ETFs

The Optimal ETFs For Each Market Segment

A Framework for Choosing ETFs

In one of my previous posts, I wrote about my framework for choosing ETFs since I wanted a method of choosing the optimal ETFs for expressing my market views. Generally, the framework is to choose an ETF with a low expense ratio, low trading costs, low tracking error, and a tax-advantaged structure.

One of the key insights I got from writing that post was that investors should weigh each of those elements depending on what kind of investor they are. A passive, long-term investor should heavily weight a low expense ratio and perhaps not care too much about trading costs. On the other hand, an active investor that trades often should heavily weight trading costs. At the extreme, an investor with no long or short bias should only care about trading costs and not the expense ratio because a high expense ratio is good if you are shorting the ETF.

ETF Scoring Methodology

In this post, I identify the optimal ETFs for each market segment for both a passive investor and active investor. Initially, I wanted to collect data by myself and create a scoring method to rank ETFs, but after a lot of research on this topic, I found that ETF.com has already scored ETFs across three metrics: efficiency, tradability, and fit. From the ETF website:

“In the ETF.com scoring methodology, E stands for Efficiency, which measures how well a fund delivers on its core promise, focusing on factors like tracking error, costs and systematic risk. T stands for Tradability, which measures the liquidity of the fund and the likelihood of getting a fair deal when trading an ETF. F stands for Fit, which measures how well the ETF captures the returns of the targeted market, compared against a neutral benchmark.”

I reviewed several other scoring methodologies from other providers, but I believe that ETF.com’s makes the most sense. Interested readers can learn more about their scoring methodology by looking at their FAQ and methodology.

The ETF.com scores range from 0 to 100 across the three metrics. To get a sense of the range of the scores, I plot the efficiency versus tradability scores below. Equity funds generally have the best scores, followed by fixed income, commodity, currency, and alternatives.

Optimal ETFs for Each Market Segment

Passive Score Versus Active Score

The ETF.com scoring methodology was still a little bit too confusing for me, so I wanted to mold their scoring methodology to fit my framework. All I want to know is the optimal ETF for each market segment, conditional on whether I am passively managing my investments or actively managing my investments. 

Therefore, I created weighted averages of ETF.com’s scores. For a passive investor, the weights are 70% efficiency, 20% tradability, and 10% fit. These weights were chosen because the primary cost for passive investors are the expense ratio which is captured in the efficiency score. Passive investors are less likely to trade in and out of ETFs, so trading costs captured in the tradability score are less relevant.

Along the same line of thinking, for an active investor, the weights are 20% efficiency, 70% tradability, and 10% fit.

I selected a 10% weight for fit because I wanted to slightly penalize ETFs that stray away from a broad-based market capitalization weight methodology, often seen in smart beta ETFs or ETFs with certain factor tilts.

The Optimal ETFs for Each Market Segment

Below are the various market segments ranked by assets under management and my selection on the optimal ETFs for a passive investor and active investor. For many market segments, the optimal passive ETF is not the same as the optimal active ETF.

I obtained this data from my post on scraping ETF data. You can also take a look at the code that generates these figures on my Github repository.

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Market Segment AUM Passive Ticker Passive Score Active Ticker Active Score
1 Equity: U.S. – Large Cap 451.91 IVV 99.65 VOO 99.49
2 Equity: Developed Markets Ex-U.S. – Total Market 140.78 IEFA 96.78 EFA 92.68
3 Equity: U.S. – Total Market 136.58 SCHB 99.74 VTI 99.75
4 Equity: Emerging Markets – Total Market 98.96 IEMG 94.98 IEMG 91.96
5 Equity: U.S. – Mid Cap 83.07 VO 99.24 VO 99.36
6 Fixed Income: U.S. – Broad Market Investment Grade 77.64 AGG 95.92 AGG 92.83
7 Equity: U.S. – Large Cap Growth 76.94 SCHG 98.52 IVW 98.79
8 Equity: U.S. – Small Cap 72.68 SCHA 99.26 VB 99.06
9 Equity: U.S. – Large Cap Value 71.22 SCHV 99.35 VTV 99.31
10 Equity: U.S. – High Dividend Yield 62.78 SCHD 98.81 VYM 99.00
11 Equity: U.S. Real Estate 53.28 SCHH 96.58 VNQ 98.06
12 Commodities: Precious Metals Gold 50.83 OUNZ 93.44 GLD 97.29
13 Equity: Developed Europe – Total Market 33.70 VGK 96.10 VGK 92.85
14 Fixed Income: U.S. – Corporate Investment Grade 33.40 LQD 90.87 LQD 90.43
15 Fixed Income: U.S. – Corporate Investment Grade Short-Term 32.72 SCPB 93.82 SCPB 92.92
16 Equity: Global Ex-U.S. – Total Market 28.40 IXUS 95.27 VEU 91.75
17 Fixed Income: U.S. – Corporate High Yield 28.34 HYG 82.60 HYG 85.88
18 Equity: U.S. Technology 27.91 FTEC 97.97 VGT 98.31
19 Fixed Income: U.S. – Corporate Preferred Stock 25.20 PFXF 79.21 PFXF 85.22
20 Equity: Japan – Total Market 22.94 EWJ 89.42 EWJ 88.08
21 Equity: U.S. Health Care 22.40 FHLC 98.96 XLV 98.68
22 Fixed Income: U.S. – Corporate Investment Grade Intermediate 22.30 ITR 93.83 ITR 93.43
23 Equity: U.S. Financials 21.61 FNCL 98.63 VFH 98.02
24 Equity: U.S. Energy 20.81 XLE 98.01 XLE 98.82
25 Fixed Income: U.S. Government TIPS 20.56 SCHP 97.91 SCHP 97.73
26 Equity: U.S. – Small Cap Value 20.52 VBR 99.16 VBR 99.05
27 Equity: U.S. – Mid Cap Value 19.34 VOE 98.00 VOE 98.10
28 Fixed Income: U.S. – Government/Credit Investment Grade Short-Term 18.57 BSV 87.08 BSV 77.89
29 Equity: Global – Total Market 18.48 VT 94.98 VT 95.01
30 Equity: U.S. – Mid Cap Growth 17.07 VOT 97.81 VOT 98.24
31 Fixed Income: Emerging Markets – Sovereign 16.64 EMB 83.35 EMB 82.52
32 Fixed Income: U.S. Government Treasury Intermediate 16.56 ITE 96.26 IEI 96.02
33 Equity: U.S. Consumer Non-cyclicals 16.49 VDC 97.85 VDC 98.49
34 Equity: U.S. – Small Cap Growth 16.39 VBK 98.59 VBK 98.66
35 Equity: Global Gold Miners 16.33 RING 91.03 SGDM 90.20
36 Equity: U.S. Consumer Cyclicals 14.07 VCR 98.03 XLY 98.60
37 Equity: U.S. Utilities 12.79 VPU 97.92 VPU 97.88
38 Fixed Income: U.S. – Government/Credit Investment Grade Intermediate 12.79 GVI 94.58 GVI 94.59
39 Fixed Income: U.S. Government Agency MBS 12.34 VMBS 92.84 MBB 94.50
40 Fixed Income: U.S. Government Treasury Short-Term 11.79 SCHO 97.55 SCHO 98.84
41 Fixed Income: U.S. – Municipals Investment Grade 11.42 MUB 87.89 MUB 78.93
42 Equity: U.S. Industrials 10.99 XLI 98.25 XLI 98.92
43 Equity: U.S. Biotech 10.91 IBB 92.50 IBB 95.45
44 Fixed Income: U.S. Government Treasury Long-Term 9.43 TLO 96.14 TLT 96.85
45 Equity: Developed Markets Ex-U.S. – Small Cap 9.21 SCHC 94.06 SCZ 89.75
46 Equity: Global Ex-U.S. Real Estate 9.14 VNQI 93.17 VNQI 88.33
47 Fixed Income: U.S. – Corporate High Yield Short-Term 8.00 SHYG 86.80 SJNK 82.24
48 Commodities: Precious Metals Silver 7.42 SIVR 96.29 SIVR 97.35
49 Fixed Income: U.S. – Broad Market Investment Grade Short-Term 7.26 NEAR 77.41 NEAR 76.36
50 Fixed Income: Global – Broad Market 6.23 RIGS 75.99 BOND 71.57
51 Commodities: Broad Market 6.05 GCC 75.90 GSG 88.90
52 Fixed Income: U.S. – Corporate High Yield Floating Rate 5.91 BKLN 69.88 BKLN 70.61
53 Fixed Income: Global Ex-U.S. – Broad Market Investment Grade 5.85 BNDX 83.99 BNDX 77.60
54 Equity: India – Total Market 5.81 INDA 86.20 INDA 85.73
55 Equity: U.S. Banks 5.48 KBWB 94.48 KBWB 96.24
56 Equity: Global Natural Resources 5.39 GNR 89.65 IGE 92.94
57 Equity: U.S. Basic Materials 5.32 XLB 97.47 XLB 97.64
58 Equity: U.S. – Extended Market 5.27 VXF 97.01 VXF 97.20
59 Equity: Developed Europe – Large Cap 5.16 FEZ 93.76 FEZ 90.79
60 Fixed Income: U.S. Government Treasury Cash Equivalents 5.00 SHV 96.42 SHV 97.81
61 Fixed Income: U.S. – Municipals Investment Grade Short-Term 4.79 SHM 86.80 SHM 77.90
62 Commodities: Energy Crude Oil 4.43 USO 89.50 USO 94.36
63 Equity: Germany – Total Market 4.42 EWG 92.27 EWG 92.47
64 Fixed Income: U.S. Government TIPS Short-Term 4.27 STIP 96.66 VTIP 97.93
65 Equity: Brazil – Total Market 3.86 EWZ 88.15 EWZ 93.00
66 Equity: U.S. Internet 3.84 FDN 88.03 FDN 93.21
67 Equity: China – Large Cap 3.83 FXI 78.83 FXI 83.00
68 Equity: Global Technology 3.80 IXN 91.35 SKYY 91.47
69 Equity: Developed Asia-Pacific – Total Market 3.78 VPL 94.91 VPL 90.05
70 Equity: China – Total Market 3.69 PGJ 80.22 MCHI 80.81
71 Fixed Income: U.S. – Broad Market Investment Grade Floating Rate 3.63 FLOT 90.20 FLOT 80.89
72 Equity: South Korea – Total Market 3.45 EWY 87.12 EWY 87.91
73 Equity: Developed Markets Ex-U.S. – High Dividend Yield 3.30 IDV 88.55 IDV 88.82
74 Equity: Canada – Total Market 3.03 EWC 93.33 EWC 96.24
75 Equity: Developed Markets Ex-U.S. – Total Market Value 2.96 EFV 90.77 EFV 89.00
76 Equity: Global Real Estate 2.95 REET 87.74 RWO 86.49
77 Fixed Income: U.S. – Municipals High Yield 2.89 HYD 78.25 HYD 74.20
78 Equity: Asia-Pacific Ex-Japan – Total Market 2.85 AAXJ 86.06 AAXJ 87.94
79 Fixed Income: U.S. – Corporate Investment Grade Long-Term 2.80 CLY 87.52 VCLT 83.31
80 Fixed Income: U.S. – Convertibles 2.76 CWB 67.79 CWB 66.96
81 Fixed Income: U.S. Government Treasury 2.69 GOVT 96.20 GOVT 97.58
82 Equity: Taiwan – Total Market 2.67 EWT 83.92 EWT 85.82
83 Equity: Global Ex-U.S. – Small Cap 2.62 VSS 91.52 VSS 85.92
84 Fixed Income: U.S. Government TIPS Intermediate 2.50 TIPX 87.31 TDTF 92.93
85 Equity: U.S. Homebuilding 2.41 ITB 91.44 ITB 95.05
86 Equity: Developed Markets Ex-U.S. – Total Market Growth 2.35 EFG 91.12 EFG 88.49
87 Fixed Income: U.S. – Municipals Investment Grade Intermediate 2.35 ITM 87.12 ITM 78.96
88 Equity: Developed Asia-Pacific Ex-Japan – Total Market 2.31 EPP 89.99 EPP 89.62
89 Alternatives: Volatility 2.25 VXX 82.45 VXX 89.50
90 Alternatives: Absolute Returns 2.21 QAI 76.91 QAI 88.41
91 Equity: U.S. Pharmaceuticals 2.20 XPH 89.22 PJP 91.12
92 Equity: Developed Markets Ex-U.S. – Large Cap 2.18 FNDF 90.61 FNDF 86.67
93 Equity: U.S. Telecommunications 2.13 FCOM 94.47 VOX 92.65
94 Equity: Emerging Markets – High Dividend Yield 2.11 DEM 83.37 DEM 85.46
95 Equity: U.K. – Total Market 2.10 EWU 91.04 EWU 90.65
96 Equity: Russia – Total Market 2.09 RSX 84.71 RSX 87.26
97 Equity: U.S. Oil & Gas Exploration & Production 2.04 XOP 93.19 XOP 95.45
98 Equity: Hong Kong – Total Market 2.00 EWH 87.53 EWH 87.84
99 Equity: Global – Large Cap 1.85 IOO 90.59 IOO 88.03
100 Fixed Income: U.S. – Government/Credit Investment Grade Long-Term 1.85 BLV 79.56 BLV 77.40
101 Equity: Global Infrastructure 1.83 IGF 89.34 IGF 91.44
102 Equity: U.S. – Total Market Value 1.72 IUSV 98.28 IUSV 95.53
103 Equity: Australia – Total Market 1.62 EWA 90.85 EWA 89.10
104 Equity: Global Health Care 1.57 IXJ 91.63 IXJ 94.12
105 Equity: Emerging Markets – Small Cap 1.52 DGS 78.94 DGS 81.06
106 Fixed Income: Global Ex-U.S. – Sovereign Investment Grade 1.52 BWX 82.05 BWX 77.79
107 Equity: Global Water 1.46 CGW 88.43 CGW 88.63
108 Equity: U.S. Health Care Equipment & Supplies 1.45 IHI 93.43 IHI 97.08
109 Equity: Global – High Dividend Yield 1.37 SDIV 81.67 SDIV 84.87
110 Equity: U.S. Aerospace & Defense 1.36 ITA 92.47 ITA 95.88
111 Fixed Income: Global – Corporate High Yield Floating Rate 1.35 SRLN 69.14 SRLN 69.92
112 Equity: U.S. Mortgages 1.33 MORT 88.55 REM 94.18
113 Equity: Switzerland – Total Market 1.22 EWL 89.64 EWL 91.61
114 Fixed Income: Global – Corporate 1.20 FPE 70.29 FPE 81.66
115 Equity: India – Large Cap 1.17 PIN 73.31 PIN 81.43
116 Equity: Global Energy 1.14 IXC 91.14 IXC 92.25
117 Equity: Global Ex-U.S. – High Dividend Yield 1.10 DWX 82.32 DWX 84.80
118 Fixed Income: U.S. – Municipals Build America Bonds 1.07 BAB 80.80 BAB 73.88
119 Fixed Income: U.S. Government Short-Term 1.06 VGSH 96.51 VGSH 98.29
120 Equity: Developed Europe – Small Cap 1.05 IEUS 84.47 DFE 86.31
121 Fixed Income: Global – Broad Market High Yield 1.02 HYLS 62.13 HYLS 70.62
122 Inverse Currency: Basket – Global Ex-US 1.02 UUP 84.94 UUP 93.23
123 Equity: U.S. – Total Market Growth 1.01 IUSG 98.51 IUSG 96.19
124 Fixed Income: Global Cash Equivalents 1.01 GSY 76.98 GSY 76.28
125 Commodities: Agriculture 0.95 DBA 76.26 DBA 85.87
126 Equity: Mexico – Total Market 0.93 EWW 94.20 EWW 97.94
127 Equity: North America Technology 0.92 IGM 91.35 IGM 93.68
128 Equity: Global Agriculture 0.91 MOO 89.74 MOO 90.96
129 Fixed Income: U.S. – Broad Market 0.91 IUSB 82.23 IUSB 72.64
130 Fixed Income: U.S. – Broad Market Short-Term 0.89 ISTB 92.98 ISTB 85.49
131 Fixed Income: U.S. Government Intermediate 0.89 VGIT 90.55 VGIT 92.35
132 Equity: U.S. Financial Services 0.86 IYG 92.53 IYG 95.95
133 Fixed Income: California – Municipals Investment Grade 0.85 CMF 87.34 CMF 76.44
134 Equity: Latin America – Large Cap 0.84 ILF 89.98 ILF 95.34
135 Equity: U.S. – Micro Cap 0.84 IWC 87.48 IWC 90.07
136 Fixed Income: U.S. – Corporate Preferred Stock Floating Rate 0.83 VRP 69.41 VRP 81.89
137 Equity: Emerging Markets – Large Cap 0.78 ADRE 83.19 FNDE 83.58
138 Fixed Income: U.S. – Corporate High Yield Intermediate 0.77 BSJK 71.57 BSJK 69.97
139 Equity: U.S. Insurance 0.75 KIE 92.54 KIE 95.00
140 Equity: Indonesia – Total Market 0.74 EIDO 88.49 EIDO 88.02
141 Equity: U.S. Transportation 0.74 IYT 92.14 IYT 96.67
142 Fixed Income: Developed Markets Ex-U.S. – Sovereign 0.73 IGOV 77.92 IGOV 71.54
143 Equity: Emerging Asia-Pacific – Total Market 0.71 EEMA 85.22 GMF 80.21
144 Equity: Global Oil & Gas Equipment & Services 0.70 OIH 91.61 OIH 93.48
145 Equity: Emerging Markets Consumer Cyclicals 0.69 ECON 71.12 ECON 80.85
146 Equity: U.S. Health Care Providers & Services 0.69 IHF 91.74 IHF 92.96
147 Equity: Global Renewable Energy 0.68 QCLN 78.52 TAN 78.30
148 Equity: U.S. Semiconductors 0.68 SOXX 91.91 SOXX 96.35
149 Equity: North America Software 0.67 IGV 89.63 IGV 93.62
150 Equity: Global Consumer Non-cyclicals 0.64 KXI 89.97 KXI 88.70
151 Fixed Income: U.S. Government Agencies 0.62 AGZ 89.06 AGZ 76.05
152 Equity: Global Biotech 0.61 BBH 94.03 BBH 96.02
153 Equity: Global Silver Miners 0.61 SLVP 87.89 SLVP 85.58
154 Equity: Japan – Small Cap 0.61 SCJ 89.94 SCJ 86.62
155 Fixed Income: Global Ex-U.S. – Sovereign Inflation-Protected 0.61 WIP 70.84 WIP 63.54
156 Equity: Spain – Total Market 0.60 EWP 91.28 EWP 91.39
157 Commodities: Energy Natural Gas 0.59 UNG 81.19 UNG 90.57
158 Commodities: Precious Metals 0.57 GLTR 85.32 DBP 90.62
159 Equity: Singapore – Total Market 0.56 EWS 87.36 EWS 85.70
160 Commodities: Precious Metals Platinum 0.54 PPLT 92.04 PPLT 95.49
161 Equity: U.S. Metals & Mining 0.54 XME 92.05 XME 94.72
162 Equity: U.S. Retail 0.53 XRT 90.15 XRT 92.76
163 Fixed Income: U.S. Government Long-Term 0.53 VGLT 84.29 VGLT 90.99
164 Equity: Frontier Markets – Total Market 0.50 FM 56.80 FM 71.24
165 Fixed Income: U.S. – Broad Market Intermediate 0.48 VBND 63.28 VBND 66.75
166 Equity: Developed Markets – Total Market 0.47 URTH 92.16 URTH 85.08
167 Equity: U.S. Oil & Gas Equipment & Services 0.45 IEZ 91.76 IEZ 92.22
168 Equity: Italy – Total Market 0.43 EWI 90.14 EWI 90.41
169 Equity: South Africa – Total Market 0.42 EZA 89.07 EZA 88.89
170 Equity: Thailand – Total Market 0.42 THD 87.13 THD 87.06
171 Equity: Global Metals & Mining 0.37 PICK 86.67 PICK 83.37
172 Equity: Global Private Equity 0.37 PSP 49.34 PSP 78.77
173 Equity: Global Telecommunications 0.37 IXP 89.64 IXP 87.81
174 Fixed Income: Emerging Markets – Broad Market 0.37 ELD 68.01 ELD 62.31
175 Equity: Turkey – Total Market 0.36 TUR 90.18 TUR 88.91
176 Equity: Asia-Pacific Ex-Japan – Large Cap 0.35 AIA 82.67 AIA 82.56
177 Equity: Global Timber 0.35 WOOD 80.04 WOOD 68.40
178 Equity: Global Consumer Cyclicals 0.34 RXI 89.12 RXI 86.26
179 Equity: Developed Europe Financials 0.33 EUFN 88.32 EUFN 88.60
180 Equity: Malaysia – Total Market 0.33 EWM 86.67 EWM 84.45
181 Equity: Vietnam – Total Market 0.33 VNM 72.30 VNM 76.75
182 Fixed Income: U.S. – Corporate Asset-backed 0.33 CMBS 90.04 CMBS 85.03
183 Equity: Chile – Total Market 0.32 ECH 88.80 ECH 91.18
184 Fixed Income: Global – Broad Market Short-Term 0.32 MINC 67.83 MINC 70.02
185 Fixed Income: Emerging Markets – Corporate High Yield 0.31 HYEM 70.36 HYEM 65.11
186 Fixed Income: New York – Municipals Investment Grade 0.30 NYF 85.12 NYF 70.08
187 Equity: France – Total Market 0.29 EWQ 91.48 EWQ 91.73
188 Equity: India – Small Cap 0.29 SMIN 78.48 SCIF 69.00
189 Equity: Sweden – Total Market 0.29 EWD 86.28 EWD 88.98
190 Equity: China Technology 0.28 KWEB 76.63 KWEB 84.51
191 Equity: Global Semiconductors 0.27 SMH 92.21 SMH 95.44
192 Fixed Income: U.S. – Government/Credit Investment Grade 0.27 GBF 91.81 GBF 86.07
193 Currency: Euro 0.26 FXE 86.35 FXE 95.86
194 Equity: Global Pharmaceuticals 0.25 PPH 90.52 PPH 91.09
195 Equity: Philippines – Total Market 0.25 EPHE 87.70 EPHE 87.89
196 Equity: Greece – Total Market 0.24 GREK 73.31 GREK 77.73
197 Equity: U.S. Natural Gas 0.24 FCG 92.15 FCG 96.21
198 Fixed Income: North America – Corporate Preferred Stock 0.24 SPFF 71.55 SPFF 78.04
199 Fixed Income: U.S. – Municipals Investment Grade Long-Term 0.24 MLN 85.37 MLN 73.89
200 Currency: Pound Sterling 0.23 FXB 86.37 FXB 95.86
201 Equity: Global Financials 0.23 IXG 89.20 IXG 83.77
202 Equity: Global Basic Materials 0.22 MXI 88.05 MXI 79.63
203 Equity: Peru – Total Market 0.21 EPU 77.93 EPU 83.49
204 Commodities: Industrial Metals 0.20 DBB 81.75 DBB 90.00
205 Currency: Canadian Dollar 0.20 FXC 86.07 FXC 94.94
206 Fixed Income: U.S. – Broad Market Long-Term 0.20 ILTB 90.99 ILTB 80.98
207 Fixed Income: U.S. – Municipals 0.20 FMB 66.51 FMB 49.15
208 Commodities: Agriculture Coffee 0.19 JO 75.21 JO 90.11
209 Commodities: Precious Metals Palladium 0.19 PALL 91.28 PALL 92.73
210 Equity: Poland – Total Market 0.19 EPOL 88.54 EPOL 89.50
211 Fixed Income: Developed Markets Ex-U.S. – Corporate Investment Grade 0.19 PICB 75.44 PICB 69.26
212 Currency: Australian Dollar 0.18 FXA 85.73 FXA 93.28
213 Equity: Developed Europe – High Dividend Yield 0.18 FDD 73.06 FDD 77.95
214 Equity: Global Industrials 0.18 EXI 86.32 EXI 76.19
215 Equity: Netherlands – Total Market 0.18 EWN 89.75 EWN 90.78
216 Equity: New Zealand – Total Market 0.18 ENZL 89.29 ENZL 84.28
217 Fixed Income: Developed Markets Ex-U.S. – Corporate High Yield 0.18 HYXU 70.36 HYXU 46.61
218 Fixed Income: Global Ex-U.S. – Sovereign Investment Grade Short-Term 0.18 BWZ 72.00 BWZ 51.37
219 Fixed Income: Global Ex-U.S. – Corporate Investment Grade 0.17 IBND 80.47 IBND 68.41
220 Currency: Swiss Franc 0.16 FXF 84.90 FXF 90.58
221 Equity: Developed Markets Ex-Japan – Total Market 0.16 TOK 89.08 TOK 68.62
222 Equity: Developed Markets Ex-U.S. – Extended Market 0.16 PDN 68.99 PDN 57.50
223 Equity: Developed Markets Ex-U.S. – Mid Cap 0.16 DIM 81.78 DIM 67.57
224 Equity: Global – Extended Market 0.16 WBIC 67.00 WBIC 66.53
225 Equity: U.S. Banking and Investment Services 0.16 IAI 90.59 IAI 85.83
226 Equity: U.S. Food 0.16 PBJ 87.18 PBJ 88.45
227 Equity: Brazil – Small Cap 0.15 EWZS 80.52 BRF 80.42
228 Equity: China – Small Cap 0.15 HAO 65.45 HAO 62.70
229 Equity: Global Nuclear Energy 0.15 NLR 71.38 URA 75.40
230 Equity: Global Utilities 0.15 JXI 91.03 JXI 87.13
231 Fixed Income: Australia and New Zealand – Sovereign Intermediate 0.15 AUNZ 63.93 AUNZ 38.23
232 Commodities: Energy 0.14 DBE 74.89 DBE 83.98
233 Currency: Japanese Yen 0.14 FXY 83.55 FXY 95.06
234 Equity: Belgium – Total Market 0.14 EWK 89.68 EWK 89.14
235 Fixed Income: U.S. – Municipals High Yield Intermediate 0.14 SHYD 67.30 SHYD 52.47
236 Equity: Israel – Total Market 0.13 EIS 77.77 EIS 60.75
237 Equity: Latin America – Total Market 0.13 GML 63.62 GML 62.63
238 Equity: Norway – Total Market 0.13 NORW 88.98 NORW 67.85
239 Equity: U.S. Software 0.13 XSW 83.24 XSW 70.01
240 Fixed Income: Global Ex-U.S. – Corporate High Yield 0.13 IHY 76.13 IHY 60.72
241 Equity: Global Retail 0.12 RTH 91.49 RTH 92.66
242 Equity: Ireland – Total Market 0.12 EIRL 81.09 EIRL 83.67
243 Equity: Asia-Pacific – High Dividend Yield 0.11 DVYA 80.15 DVYA 72.21
244 Equity: U.S. Leisure & Recreation 0.11 PEJ 80.94 PEJ 81.14
245 Equity: U.S. Private Equity 0.11 BIZD 66.30 BIZD 76.71
246 Equity: Colombia – Total Market 0.10 GXG 68.69 GXG 67.91
247 Equity: Global Steel 0.10 SLX 80.31 SLX 84.25
248 Fixed Income: Developed Markets – Corporate High Yield 0.10 GHYG 71.67 GHYG 52.13
249 Fixed Income: Developed Markets Ex-U.S. – Corporate Preferred Stock 0.10 IPFF 74.83 IPFF 70.95
250 Fixed Income: U.S. Government TIPS Long-Term 0.10 LTPZ 73.36 LTPZ 69.09
251 Commodities: Agriculture Grains 0.09 JJG 79.26 JJG 90.60
252 Equity: Global Environment 0.09 EVX 68.51 EVX 63.87
253 Fixed Income: Developed Markets Ex-U.S. – Sovereign Short-Term 0.09 ISHG 80.39 ISHG 57.47
254 Fixed Income: Emerging Markets – Broad Market High Yield 0.09 EMHY 68.37 EMHY 51.08
255 Commodities: Agriculture Corn 0.08 CORN 52.93 CORN 76.00
256 Equity: Global – Small Cap 0.08 SMCP 64.59 SMCP 58.23
257 Equity: Global Coal 0.08 KOL 79.04 KOL 77.31
258 Equity: India Consumer Cyclicals 0.08 INCO 66.02 INCO 61.38
259 Equity: U.S. Construction & Engineering 0.08 PKB 80.49 PKB 71.43
260 Equity: U.S. Media & Publishing 0.08 PBS 82.64 PBS 73.51
261 Fixed Income: Emerging Markets – Corporate 0.08 CEMB 64.29 CEMB 44.18
262 Fixed Income: Global – Sovereign Inflation-Protected 0.08 ILB 59.91 ILB 33.37
263 Fixed Income: U.S. – Corporate 0.08 FCOR 69.24 FCOR 58.55
264 Fixed Income: U.S. – Corporate Investment Grade Floating Rate 0.08 FLTR 80.39 FLTR 56.64
265 Currency: Chinese Renminbi 0.07 CYB 73.62 CYB 64.56
266 Equity: Africa – Total Market 0.07 AFK 63.29 AFK 46.50
267 Equity: Argentina – Total Market 0.07 ARGT 63.31 ARGT 65.37
268 Equity: Austria – Total Market 0.07 EWO 85.58 EWO 77.70
269 Equity: China Consumer Cyclicals 0.07 CHIQ 74.61 CHIQ 58.37
270 Equity: Developed Europe Real Estate 0.07 IFEU 83.08 IFEU 64.15
271 Equity: Developed Markets Real Estate 0.07 FFR 67.35 FFR 56.04
272 Equity: Emerging Markets Infrastructure 0.07 PXR 59.97 EMIF 56.28
273 Equity: Global – Extended Market Growth 0.07 WBIA 67.00 WBIA 65.16
274 Equity: Global – Extended Market Value 0.07 WBIB 66.29 WBIB 64.16
275 Equity: Global – Total Market Value 0.07 GVAL 63.10 GVAL 54.88
276 Equity: North America Communications Equipment 0.07 IGN 86.64 IGN 79.61
277 Fixed Income: Global – Broad Market Investment Grade Short-Term 0.07 LDUR 68.19 LDUR 56.15
278 Commodities: Agriculture Sugar 0.06 SGG 75.66 SGG 89.75
279 Equity: Global – Large Cap Growth 0.06 WBIE 67.35 WBIE 65.74
280 Equity: Global – Large Cap Value 0.06 WBIF 66.15 WBIF 63.80
281 Equity: Global Oil & Gas 0.06 FRAK 78.69 FRAK 67.77
282 Equity: Russia – Small Cap 0.06 RSXJ 62.50 RSXJ 56.44
283 Fixed Income: U.S. – Broad Market High Yield Short-Term 0.06 PGHY 60.52 PGHY 49.47
284 Fixed Income: U.S. – Municipals VRDO Floating Rate 0.06 PVI 83.82 PVI 59.32
285 Commodities: Agriculture Wheat 0.05 WEAT 49.57 WEAT 69.23
286 Commodities: Industrial Metals Copper 0.05 JJC 75.38 JJC 80.37
287 Currency: Basket – Emerging Markets 0.05 CEW 71.15 CEW 56.79
288 Equity: Denmark – Total Market 0.05 EDEN 86.62 EDEN 83.93
289 Equity: Global Ex-U.S. Health Care 0.05 IRY 74.99 IRY 65.99
290 Equity: Global Ex-U.S. Utilities 0.05 IPU 82.96 IPU 63.49
291 Equity: Global Shipping 0.05 SEA 72.67 SEA 68.63
292 Equity: Qatar – Total Market 0.05 QAT 72.06 QAT 44.81
293 Fixed Income: China – Broad Market Intermediate 0.05 DSUM 64.87 DSUM 35.21
294 Currency: Basket – Global Ex-US 0.04 UDN 75.19 UDN 75.32
295 Equity: Australia – High Dividend Yield 0.04 AUSE 75.56 AUSE 49.56
296 Equity: China Real Estate 0.04 TAO 73.37 TAO 75.06
297 Equity: Global Ex-U.S. Energy 0.04 IPW 81.66 IPW 69.07
298 Equity: Japan Real Estate 0.04 DXJR 76.98 DXJR 71.87
299 Equity: Nordic – Total Market 0.04 GXF 71.12 GXF 63.71
300 Equity: United Arab Emirates – Total Market 0.04 UAE 67.73 UAE 42.81
301 Fixed Income: Global – Broad Market Intermediate 0.04 DI 57.49 DI 36.69
302 Fixed Income: U.S. – Broad Market Investment Grade Ultra-Short Term 0.04 ULST 69.26 ULST 47.97
303 Fixed Income: U.S. Government Agency MBS Intermediate 0.04 MBSD 71.89 MBSD 58.12
304 Equity: Canada Oil & Gas Exploration & Production 0.03 ENY 78.39 ENY 71.36
305 Equity: Emerging Europe – Total Market 0.03 GUR 65.42 GUR 57.80
306 Equity: Emerging Middle East & Africa – Total Market 0.03 GAF 78.79 GAF 54.93
307 Equity: Finland – Total Market 0.03 EFNL 81.53 EFNL 68.03
308 Equity: Frontier Middle East & Africa – Total Market 0.03 GULF 68.27 GULF 49.74
309 Equity: Global Ex-U.S. – Large Cap 0.03 RTR 71.86 RTR 63.18
310 Equity: Global Ex-U.S. – Total Market Value 0.03 IVAL 65.64 IVAL 46.26
311 Equity: Global Ex-U.S. Consumer Non-cyclicals 0.03 IPS 78.79 IPS 60.55
312 Equity: Global Ex-U.S. Telecommunications 0.03 IST 71.45 IST 61.43
313 Equity: Global Oil & Gas Exploration & Production 0.03 FILL 76.61 FILL 53.74
314 Equity: Portugal – Total Market 0.03 PGAL 77.67 PGAL 56.09
315 Equity: U.K. – Small Cap 0.03 EWUS 80.76 EWUS 64.02
316 Fixed Income: Asia-Pacific – Broad Market Intermediate 0.03 ALD 60.83 ALD 39.02
317 Commodities: Agriculture Cocoa 0.02 NIB 75.96 NIB 75.45
318 Commodities: Agriculture Cotton 0.02 BAL 76.08 BAL 83.77
319 Commodities: Agriculture Livestock 0.02 COW 72.62 COW 70.81
320 Currency: Brazilian Real 0.02 BZF 77.94 BZF 68.46
321 Currency: Swedish Krona 0.02 FXS 78.39 FXS 73.49
322 Equity: Asia-Pacific – Large Cap 0.02 ADRA 77.33 ADRA 60.43
323 Equity: China Financials 0.02 CHIX 75.54 CHIX 59.90
324 Equity: Egypt – Total Market 0.02 EGPT 60.27 EGPT 47.73
325 Equity: Emerging Markets Internet 0.02 EMQQ 63.62 EMQQ 61.02
326 Equity: Germany – Small Cap 0.02 EWGS 81.23 EWGS 65.87
327 Equity: Global Autos 0.02 CARZ 64.96 CARZ 58.56
328 Equity: Global Casinos / Gaming 0.02 BJK 65.53 BJK 58.73
329 Equity: Nigeria – Total Market 0.02 NGE 60.46 NGE 50.26
330 Fixed Income: U.S. Government Treasury Floating Rate 0.02 TFLO 88.91 TFLO 75.36
331 Commodities: Agriculture Softs 0.01 GRWN 70.06 GRWN 64.66
332 Commodities: Agriculture Soybeans 0.01 SOYB 48.13 SOYB 67.31
333 Commodities: Broad Market Metals 0.01 RJZ 53.44 RJZ 54.77
334 Commodities: Industrial Metals Nickel 0.01 NINI 70.77 NINI 64.14
335 Currency: Indian Rupee 0.01 ICN 68.44 ICN 56.52
336 Equity: Australia – Small Cap 0.01 KROO 67.94 KROO 42.62
337 Equity: Brazil – Mid Cap 0.01 BRAZ 57.30 BRAZ 45.55
338 Equity: Brazil Consumer Cyclicals 0.01 BRAQ 50.87 BRAQ 41.21
339 Equity: Canada – Small Cap 0.01 CNDA 73.14 CNDA 61.46
340 Equity: Global Construction & Engineering 0.01 FLM 63.58 FLM 58.55
341 Equity: Global Ex-U.S. – Total Market Growth 0.01 AADR 55.47 AADR 44.39
342 Equity: Global Ex-U.S. Basic Materials 0.01 IRV 69.97 IRV 46.85
343 Equity: Global Ex-U.S. Consumer Cyclicals 0.01 IPD 68.02 IPD 53.52
344 Equity: Global Ex-U.S. Financials 0.01 IPF 69.55 IPF 51.77
345 Equity: Global Ex-U.S. Industrials 0.01 IPN 69.71 IPN 60.60
346 Equity: Global Ex-U.S. Technology 0.01 IPK 63.46 IPK 46.96
347 Equity: Global Internet 0.01 ARKW 67.46 ARKW 61.48
348 Equity: Global Phones & Handheld Devices 0.01 FONE 54.53 FONE 39.79
349 Equity: Indonesia – Small Cap 0.01 IDXJ 49.74 IDXJ 34.39
350 Equity: Japan Financials 0.01 DXJF 66.97 DXJF 59.61
351 Equity: Japan Health Care 0.01 DXJH 73.54 DXJH 62.65
352 Equity: Southeast Asia – Total Market 0.01 ASEA 63.87 ASEA 53.08
353 Fixed Income: Emerging Markets – Sovereign Short-Term 0.01 EMSH 52.38 EMSH 29.98
354 Fixed Income: Germany – Sovereign Investment Grade Intermediate 0.01 BUNL 65.46 BUNL 42.40
355 Fixed Income: Global – Corporate Intermediate 0.01 CRDT 58.70 CRDT 39.49
356 Fixed Income: U.S. – Municipals Intermediate 0.01 GMMB 62.31 GMMB 41.23
357 Commodities: Energy Carbon Credits 0.00 GRN 50.02 GRN 40.21
358 Commodities: Energy Heating Oil 0.00 UHN 75.49 UHN 64.67
359 Commodities: Industrial Metals Aluminum 0.00 FOIL 69.88 FOIL 61.83
360 Commodities: Industrial Metals Lead 0.00 LEDD 71.67 LEDD 61.54
361 Commodities: Industrial Metals Tin 0.00 JJT 64.02 JJT 50.86
362 Currency: Singapore Dollar 0.00 FXSG 66.90 FXSG 49.30
363 Equity: China Basic Materials 0.00 CHIM 56.36 CHIM 43.80
364 Equity: China Energy 0.00 CHIE 67.65 CHIE 49.69
365 Equity: China Industrials 0.00 CHII 50.68 CHII 37.21
366 Equity: Emerging Markets Real Estate 0.00 EMRE 63.09 EMRE 56.70
367 Equity: Japan Industrials 0.00 DXJC 69.70 DXJC 57.32
368 Equity: Japan Technology 0.00 DXJT 60.91 DXJT 55.96
369 Fixed Income: Germany – Sovereign Investment Grade 0.00 GGOV 57.45 GGOV 31.82
370 Fixed Income: Japan – Sovereign Investment Grade Intermediate 0.00 JGBL 65.60 JGBL 45.74

About

I am interested in building investing systems, and this blog contains my research and analysis on this topic. I previously worked as an analyst at Bridgewater Associates, a hedge fund that utilizes a systematic, global macro investing style.

6 comments on “The Optimal ETFs For Each Market Segment

  1. Hey Kevin, this is a great list. I was testing my trading strategies with different ETFs and this helps a lot.

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  4. That is truly a great list, a goldmine. Thanks for making the effort and for sharing

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