Uncovering interesting ETFs available in the US markets

The US markets have more than 2,000 ETFs listed but as first-time investors in the US markets, we may not be aware of a lot of interesting ETFs.

Based on data we see on the Vested platform, the obvious ETFs - S&P 500 and Nasdaq 100 are quite popular. Along with them, ARKG and ARKF, ETFs created by this company called ARK are surprisingly investor favorites. ARK has done a good job creating ETFs around new themes like Fintech, Genomic Revolution, Space, and Innovation. TQQQ, an ETF that shorts the Nasdaq is also quite popular (should only be looked at by advanced investors though). But beyond these few, we donโ€™t really see any other ETFs being picked by investors.

So, wanted to start this thread so that we can share interesting ETFs that we uncover. Whenever you share an ETF, please use the below format:

  • Name
  • Ticker
  • Expense ratio
  • Provider
  • Industry / Category
  • Why is it an interesting ETF

I can start with one that I recently uncovered (please do not consider this as investment advice!):

  • Name: Invesco S&P 500 Equal Weight
  • Ticker: RSP
  • Expense ratio: 0.2%
  • Provider: Invesco
  • Industry / Category: Index ETF
  • Why is it an interesting ETF: The S&P 500 is a market-weighted index. What that means is that the % allocation to the 500 companies that are part of the index is decided based on that market cap. In recent times, the market cap of large technology companies (Apple, Facebook, Amazon, Google, Microsoft) has become huge (crossed $1 Trillion!). This means that they have started becoming a larger and larger part of the S&P 500 (20% as of Oct 6, 2021) and are driving a large part of the S&P 500 returns. The goal of the S&P 500 ETF is to provide diversified exposure to the top 500 companies, but with large tech becoming so dominant, the diversification does not seem to be happening. As the name suggests, the Invesco Equal Weight ETF allocates the same % to each of the 500 companies and solves the imbalanced allocation problem.
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Hereโ€™s a pretty decent ETF finder tool: https://www.etf.com/etfanalytics/etf-finder

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