Best Commission-Free Etfs To Trade On Td Ameritrade

Exchange-Traded Funds (ETFs) are baskets of securities that trade intraday like individual stocks on an exchange, and are typically designed to track an underlying index. ETFs can be used to help diversify your portfolio. TD Ameritrade account holders can enjoy commission-free trading in over 100 ETFs, including a number of low-cost Vanguard funds, and many other popular ETFs. Some of the commission-free ETFs on TD Ameritrade include iShares Core S&P 500 ETF, Vanguard Total Stock Market ETF, and Vanguard FTSE Developed Markets ETF.

Large-cap stock ETFs

Large-cap ETFs typically bundle together blue-chip stocks or even an entire index, providing steady, sizeable returns. They are considered a safe, long-term investment. Here are some large-cap stock ETFs that are commission-free on TD Ameritrade:

• SPDR Portfolio S&P 500 High Dividend ETF: This ETF tracks the S&P 500 High Dividend index, which includes the 80 highest-yielding stocks in the S&P 500. It has a high dividend yield of 3.8% compared to 1.8% for S&P 500 ETFs.
• Vanguard S&P 500 ETF: This ETF invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies. Vanguard funds are popular due to their industry-leading returns and low expense ratios.
• Vanguard Russell 1000 Growth ETF: This ETF seeks to track the performance of the Russell 1000 Growth Index, which is designed to measure the performance of large-capitalization growth stocks in the United States.
• SPDR Portfolio Total Stock Market ETF: This ETF provides exposure to most stocks on domestic exchanges that are incorporated or headquartered in the United States. It tracks the SSGA Total Stock Market Index, which generally includes companies with a minimum market cap of $100 million. It has a low expense ratio of 0.03%.
• Vanguard Mega Cap ETF (MGC): This ETF contains around 250 of the biggest companies in the USA, from Amazon to Apple.
• Vanguard Total Stock Market ETF (VTI): This ETF tracks the MSCI U.S. Broad Market Index, which represents over 99% of the total market capitalization of all U.S. common stocks. It has a high correlation with the S&P 500 Index and a low expense ratio of 0.05%.

Mid-cap ETFs

When it comes to mid-cap ETFs, TD Ameritrade account holders can enjoy commission-free trading in over 100 ETFs, including some low-cost Vanguard funds and other popular ETFs.

Vanguard Mid-Cap Growth ETF (VOT)replicate the performance of the CRSP US Mid Cap Growth Index, which measures the returns of mid-cap growth stocks in the US. It is a good option for those seeking higher potential returns than an index fund while taking on slightly more risk.

IShares Core S&P Mid-Cap ETF (IJF): The IJF ETF aims to replicate the performance of an index composed of mid-capitalization US equities. It is a good option for those seeking exposure to mid-cap companies, which are established but still have exciting growth potential.

Vanguard Mid-Cap ETF (VO): This ETF tracks the CRSP US Mid Cap Index, which measures the performance of mid-capitalization stocks. It provides exposure to a diverse range of mid-cap companies, balancing risk and reward.

Schwab U.S. Mid-Cap ETF (SCHM): The SCHM ETF aims to replicate the performance of the Dow Jones U.S. Mid-Cap Total Stock Market Index as closely as possible, before fees and expenses. It focuses on mid-cap companies, which are typically well-established and have a market capitalization ranging from $2 billion to $10 billion.

Remember to do your own research and consult with a financial advisor before making any investment decisions.

Small-cap stock ETFs

When considering which commission-free ETFs to invest in on TD Ameritrade, it's important to remember that these products can be bought and sold without traditional brokerage commissions for investors with certain accounts. With that in mind, here is some detailed information about Small-Cap Stock ETFs:

The SPDR Portfolio Small Cap ETF is a great option for investors looking to invest in a broad portfolio of small-cap stocks. This ETF tracks the SSGA Small Cap Index, which includes companies that make up only about 10% of the stock market's value. This means that you are getting exposure to smaller companies that may have more room to grow compared to larger, more established companies. The fund has nearly 2,100 holdings, giving you extensive diversification within the small-cap space. Keep in mind that this ETF has a slightly lower exposure to micro-caps compared to the Russell 2000 index, as it only includes companies with a minimum market capitalization of $100 million.

Another option to consider is the SPDR Portfolio Mid Cap ETF, which tracks the S&P 1000 index. While it carries the "mid-cap" label, this fund actually tilts more towards smaller stocks, with an average market cap of $3.75 billion compared to the Russell Mid Cap Index's average of $12.6 billion. This ETF can provide exposure to both mid-cap and small-cap stocks, so investors should be mindful of their allocations to other small-cap funds when using this ETF.

For investors looking for a more targeted approach, the iShares Core S&P Small-Cap ETF is also available on TD Ameritrade's commission-free list. This ETF provides exposure to small-cap blend equities, which are a mix of small-cap growth and value stocks. While specific holdings information was not readily available, this ETF is a great way to gain access to small-cap stocks that may have the potential for higher growth compared to their large-cap counterparts.

When considering small-cap stock ETFs, it's important to keep in mind that these investments can come with higher risks due to the nature of smaller companies. However, they also offer the potential for higher returns and can provide valuable diversification to your portfolio. Remember to assess your risk tolerance and investment goals before making any investment decisions.

International stock ETFs

When it comes to international stock ETFs, there are a few options available for TD Ameritrade commission-free trading. Here are some detailed suggestions:

Vanguard FTSE Developed Markets ETF (Ticker: VEA):

This ETF provides exposure to a diverse group of stocks from major markets in Europe, Canada, and the Pacific region. It includes large-, mid-, and small-cap companies, offering a well-rounded approach to investing in international markets.

Vanguard Total International Stock ETF ( Ticker: VXUS):

This ETF aims to track the performance of the FTSE Global All Cap ex US Index, which measures the returns of stocks from companies located outside the United States. It provides broad diversification across developed and emerging international markets.

SPDR MSCI EAFE Fossil Fuel Free ETF ( Ticker: EFAX):

This ETF is designed for climate-conscious investors who want to avoid exposure to companies owning fossil fuel reserves. It offers access to international equities while being mindful of environmental considerations.

Vanguard Emerging Markets ETF ( Ticker: VWO):

This ETF invests in stocks of companies located in emerging markets, such as China, Brazil, Taiwan, and South Africa. It provides exposure to high-growth potential markets and diversifies your portfolio beyond developed nations.

IShares Core U.S. Aggregate Bond ETF ( Ticker: AGG):

While not strictly an international stock ETF, this fund tracks an index composed of the total U.S. investment-grade bond market. It provides exposure to U.S. government and corporate bonds, offering a more stable component to your portfolio.

Remember to assess your investment goals, risk tolerance, and conduct your own research before making any investment decisions.

Fixed income ETFs

TD Ameritrade offers a range of commission-free ETFs for investors with certain accounts. One category of ETFs available for commission-free trading is Fixed Income ETFs. Here are some options to consider:

IShares Core U.S. Aggregate Bond ETF: This ETF provides exposure to a broad range of U.S. investment-grade bonds, including government, corporate, and mortgage-backed securities. It is a diverse and relatively low-risk option for investors seeking stable income and diversification.

Vanguard Total Bond Market ETF: This ETF tracks a broad index of U.S. investment-grade bonds, including government, corporate, and mortgage-backed securities. It offers similar benefits to the iShares Core U.S. Aggregate Bond ETF but may have a slightly different mix of bond holdings.

IShares 20+ Year Treasury Bond ETF: This ETF focuses specifically on long-term U.S. Treasury bonds, which are backed by the full faith and credit of the U.S. government. These bonds have longer maturities, making them more sensitive to interest rate changes but also offering the potential for higher returns over time.

Vanguard Intermediate-Term Corporate Bond ETF: As the name suggests, this ETF invests in corporate bonds with intermediate maturities, typically between 5 and 10 years. These bonds offer a balance between the stability of short-term bonds and the higher yields of long-term bonds.

Vanguard Short-Term Corporate Bond ETF: This ETF focuses on short-term corporate bonds, which tend to have lower interest rate risk due to their shorter maturities. It may be suitable for more conservative investors who prioritize capital preservation and stable income.

When considering these or any other fixed-income ETFs, investors should assess their investment objectives, risk tolerance, and diversification needs. It is also important to remember that commission-free trading may be subject to certain account requirements and restrictions.

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