BlackRock’s iShares ETFs offer a compelling way for investors to diversify their portfolios, access specific market segments, and implement various investment strategies. Known for their low costs and broad market coverage, iShares ETFs provide exposure to stocks, bonds, and other asset classes with ease.
As we look ahead to 2025, several BlackRock ETFs are particularly noteworthy due to evolving market dynamics, emerging investment themes, and their potential for growth. This article will highlight some of the best BlackRock ETFs to watch, focusing on their unique characteristics and potential benefits for investors. These ETFs are gaining attention due to their relevance in capturing broad market trends, offering diversification, and providing potential income opportunities in the coming year.
Best BlackRock ETFs to Buy in 2025
Below, we’ll examine a selection of popular and well-regarded BlackRock ETFs, highlighting their key characteristics to help you make informed investment decisions. We will consider factors such as expense ratios, top holdings, and reasons to consider each ETF.
ETF Name | Symbol | Issuer | Inception Date | Expense Ratio |
iShares Core S&P 500 ETF | IVV | BlackRock | May 15, 2000 | 0.03% |
iShares MSCI Emerging Markets ETF | EEM | BlackRock | April 26, 2003 | 0.68% |
iShares Core U.S. Aggregate Bond ETF | AGG | BlackRock | September 22, 2003 | 0.03% |
iShares Russell 2000 ETF | IWM | BlackRock | May 22, 2000 | 0.19% |
iShares MSCI All Country World Index ETF | ACWI | BlackRock | March 26, 2008 | 0.32% |
- Expense Ratio: 0.03%
- Top Holdings: Apple, Microsoft, Amazon, NVIDIA, Alphabet
- Why Consider It? IVV offers broad exposure to the U.S. large-cap market, tracking the S&P 500 index. It’s a core holding for many investors due to its low cost and diversified exposure to leading U.S. companies.
- Expense Ratio: 0.68%
- Top Holdings: Taiwan Semiconductor Manufacturing, Tencent Holdings, Alibaba Group Holding, Samsung Electronics, Meituan.
- Why Consider It? EEM provides exposure to the emerging markets equity space, offering potential growth opportunities in developing economies. It is favored for its diversification beyond developed markets.
- Expense Ratio: 0.03%
- Top Holdings: U.S. Treasury Bonds, Mortgage-Backed Securities, Corporate Bonds.
- Why Consider It? AGG tracks the performance of the Bloomberg Barclays U.S. Aggregate Bond Index, providing broad exposure to the U.S. investment-grade bond market. It’s used as a core fixed-income holding for stability and income.
- Expense Ratio: 0.19%
- Top Holdings: Super Micro Computer Inc, MicroStrategy Inc, Viking Therapeutics Inc, ACM Research Inc, AppLovin Corp.
- Why Consider It? IWM offers exposure to small-cap U.S. companies, tracking the Russell 2000 index. It’s considered for its potential for higher growth, although with higher volatility, compared to large-cap stocks.
- Expense Ratio: 0.32%
- Top Holdings: Apple, Microsoft, Amazon, NVIDIA, Alphabet.
- Why Consider It? ACWI provides global equity exposure, tracking the MSCI All Country World Index. It’s a diversified option for investors seeking exposure to both developed and emerging markets in a single ETF.
InvestingPro: Unlock ETF Data
Discover the capabilities of InvestingPro for evaluating BlackRock ETFs. Access in-depth analysis of BlackRock ETFs, easily compare expense ratios, 1-year, and 5-year returns:
- Comprehensive ETF Data: InvestingPro offers detailed information on key ETF metrics.
- Performance Benchmarking: Compare ETF performance against benchmarks and peer groups.
- Fundamental Analysis: Access historical data to enhance your research.
Should I Buy BlackRock ETFs?
Investing in BlackRock ETFs is generally considered a sound strategy for investors seeking broad market exposure, diversification, and relatively low risk. However, it’s crucial to assess your financial goals, risk tolerance, and time horizon before investing.
Potential Benefits
- Diversification: ETFs provide instant diversification across a basket of assets.
- Low Cost: Many BlackRock ETFs have low expense ratios, making them cost-effective.
- Liquidity: ETFs trade like stocks, offering high liquidity.
- Accessibility: ETFs make it easy to access various market segments.
Potential Risks
- Market Risk: ETF values can fluctuate with market conditions.
- Tracking Error: ETFs may not perfectly track their underlying index.
- Concentration Risk: Some ETFs may be heavily weighted in a few holdings.
How to Find the Top BlackRock ETFs?
Choosing the right BlackRock ETF requires careful analysis and consideration of several factors. Here are some essential steps to help you find the top BlackRock ETFs for your investment needs:
1. Analyze Holdings
- Scrutinize the underlying assets to assess risk and alignment with your investment objectives. Use InvestingPro to gain insights into holdings and diversification metrics.
2. Check Expense Ratios
- Lower expense ratios mean more of your money stays invested. Compare costs across different BlackRock ETFs, balancing fees with fund performance. Use InvestingPro to assess and compare expense ratios.
3. Review Performance and Liquidity
- Historical performance isn’t a guarantee of future returns, but it provides insights into how the ETF reacts to market conditions. Ensure the ETF has sufficient trading volume for easy buying and selling. Within InvestingPro you can find and compare the performance across ETF benchmarks.
4. Understand the Theme
- Each ETF has a specific investment theme. Before investing, ensure the ETF’s theme aligns with your overall investment strategy and goals.
Best BlackRock ETFs Frequently Asked Questions
What are the benefits of investing in BlackRock ETFs?
BlackRock ETFs offer diversification, low cost, liquidity, and access to various market segments.
How do I choose the right BlackRock ETF for my portfolio?
Consider your investment goals, risk tolerance, and the ETF’s underlying assets, expense ratio, and performance history.
Are BlackRock ETFs suitable for long-term investing?
Yes, many BlackRock ETFs are well-suited for long-term investing, especially those with broad market exposure and low expense ratios.
How does the expense ratio affect my returns from a BlackRock ETF?
The expense ratio is an annual fee charged by the ETF to cover its operating expenses. A higher expense ratio will reduce your overall returns, so it’s generally beneficial to choose ETFs with lower expense ratios, all else being equal.
What are the tax implications of investing in BlackRock ETFs?
ETFs can generate taxable events through dividend distributions and capital gains distributions. These distributions are taxed according to your individual tax bracket. It’s important to understand the tax implications of ETF investing and to consult with a tax advisor if needed.