Using the Weiss Ratings ETF Screener, we drilled down through all 175 BUY rated ETFs to find the top five with the highest long-term performance. These ETFs have much higher than the 17.74 percent five-year industry average return, and also pay a dividend above the average of 2.06 percent.
ETF Name |
Ticker |
5-Year Total Return % |
Weiss Investment Rating |
| PowerShares High Yield Equity Dividend Achievers™ Portfolio | PEY | 128.73 | B |
| Vanguard Industrials Index Fund ETF Shares | VIS | 120.48 | B- |
| Vanguard Small-Cap Value Index Fund ETF Shares | VBR | 119.87 | B- |
| Vanguard Mid-Cap Value Index Fund ETF Shares | VOE | 119.62 | B- |
| iShares Morningstar Large-Cap ETF | JKD | 117.80 | B- |
PowerShares High Yield Equity Dividend Achievers™ Portfolio invests at least 90 percent of its assets in common stock of companies that comprise the NASDAQ US Dividend Achievers TM 50 Index. The fund achieved 128.7 percent in total return over the last five years, pays a 3.2 percent dividend, and has an expense ratio of 0.54 percent. It is the highest rated ETF on the list, with a B investment rating.
Vanguard Industrials Index Fund ETF Shares seeks to track performance of the MSCI US Investable Market Index which is made up of various size U.S. companies within the industrials sector. The fund has a 120.5 percent five-year return, coupled with a 2.6 percent dividend, and a well below industry average expense ratio of 0.1 percent. It currently holds a B- investment rating.
Vanguard Small-Cap Value Index Fund ETF Shares focuses on investing in small-capitalization stocks and aims to track the CRSP US Small Cap Value Index, a diversified index of small U.S. companies. The fund has a very low expense ratio of 0.08 percent, pays a 2.32 percent dividend and offers a 119.9 percent five-year return. It is at the bottom of the BUY range with a B- investment rating from Weiss, and is the largest of the five funds.
Vanguard Mid-Cap Value Index Fund ETF Shares invests in mid-size U.S. companies tracking performance of the CRSP US Mid Cap Value Index. The fund has a 0.08 percent expense ratio, pays a 2.65 percent dividend, and offers a 119.6 percent five-year return. It currently holds a B- investment rating.
iShares Morningstar Large-Cap ETF tracks the Morningstar® Large Core IndexSM index, consisting of large U.S. equities. This B- rated fund pays a 2.27 percent dividend and has a 117.8 percent five-year return. The expense ratio of 0.2 percent is also very low when compared to the industry average of 0.59 percent and is the smallest of the five with $642.2 million in total assets.
Although ETFs can be traded frequently, just like stocks, these five offer stable long-term returns averaging 38.3 percent over the last three years, and 121.3 percent over the last five. Any one of them can be an option for a long-term investment.
