MSCI USA Momentum Factor ETF’s objective is to profit from investing in large- and mid-cap U.S. stocks with higher price momentum. This low expense ratio strategy fund contains about 125 companies and is heavily concentrated in technology and healthcare stocks, which together comprise about 45% of the portfolio.

MTUM employs a momentum investing strategy. With that approach, an investor aims to buy securities that are rising and sell them when they have peaked–when they start to lose momentum. The strategy requires discipline. Momentum investors must pay as much attention to right time to exit positions as they do to timing the start of new positions.

iShares S&P Mid-Cap 400 Value ETF (IJJ)

Expense Ratio

0.18%

Dividend Yield

1.65%

10-Year Avg. Ann. Return

8.33%

0.18%

1.65%

8.33%

Editor's Take

The iShares S&P Mid-Cap 400 Value is a mid-cap ETF concentrated on reasonably valued mid- and small-sized companies. Despite the numerical, investment style and market-capitalization components of its name, IJJ holds roughly 305 holdings, which include small-cap, blend and growth names. Those add to the fund’s volatility but also likely aid its usual outperformance versus the mid-cap value category average.

IJJ is concentrated in five sectors—financials, industrials, consumer discretionary, information technology and real estate. When used in conjunction with a market-cap weighted S&P 500 ETF like IVV, this fund can be a good diversifier.

iShares Core Dividend Growth ETF (DGRO)

Expense Ratio

0.08%

Dividend Yield

2.37%

Avg. Ann. Return Since Inception (June 2014)

11.08%

0.08%

2.37%

11.08%

Editor's Take

In times of market uncertainty, investing in companies with growing dividends provides a measure of security. Large-cap equity investors seeking value, growth and cash flow can find what they’re looking for in the iShares Core Dividend Growth ETF.

Investors will probably recognize the names of DGRO’s 10 largest companies, which make up more than 25% of the fund. DGRO has more than 400 holdings, which ensures broad diversification. More than 50% of fund assets are at work in the health care, financials and tech sectors.

iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB)

Expense Ratio

0.04%

Dividend Yield

3.51%

10-Year Avg. Ann. Return

1.75%

0.04%

3.51%

1.75%

Editor's Take

Selecting bond funds can be a tricky business. We like iShares 1-5 Year Investment Grade Corporate Bond ETF because of its low expense ratio and diverse bond maturity breakdown.

Roughly 50% of the bonds in IGSB will mature within the next three years. Approximately 40% mature in three to five years. About 5% come due in five to 10 years. Overall, IGSB’s average effective maturity is roughly three years.

BlackRock Short Maturity Bond ETF (NEAR)

Expense Ratio

0.25%

Dividend Yield

4.96%

10-Year Avg. Ann. Return

1.89%

0.25%

4.96%

1.89%

Editor's Take

Providing monthly distributions, BlackRock Short Maturity Bond ETF is suitable for income investors. Part of the iShares family, this actively managed short term bond fund is designed for investors seeking current income.

The average effective duration of 1.94 means the fund’s price should remain relatively stable and income should rise along with interest rates. At the same time, NEAR’s more than 300 holdings minimize credit and default risk. The bonds are well-diversified across asset classes with a large portion of high credit quality issues.

*Data sourced from Morningstar Direct, current as of May 1, 2024, unless noted otherwise. Return since inception is through April 30, 2024.

Methodology

When screening iShares’ 396 ETF offerings, we started by separating out the 254 equity ETFs. From that initial list we categorized the funds by region, sub asset class, three to five year return and expense ratio. Then we eliminated any ETFs launched since 2018. Next we eliminated all sector, country and industry specific ETFs.

From the remaining 98 ETFs, we selected a variety of equity funds that might appeal to the general investor. We chose one core U.S. equity index fund. The remaining selections spanned dividend, value, momentum and global ETFs, which yielded five winners.

For the bond selections we reviewed all of iShares’ 114 fixed income offerings seeking two types of funds: one short term income and another intermediate term corporate. We settled on the BlackRock Short Maturity Bond ETF and iShares 1-5 Year Investment Grade Corporate Bond ETF.

Together, these two bond ETFs could yield a complete bond portfolio for any investor. Ultimately, Blackrock’s iShares ETF offerings are so comprehensive and well-regarded that most investors should be able to find a fund that suits their goals.

To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products.

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Barbara Friedberg

Investing Expert Writer

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