We found 11 online brokers that are appropriate for Trading Average Etf Return.
ETFs (Exchange-Traded Funds) are popular among traders for their simplicity, diversification, and cost efficiency. But if you're asking, 'What kind of returns can I expect?' the answer isn't straightforward. Let's dive into the details and uncover how you can make the most of your ETF investments.
The average ETF return refers to the annual return an Exchange-Traded Fund (ETF) generates over a specific period, such as 1, 3, 5, or 10 years. This includes price changes and any dividends or interest payments reinvested back into the fund.
Broad market index ETFs, such as those tracking the S&P 500, have historically provided annualized returns of 7-10% over the long term. For example, in 2023, the S&P 500 returned approximately 11%. Predictions for 2025 estimate an average return of 8-10% under stable economic conditions. However, recent market volatility in 2024 indicates that these numbers might vary significantly depending on interest rates and geopolitical developments.
An example: If you invested $10,000 in an ETF tracking the S&P 500 at the start of 2023, by the end of the year, your investment would have grown to $11,100 with an 11% return.
Important Note: Past performance is not a guarantee of future results. Use these figures as benchmarks, not promises. Always consider market risks, especially during downturns.
ETFs are designed to meet different investor needs. Index ETFs, such as those tracking major indices, typically deliver steady returns of 7-10% annually. Bond ETFs focus on fixed-income securities and offer stable but lower returns of around 3-5%. For example, a U.S. Treasury Bond ETF yielded 4% in 2024.
Thematic ETFs, such as clean energy ETFs, have greater growth potential but carry higher risks. For instance, ARK Innovation ETF (ARKK) had a 2024 return of 25%, rebounding after a sharp decline in previous years. Predictions for 2025 suggest similar volatility but with an upside of up to 30% if economic growth continues.
International ETFs expose traders to global markets. For example, an ETF tracking the MSCI Emerging Markets Index returned 7% in 2023. Currency fluctuations and geopolitical risks remain important factors for traders to consider in 2025.
An example: If you invested $5,000 in ARKK at the start of 2024, it could be worth $6,250 by year-end with a 25% return.
ETFs offer diversification, but traders must consider trading costs. Every ETF trade incurs a commission. Excessive trading can reduce your overall returns due to fees. For example, trading an ETF with a 0.05% expense ratio but making 50 trades a year at $5 per trade would cost you $250 in fees annually.
$10,000 in an ETF with a 0.1% expense ratio, estimated year fees are at around. However, frequent trading may lead to additional expenses that could erode your returns.
Several factors impact ETF performance. The underlying assets, such as stocks, bonds, or commodities, directly determine returns. For instance, an energy ETF focused on oil prices may perform well during a price surge but could fall sharply if demand declines.
Economic conditions, including interest rates and inflation, play a significant role. In 2022, bond ETFs underperformed due to rising rates. Predictions for 2025 suggest that if rates stabilize, bond ETFs might recover with returns of 4-6% annually.
Expense ratios also matter. ETFs with lower ratios, such as 0.05%, typically provide higher net returns compared to those with ratios of 0.7%. For example, a $10,000 investment in a low-cost ETF could save you $65 annually in fees compared to a higher-cost ETF.
Market volatility can impact performance differently. A technology ETF might experience sharp swings in value during uncertain times. For instance, QQQ, tracking the Nasdaq-100, saw a 2023 return of 15%, but predictions for 2025 suggest greater fluctuations due to interest rate changes.
To invest in ETFs, determine the number of shares you can buy based on their current price and any transaction fees. For example, if an ETF costs $300 per share and you have $3,000 to invest, you can buy 10 shares.
ETFs often track benchmark indices. For instance, the Vanguard S&P 500 ETF (VOO) delivered a 2021 return of 15%, though it lagged the index slightly due to fees. Predictions for 2025 suggest VOO could achieve returns of 8-10%, depending on market conditions.
Traders should consider risks such as market and liquidity risks. For example, international ETFs can expose you to currency risks, especially if the dollar strengthens against foreign currencies, reducing potential gains.
When choosing an ETF for your trading portfolio, focus on key factors that align with your investment strategy.
Provider Reputation: Opt for ETFs from providers with a solid track record. Vanguard and BlackRock's iShares are well-known for offering low-cost ETFs. For example, the iShares Core S&P 500 ETF (IVV) by BlackRock has been popular among traders for its expense ratio of 0.03%, making it an attractive option for cost-conscious investors. Learn more about ETF regulation on the SEC website.
Expense Ratio: Lower fees mean better returns over time. The SPDR S&P 500 ETF (SPY), with its expense ratio of 0.09%, is one example of an ETF with minimal fees compared to actively managed funds that often charge above 1%. Find more details on expense ratios on Wikipedia.
Liquidity: Liquid ETFs, like SPDR S&P 500 ETF (SPY), make it easier to trade without significant price changes. SPY, for instance, averages billions of dollars in daily trading volume, ensuring seamless buying and selling for traders. View trading volume details on the NYSE.
Diversification: Diversified ETFs can reduce risk. The Vanguard Total Stock Market ETF (VTI) offers exposure to over 4,000 U.S. stocks, helping traders manage risks by spreading their investments across sectors. Check Vanguard's official site for more details.
If you're considering ETFs, consulting a financial advisor can be beneficial. For example, if you're trading a portfolio worth $50,000, an advisor might recommend allocating $20,000 to equity ETFs and $10,000 to bond ETFs to balance risk. Find licensed financial advisors on FINRA.
Optimizing your ETF investments involves strategies that focus on reducing risk and enhancing returns.
Diversify Your Portfolio: A mix of ETFs from different sectors and asset classes can shield your portfolio from market downturns. For instance, holding both the Invesco QQQ ETF (focused on technology) and the Vanguard Total Bond Market ETF (BND) provides balanced exposure. With BND's current price at $72.50 (as of late 2024), you can hedge against equity market risks. See diversification insights on Morningstar.
Focus on Low-Cost ETFs: Choosing ETFs with an expense ratio under 0.5% is crucial. For example, investing in the Vanguard S&P 500 ETF (VOO) with a 0.03% expense ratio could save traders $70 annually on a $100,000 investment compared to a higher-cost alternative. Learn more about ETF costs on Wikipedia.
Rebalance Regularly: Market fluctuations can skew your asset allocation. Rebalancing ensures you maintain your target mix. For instance, if equities outperform and shift your allocation to 70% stocks instead of 60%, selling some stocks to reinvest in bonds can stabilize your portfolio. Find more on portfolio rebalancing on Investopedia.
Adopt a Long-Term Perspective: Holding ETFs for the long term can help you overcome short-term volatility. For example, the Vanguard S&P 500 ETF (VOO) has delivered an average annual return of 9.5% over the past decade. Predictions for 2025 suggest it could achieve similar results if current trends continue. Stay updated with Federal Reserve reports.
ETFs are versatile tools that fit well into almost any trading strategy, from conservative to aggressive. While understanding the average ETF return is a great starting point, your success depends on aligning ETF performance factors with your trading goals. The risk involved can vary depending on the type of ETF and market conditions.
Do your research, stay disciplined, and focus on strategies like diversification and minimizing fees. With a clear plan, ETFs can help you build wealth over time, but always be mindful of the risks involved, such as market downturns or poor ETF selection.
We have conducted extensive research and analysis on over multiple data points on Average ETF Return to present you with a comprehensive guide that can help you find the most suitable Average ETF Return. Below we shortlist what we think are the best average etf return after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Average ETF Return.
Selecting a reliable and reputable online Average Etf Return trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Average Etf Return more confidently.
Selecting the right online Average Etf Return trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for average etf return trading, it's essential to compare the different options available to you. Our average etf return brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a average etf return broker that best suits your needs and preferences for average etf return. Our average etf return broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Average Etf Return.
Compare average etf return brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a average etf return broker, it's crucial to compare several factors to choose the right one for your average etf return needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are average etf return. Learn more about what they offer below.
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eToro
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XTB
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XM
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Pepperstone
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AvaTrade
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FP Markets
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SpreadEx
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Admiral
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Trading212
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IB
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Forex.com
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Regulation | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (130) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | Financial Conduct Authority (FCA) (595450), Cyprus Securities and Exchange Commission (CySEC)(310328), FSA (Financial Services Authority of Seychelles) (SD073) | FCA (Financial Conduct Authority) (609146), ASIC (Australian Securities and Investments Commission) (541122), FSC (Financial Supervision Commission, Bulgaria) (RG-03-0237), CySEC (Cyprus Securities and Exchange Commission) (398/21) | NYSE (New York Stock Exchange), FINRA (Financial Industry Regulatory Authority), SIPC (Securities Investor Protection Corporation), CIRO (Canadian Investment Regulatory Organization), FCA (Financial Conduct Authority) (208159), CBI (Central Bank of Ireland), ASIC (Australian Securities and Investments Commission) (453554), SEHK (Securities and Futures Commission, Hong Kong), MAS (Monetary Authority of Singapore) (CMS100917) | CIRO (Canadian Investment Regulatory Organization), CySEC (Cyprus Securities & Exchange Commission), NFA (National Futures Association), CFTC (Commodities Futures Trading Commission), CIMA (Cayman Islands Monetary Authority) (25033), FCA (Financial Conduct Authority) (446717) StoneX Financial Ltd, FSA (Financial Services Agency, Japan), MAS (Monetary Authority of Singapore), ASIC (Australian Securities and Investments Commission)(345646) STONEX FINANCIAL PTY LTD |
Min Deposit | 50 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | No minimum deposit | 1 | 1 | 10000 | 100 |
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Used By | 35,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 60,000+ | 30,000+ | 3,000,000+ | 3,120,000+ | 454,000+ |
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Platforms | eToro Trading App, Mobile Apps, iOS (App Store), Android (Google Play), CopyTrading, Web | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT5, MT4, MetaTrader WebTrader, Admirals Mobile Apps, iOS (App Store), Android (Google Play), Admirals Platform, StereoTrader | Web Trader, Mobile Apps, iOS (App Store), Android (Google Play) | IBKR GlobalTrader, IBKR Desktop, IBKR Mobile, Trader Workstation (TWS), IBKR APIs, IBKR ForecastTrader, IMPACT, Mobile Apps, iOS (App Store), Android (Google Play) | Mobile Apps, iOS (App Store), Android (Google Play), WebTrader, MT4, MT5, TradingView |
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Learn More |
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Up with etoro |
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Up with xtb |
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Up with pepperstone |
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Up with fpmarkets |
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Up with spreadex |
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Up with admiralmarkets |
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Up with trading212 |
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Up with interactivebrokers |
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Up with forexcom |
Risk Warning | 61% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | 65% of retail CFD accounts lose money | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. |
Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
SpreadEx Demo |
Admiral Markets Demo |
Trading 212 Demo |
Interactive Brokers Demo |
Forex.com Demo |
Excluded Countries | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, AO, BR, HR, GL, IS, IM, JM, FM, MC, NG, SI, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, TR | US, CA, JP, SG, MY, JM, IR, TR | US, CA | US | BE |
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
You can compare Average Etf Return ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
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We have listed top Average etf return below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.