What Is The Best REIT ETF For Europeans (UCITS)?
We show you the REIT ETF that you can buy in Europe which is also a UCITs fund.
There are many ETF databases out there.
Morningstar covers mutual funds very well.
But what are the BEST ETFs and mutual funds and how do you measure them?
This post was inspired by Paul Merriman who has for many years recommended ETFs and mutual funds to implement his portfolio strategies.
We have expanded on the “Best In Class” concept to include many more asset classes.
The first thing you should know is that there is rarely ONE best ETF or fund. It all depends on many ariables:
There are A LOT of really, really BAD ETFs and mutual funds out there. Make sure you avoid the worst by picking one of the ETFs below.
As of 2021 we now also track ESG funds. We also track the dividend yields and expense ratios for all funds.
Below you can see which ETFs and mutual funds that we recommend for each asset class.
|Asset Class||Best In Class||Best Vanguard ETF||Best iShares ETF||Best Schwab ETF||Best Fidelity ETF|
|Total US Market||VTI||VTI||ITOT||SCHB|
|Large Cap Value||VONV||VONV||IWD||SCHV|
|Large Cap Blend (S&P 500)||VOO||VOO/VV||IVV/IWB||SCHX|
|Large Cap Growth||VUG||VUG||IWF||SCHG|
|Mid Cap Value||VOE||VOE||IWS|
|Mid Cap Blend||VO||VO||IJH/IWR||SCHM|
|Mid Cap Growth||VOT||VOT||IWP|
|Small Cap Value||VIOV||VBR/VIOV||IWN/IJS|
|Small Cap Blend||VIOO||VB/VIOO||IJR||SCHA|
|Small Cap Growth||VBK||VBK||IWO|
|Real Estate - REIT||VNQ||VNQ||IYR||SCHH||FREL|
|Total International Ex-US||VEU||VXUS/VEU||IXUS||FDEV|
|Long Term Treasury||TLT||VGLT||TLT||SCHQ|
|Intermediate Term Treasury||VGIT||VGIT||IEFA||SCHR|
|Short Term Treasury||VGSH||VGSH||SHY||SCHO|
|Total Bond Market||BND||BND||AGG||SCHZ||FBND|
|Short Term Govt/Corp Bond||BSV||BSV||ISTB||FLDR|
|T-bills/Treasuries Money Market||BIL||VGSH||SHV/ICSH||SCHO|
|Inter. Term Corporate Bond||LQD||VCIT||LQD||SCHI||FCOR|
|Health Care Sector||XLV||VHT||IYH||FHLC|
|Precious Metals Sector||GLTR|
|Short Term Tax Exempt Munis||SUB||SUB|
|Intermediate Term Tax Exempt Munis||VTEB||VTEB||MUB|
|Long Term Tax Exempt Munis||PZA|
|Short Term Investment Grade||VCSH||VCSH||IGSB||SCHJ|
|High Yield Corporate Bonds||HYG||HYG|
|Treasury Inflation-Protected Securities - TIPS||VTIP||VTIP||TIP||SCHP|
|Total World Market||VT||VT||ACWI|
|Minimum Volatility Factor||USMV||VFMV||USMV||FDLO|
|High Dividend Yield||VYM||VYM||HDV||FDVV/FDHY|
|International Small Value||DLS|
|Emerging Markets Small Blend||EWX|
|Emerging Markets Value||FNDE||DVYE|
|Two-Year Global Fixed-Income||BNDW|
|Five-Year Global Fixed-Income||BNDW|
|Emerging Market Bonds||VWOB||VWOB||EMB|
|Long Term Investment-grade Bonds||VCLT||VCLT|
|Long Term Treasury STRIPS||EDV|
|Intermediate Term Govt/Corp Bond||BIV||BIV||GVI|
Together these factors decide if the fund represents the appropriate asset class the best.
Morningstar.com is a great resource to research ETFs and mutual funds. If you want to research U.S. small-cap value ETFs you could look up VIOV, VBR, and SLYV (among others) on morningstar.com. Click the portfolio tab and you get an overview of what’s in the fund. Here are the 3 funds as of 2018:
VIOV:Vanguard S&P Small-Cap 600 Value Index Fund ETF Shares
VBR:Vanguard Small-Cap Value Index Fund ETF Shares
SLYV:SPDR® S&P 600 Small Cap Value ETF
As you can see VBR has some attributes that make it a poor candidate for representing the small-capvalue asset class:
I cheated a little and selected two funds, SLYV and VIOV, that both track the same index. They track the S&P Small-Cap 600 Value Index.
Next, you want to check:
Super important note:
Notice that a return comparison doesn’t even factor in when we are comparing funds. If we follow the above guidelines we would select the best funds and therefore theoretically get the appropriate returns for that asset class. Sure some funds may beat other funds within the same category, but chasing performance is a loser’s game.
If you find that you have found two equally good funds and can’t decide on which one – BUY THEM BOTH. No need to agonize over which funds to select. The commissions on buying and selling is cheap and often free. It is a very small price to pay to avoid regret.
It is not easy finding the BEST ETF or mutual fund. But it is easy to AVOID the worst. By using a few simple metrics and Morningstar you can narrow down the field to just a few. While finding the best fund may be impossible, it is often to find one that is good enough.