Best BlackRock ETFs
Best BlackRock ETFs
BlackRock Inc. (ticker: BLK) has made a wide range of quality assets available for investors since 1988. While you can buy individual stocks and bonds, you can also choose from hundreds of BlackRock exchange-traded funds, or ETFs.
It might seem tough to pick from hundreds of BlackRock ETFs, but an easy place to start is the expense ratio. This ratio reflects the costs that a fund incurs for management and other fees. Investors pay the expenses just by holding onto their shares. Naturally, a lower expense ratio allows you to keep more of your profits.
The BlackRock ETFs on this list, trading under the iShares brand, have delivered strong long-term returns over many years. Although some of them are down year to date due to current market conditions, long-term trends are positive for these funds:
BlackRock ETF
iShares Semiconductor ETF (SOXX)
iShares Core MSCI Total International Stock ETF (IXUS)
iShares Expanded Tech Sector ETF (IGM)
iShares S&P 100 ETF (OEF)
iShares Core S&P Total U.S. Stock Market ETF (ITOT)
It might seem tough to pick from hundreds of BlackRock ETFs, but an easy place to start is the expense ratio. This ratio reflects the costs that a fund incurs for management and other fees. Investors pay the expenses just by holding onto their shares. Naturally, a lower expense ratio allows you to keep more of your profits.
The BlackRock ETFs on this list, trading under the iShares brand, have delivered strong long-term returns over many years. Although some of them are down year to date due to current market conditions, long-term trends are positive for these funds:
BlackRock ETF
iShares Semiconductor ETF (SOXX)
iShares Core MSCI Total International Stock ETF (IXUS)
iShares Expanded Tech Sector ETF (IGM)
iShares S&P 100 ETF (OEF)
iShares Core S&P Total U.S. Stock Market ETF (ITOT)
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iShares Semiconductor ETF (SOXX)
The iShares Semiconductor ETF gives investors exposure to companies in the semiconductor industry. While semiconductor stocks have a tendency to outperform the stock market, these stocks have delivered exceptional returns in recent years due to the promise of artificial intelligence and AI chips.
The artificial intelligence boom is still in its early innings, and SOXX gives investors outsized exposure to that industry. Large language models are getting more advanced, but that's not where the catalysts stop. AI chips are also the core building blocks for high-potential trends like self-driving cars and humanoid robots.
The fund's top three positions are Broadcom Inc. (AVGO), Nvidia and Qualcomm Inc. (QCOM). They make up approximately one-quarter of the fund's total assets. SOXX has a 0.35% expense ratio and spreads its capital across 35 holdings.
Although the semiconductor ETF is down year to date, it has crushed the stock market for several years. The fund has delivered a 21.6% average annual return over the past decade. Investors who are bullish on AI and can handle some volatility may want to give this fund a closer look.
The iShares Semiconductor ETF gives investors exposure to companies in the semiconductor industry. While semiconductor stocks have a tendency to outperform the stock market, these stocks have delivered exceptional returns in recent years due to the promise of artificial intelligence and AI chips.
The artificial intelligence boom is still in its early innings, and SOXX gives investors outsized exposure to that industry. Large language models are getting more advanced, but that's not where the catalysts stop. AI chips are also the core building blocks for high-potential trends like self-driving cars and humanoid robots.
The fund's top three positions are Broadcom Inc. (AVGO), Nvidia and Qualcomm Inc. (QCOM). They make up approximately one-quarter of the fund's total assets. SOXX has a 0.35% expense ratio and spreads its capital across 35 holdings.
Although the semiconductor ETF is down year to date, it has crushed the stock market for several years. The fund has delivered a 21.6% average annual return over the past decade. Investors who are bullish on AI and can handle some volatility may want to give this fund a closer look.
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iShares Core MSCI Total International Stock ETF (IXUS)
The iShares Core MSCI Total International Stock ETF holds a basket of international stocks and caters to investors who want to reduce their concentration in U.S. stocks. The fund hasn't outperformed the S&P 500 in the long run. It has produced an annualized 5.7% return over the past decade. However, its 13.6% annualized return over the past five years (by net asset value) is a strong showing.
The main appeal for IXUS is that it reduces risk in U.S. markets. Tariffs have taken a toll on many U.S. stocks, but IXUS remains up by roughly 9% year to date. Many popular benchmarks like the S&P 500 and the Nasdaq have entered corrections territory and are suppressed in 2025.
When U.S. stocks recover, they are likely to outperform IXUS. However, not every retiree or investor who is considering retirement wants to wait that long. IXUS has a reasonable 0.07% expense ratio and spreads its capital across about 4,300 holdings. It also has a trailing-12-month yield of about 3.2%.
Its top three positions are Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Tencent Holdings Ltd. (OTC: TCEHY) and Alibaba Group Holding Ltd. (BABA). These three stocks make up only about 4% of its total assets, making IXUS well diversified compared to other ETFs.
The iShares Core MSCI Total International Stock ETF holds a basket of international stocks and caters to investors who want to reduce their concentration in U.S. stocks. The fund hasn't outperformed the S&P 500 in the long run. It has produced an annualized 5.7% return over the past decade. However, its 13.6% annualized return over the past five years (by net asset value) is a strong showing.
The main appeal for IXUS is that it reduces risk in U.S. markets. Tariffs have taken a toll on many U.S. stocks, but IXUS remains up by roughly 9% year to date. Many popular benchmarks like the S&P 500 and the Nasdaq have entered corrections territory and are suppressed in 2025.
When U.S. stocks recover, they are likely to outperform IXUS. However, not every retiree or investor who is considering retirement wants to wait that long. IXUS has a reasonable 0.07% expense ratio and spreads its capital across about 4,300 holdings. It also has a trailing-12-month yield of about 3.2%.
Its top three positions are Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Tencent Holdings Ltd. (OTC: TCEHY) and Alibaba Group Holding Ltd. (BABA). These three stocks make up only about 4% of its total assets, making IXUS well diversified compared to other ETFs.
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iShares Expanded Tech Sector ETF (IGM)
Tech hasn't been the best trade to start the year, and this fund certainly hasn't delivered gains for investors who bought at the start of the year. However, most investors buy iShares Expanded Tech Sector ETF shares because of the long-term gains. The fund has an annualized 19.2% return over the past decade. More recently, it has an annualized 15.7% return over the past three years. Those returns comfortably cover the fund's 0.41% expense ratio.
It shouldn't surprise investors to see that the Magnificent Seven stocks are firmly in the driver's seat of this fund's long-term returns. The top seven positions include Mag 7 stocks and Broadcom (otherwise known as the BATMMAAN stocks), and they make up 47% of IGM's total assets. Netflix Inc. (NFLX), Salesforce Inc. (CRM) and Cisco Systems Inc. (CSCO) round out the top 10.
The tech sector has seen plenty of growth over the decades, and scaling innovative technology with strong demand from consumers and businesses has helped this sector thrive. Artificial intelligence is a big catalyst that can deliver strong returns for the fund once the current market turbulence subsides. So, this fund may be suitable for investors who have lengthy time horizons and aren't afraid of some volatility.
Tech hasn't been the best trade to start the year, and this fund certainly hasn't delivered gains for investors who bought at the start of the year. However, most investors buy iShares Expanded Tech Sector ETF shares because of the long-term gains. The fund has an annualized 19.2% return over the past decade. More recently, it has an annualized 15.7% return over the past three years. Those returns comfortably cover the fund's 0.41% expense ratio.
It shouldn't surprise investors to see that the Magnificent Seven stocks are firmly in the driver's seat of this fund's long-term returns. The top seven positions include Mag 7 stocks and Broadcom (otherwise known as the BATMMAAN stocks), and they make up 47% of IGM's total assets. Netflix Inc. (NFLX), Salesforce Inc. (CRM) and Cisco Systems Inc. (CSCO) round out the top 10.
The tech sector has seen plenty of growth over the decades, and scaling innovative technology with strong demand from consumers and businesses has helped this sector thrive. Artificial intelligence is a big catalyst that can deliver strong returns for the fund once the current market turbulence subsides. So, this fund may be suitable for investors who have lengthy time horizons and aren't afraid of some volatility.
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iShares S&P 100 ETF (OEF)
The S&P 500 is filled with publicly traded corporations that have achieved certain milestones, such as profitability and a big market capitalization. However, some stocks in the S&P 500 fall out of favor and drag the benchmark lower.
The famed index is filled with many relatively unproductive stocks right now, such as Nike Inc. (NKE), Intel Corp. (INTC) and Boeing Co. (BA). The S&P 500 also contains plenty of defensive stocks that may not appeal to investors who want to maximize their long-term returns.
These dynamics explain why the iShares S&P 100 ETF is gaining momentum. Instead of giving investors exposure to all 500 stocks in the popular index, OEF only offers exposure to the top 100 holdings by market cap. Tech stocks make up a large portion of the fund's total assets, with Apple, Nvidia and Microsoft representing more than a quarter of the fund's capital.
OEF has a 0.2% expense ratio and has delivered an annualized 13.6% return over the past decade. The fund has outperformed the S&P 500 over the past five years.
The S&P 500 is filled with publicly traded corporations that have achieved certain milestones, such as profitability and a big market capitalization. However, some stocks in the S&P 500 fall out of favor and drag the benchmark lower.
The famed index is filled with many relatively unproductive stocks right now, such as Nike Inc. (NKE), Intel Corp. (INTC) and Boeing Co. (BA). The S&P 500 also contains plenty of defensive stocks that may not appeal to investors who want to maximize their long-term returns.
These dynamics explain why the iShares S&P 100 ETF is gaining momentum. Instead of giving investors exposure to all 500 stocks in the popular index, OEF only offers exposure to the top 100 holdings by market cap. Tech stocks make up a large portion of the fund's total assets, with Apple, Nvidia and Microsoft representing more than a quarter of the fund's capital.
OEF has a 0.2% expense ratio and has delivered an annualized 13.6% return over the past decade. The fund has outperformed the S&P 500 over the past five years.
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iShares Core S&P Total U.S. Stock Market ETF (ITOT)
The iShares Core S&P Total U.S. Stock Market ETF takes the opposite approach of OEF. Instead of limiting investors to 500 stocks, this fund offers exposure to more than 2,500 holdings. The Mag 7 stocks are still overrepresented in this fund, but their influence isn't as dramatic compared to other ETFs.
Apple, Nvidia and Microsoft are the fund's top three holdings, making up about 17% of its total assets. ITOT comes in with a 0.03% expense ratio while delivering a 12% annualized return over the past decade. It also has a trailing yield of 1.2%.
ITOT allocates about 30% of its capital to the information technology sector, but three other sectors each make up more than 10% of its total assets: financials, health care and consumer discretionary. It's more diversified than most BlackRock ETFs. While more heavily tech-focused ETFs will outperform it in bull markets, ITOT is less volatile and doesn't have as far to fall during broad market corrections.
The iShares Core S&P Total U.S. Stock Market ETF takes the opposite approach of OEF. Instead of limiting investors to 500 stocks, this fund offers exposure to more than 2,500 holdings. The Mag 7 stocks are still overrepresented in this fund, but their influence isn't as dramatic compared to other ETFs.
Apple, Nvidia and Microsoft are the fund's top three holdings, making up about 17% of its total assets. ITOT comes in with a 0.03% expense ratio while delivering a 12% annualized return over the past decade. It also has a trailing yield of 1.2%.
ITOT allocates about 30% of its capital to the information technology sector, but three other sectors each make up more than 10% of its total assets: financials, health care and consumer discretionary. It's more diversified than most BlackRock ETFs. While more heavily tech-focused ETFs will outperform it in bull markets, ITOT is less volatile and doesn't have as far to fall during broad market corrections.