3 Great U.S. ETFs for 2024 and Beyond

These three highly rated American ETFs are in it for the long haul.

Ryan Jackson 15 January, 2024 | 4:06AM
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3 Great ETFs for 2024 and Beyond

In investing—as in life—it’s impossible to know what lies ahead. But when it comes to ETFs, paying attention to important attributes like fees, index construction, and risk management can point investors to strategies poised for strong performance in the near and distant future. With that in mind, here are three great ETFs for 2024 and the years beyond.

Vanguard Large-Cap ETF VV
Avantis International Equity ETF AVDE
Pimco Active Bond ETF BOND

First on my list is Vanguard Large-Cap ETF VV. This strategy earns a Gold Morningstar Medalist Rating because it’s cheap and follows a straightforward, sensible process.

This index fund tracks the CRSP US Large Cap Index, which absorbs stocks that represent the largest 85% of the U.S. market and weights them by market cap. Allowing stock valuations to determine portfolio weight taps into the collective wisdom of a widely followed market. Considering just 10% of active U.S. large-cap funds beat their average passive peer over the past 10 years, this is a smart place to go passive.

This fund performs much like those that track the Russell 1000 or S&P 500 indexes, but it stands out for two reasons. Number one: Its index includes buffers designed to dial back turnover and the requisite trading costs that come directly out of performance. And number two: It’s cheap. The fund’s 0.04% expense ratio takes a small bite out of the total returns.

Next up we have Avantis International Equity ETF AVDE and earns a Silver Morningstar Medalist Rating.

This index strategy sweeps in the broad foreign developed stock market and bends toward companies with low price/book ratios and high profitability. It also takes measures to reduce trading costs, which partner with a low fee to make this a very cheap all-around offering.

Tilting the portfolio toward profitable companies that trade at attractive valuations makes sense because it taps into the value and quality factors—both of which have historically been tied to market-beating returns. That valuable exposure doesn’t come at the expense of diversification. The portfolio spans thousands of stocks, ensuring that the plight of one firm won’t sink the full portfolio.

Launched in 2019, this fund is still building up a track record. It ranked in the lower half of the foreign large-blend category for the year to date through November 2023, but it beat over 85% of rivals over the past three years.

Pimco Active Bond ETF BOND, is a strong choice in the fixed-income universe that sports a Silver Morningstar Medalist Rating.

This active strategy offers the chance to invest alongside some of the industry’s best bond managers. The trio that runs this fund boasts a wealth of experience, and each has delivered excellent results on similar strategies in the past.

This income-oriented fund is designed to deliver a better yield than the broad bond market without shouldering too much risk. It has mostly achieved that objective, thanks in part to its strategic approach that led to a focus on mortgage pools in the portfolio. The strategy’s duration can range from 2.0 to 8.0 years, but it tends to keep that metric below its category peers.

Since adopting its current strategy in 2017, this fund has posted mixed results. But it effectively balances income generation and risk, making it a solid choice for income-seeking investors for the years to come.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Avantis International Equity ETF63.16 USD0.32Rating
Vanguard Large-Cap ETF250.89 USD0.65Rating

About Author

Ryan Jackson  is a manager research analyst, passive strategies, for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers passive equity strategies.

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