What is the best ETF to invest $3,000?

The best ETF to invest $3,000 depends on your investment goals, risk tolerance, and the asset class you prefer. Here are some top options to consider: 1. **Technology Select Sector SPDR Fund (XLK)**: - **Expense Ratio**: 0.09% - **Assets**: $115 billion - **Holdings**: Approximately 70 stocks, including Apple and Alphabet. - **Performance**: 11% year-to-date as of 2025, outperforming the S&P 500. - **Suitable for**: Investors seeking broad exposure to the tech sector with a low fee. 2. **Vanguard Financials ETF (VFH)**: - **Expense Ratio**: 0.09% - **Assets**: N/A - **Holdings**: More than 400 financial sector stocks. - **Performance**: 6.9% year-to-date as of 2025. - **Suitable for**: Investors looking for targeted exposure to the financial sector. 3. **iShares U.S. Aerospace & Defense ETF (ITA)**: - **Expense Ratio**: 0.38% - **Assets**: N/A - **Holdings**: A selection of companies across various market caps. - **Performance**: More than 35% year-to-date as of 2025. - **Suitable for**: Investors interested in the aerospace and defense industry. 4. **First Trust Nasdaq Technology Div ETF (TDIV)**: - **Expense Ratio**: 0.5% - **Assets**: $3.4 billion - **Holdings**: Dividend-paying tech stocks. - **Performance**: N/A - **Suitable for**: Investors seeking a target approach to tech with a dividend focus. 5. **Pacer Data and Digital Revolution ETF (TRFK)**: - **Expense Ratio**: 0.6% - **Assets**: $95 million - **Holdings**: Companies involved in data and digital transformation. - **Performance**: N/A - **Suitable for**: Investors interested in the data and digital sector. When choosing the best ETF, consider the following factors: - **Expense Ratio**: Lower fees mean more of your investment goes towards the underlying assets. - **Assets Under Management (AUM)**: Larger AUM can indicate better liquidity and lower price volatility. - **Holdings**: Look for ETFs that align with your investment goals and risk tolerance. - **Performance**: While past performance is not indicative of future results, it can give you an idea of how the ETF has performed in various market conditions. It's also important to consider your investment horizon, risk tolerance, and whether you prefer a passive or active investment strategy. Consulting with a financial advisor can help you make a more informed decision based on your individual circumstances.