5 Best ETFs Under $20

ETFs automatically come with an assumption of high prices. After all, if you buy a basket of stocks isn’t it automatically going to be costly to buy? As it turns out, you can buy a bunch of exchange-traded funds pretty cheaply. Below, we cover five of the best ETFs under $20 per share.

From precious metals to the energy sector, we cover a handful of exchange-traded funds that might pique your interest if you’re looking for a relatively inexpensive fund to buy.

ProShares Bitcoin Strategy ETF (BITO)

Launched in late 2021, BITO trades in futures contracts, with the aim of closely mimicking the price of these derivatives.

The ETF originally failed to issue dividends but that has changed and is potentially a selling point to prospective new buyers.

According to the Investment Company Act of 1940, ETFs that register a profit within a year must distribute these profits to investors as dividends (or face substantial taxes). This requirement led to the ProShares Bitcoin Strategy ETF’s sudden dividend distributions, triggering a skyrocketing yield from 0% to 20% within a few months.

The payout isn’t without its risks, though. Its sustainability depends on Bitcoin’s price rising – and the continuous rolling of futures contracts introduces an element of decay, which can impact the fund’s performance.

ProShares has noted that BITO is the first US bitcoin-linked ETF, meaning no wallet or crypto exchange is neeed to gain bitcoin exposure. 

Hoya Capital High Dividend Yield ETF (RIET)

The Hoya Capital High Dividend Yield ETF is a high-yield REIT with exposure to residential, healthcare, retail and data centers.

The past few years have been challenging for REITs as monetary policy has tightened considerably, meaning the future prospects for HOYA are largely dependent on Federal Reserve policy actions – if it keeps hiking, property values will likely slide backwards.

The REIT does include a mix of “Dividend Champions,” large-cap REITs, mid-cap REITs, small-cap REITs, and preferred stocks, which positions it well to capitalize on a Federal Reserve policy U-turn to lower rates.

This isn’t a play to consider, though, until Chairman Jerome Powell and his FOMC committee signal that interest rates have either plateaued or will decline, but it’s certainly one to keep on your watchlist radar.

ETFMG Prime Junior Silver Miners ETF (SILJ)

SILJ offers direct exposure to the silver mining exploration and production industry. Notably, it is a “first-to-market product” and the only ETF targeting small-cap silver miners.

Silver has always enticed precious metals enthusiasts, not least because it has vast industrial applications – such as in solar panels, medical devices, and smartphones. 

The vast range of uses for silver means persistent demand for the metal, which naturally acts as a support underneath the price to which SILJ is tethered.

SILJ tracks the Prime Junior Silver Miners & Explorers Index, a benchmark which in turn follows the crème de la crème of public, small-cap companies in the silver mining exploration and production realm.

With stalwarts like Pan American Silver Corp. (PAAS) and First Majestic Silver Corp. (AG) leading the charge, the ETF is anchored to industry leaders.

It’s worth highlighting that while silver prices have been on an upward trajectory, increasing by 23% over the past year, the ETFMG Prime Junior Silver Miners ETF is poised for a breakout, reminiscent of its stellar performance during the aftermath of the 2020 liquidity crunch, from whence it tripled in value within a year. Its historical resilience and adaptability underscores SILJ’s capacity to outshine even in a volatile market.

The long-term horizon looks even brighter. While past performance has seen some fluctuations, the current market dynamics and increasing industrial demand for silver and its inherent value as a precious metal set the stage for SILJ to return to an upward trajectory.

The minor setbacks of the past are dwarfed by the ETF’s immense promise, especially when considering the broader macroeconomic landscape.

Harbor Long-Term Growers ETF (WINN)

Despite the challenging market headwinds facing Harbor Long-Term Growers ETF since it launched, the future may look brighter. 

This actively managed fund specializes in US and foreign equities with strong long-term growth potential.

WINN’s investment philosophy prioritizes firms with sturdy cash flow generation, reinvestment opportunities, and resilient balance sheets.

For instance, WINN’s portfolio includes powerhouse names like Apple and Microsoft, which together account for over 21% of the fund’s weight.

Additionally, the fund’s exposure to high-quality names like LVMH Moet Hennessy – Louis Vuitton and NVIDIA, a semiconductor giant that has seen significant gains amid the AI revolution, further solidifies its likelihood for capital appreciation.

However, its strategy is not just limited to US equities because, if necessary, it can allocate up to 20% of its nearly $183 million total net assets to foreign stocks – including those from emerging markets – providing a diversified, global exposure. 

First Trust Global Wind Energy ETF (FAN)

By tracking the ISE Clean Edge Global Wind Energy Index, FAN offers exposure to companies at the forefront of wind energy production, development, and utilization.

First Trust Global Wind Energy ETF is a top choice for those eager to enter the renewable energy arena.

Moreover, as the global narrative pivots towards sustainable and cleaner alternatives, FAN accentuates wind energy’s escalating importance and potential in the energy landscape.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.