1.Invesco NASDAQ 100 ETF
QQQM (NASDAQ)
The Invesco NASDAQ 100 ETF (QQQM) is an attractive option for investors looking to gain exposure to 100 of the largest nonfinancial companies, with a significant focus on technology, which accounts for 63% of its holdings. It boasts a competitive expense ratio of just 0.15%, lower than its primary competitor, QQQ, while delivering impressive returns of 24.07% over the past year and an astounding 99.97% over the last five years. Additionally, with a dividend yield of 0.49%, QQQM offers both growth potential and some income generation for investors.
Pros:
- Heavy tech exposure
- Lower expense ratio compared to competitors
Cons:
- Market volatility risks
- Concentration in tech sector
2.Fidelity Total International Index Fund
FTIHX (NASDAQ)
The Fidelity Total International Index Fund (FTIHX) stands out as a top-rated mutual fund, recognized as a Morningstar Medalist with a gold rating. This fund, with an impressive $19.9 billion in assets and a low expense ratio of just 0.06%, provides broad exposure to international equities. Investors can benefit from a solid 2.83% dividend yield and a remarkable one-year return of 36.29%, making it an attractive choice for those seeking global diversification.
Pros:
- Broad international equity exposure
- Gold-rated Morningstar Medalist status
Cons:
- Currency risks
- Geopolitical factors
3.Vanguard S&P 500 ETF
VOO (AMEX)
The Vanguard S&P 500 ETF (VOO) is an attractive option for long-term investors, as it tracks the performance of the S&P 500 while maintaining an ultra-low expense ratio of just 0.03%. With strong diversification in sectors like technology, financials, and communication services, VOO has delivered impressive returns, boasting a 19.60% increase over the past year and an 83.63% rise over the last five years. Analysts believe in its potential, setting a 12-month price target of $738.55, making it a solid choice for those looking to invest for the next decade.
Pros:
- Strong diversification across top U.S. companies
- Ultra-low expense ratio
Cons:
- Market timing risks
- Dependence on large-cap performance
4.iShares Core MSCI Total International Stock ETF
IXUS (NASDAQ)
The iShares Core MSCI Total International Stock ETF (IXUS) is an attractive option for investors seeking international diversification with a low expense ratio of just 0.07%. With a solid dividend yield of 3.30% and an impressive 1-year return of 35.38%, this ETF provides exposure to both developed and emerging markets outside the U.S. While it offers strong growth potential, investors should remain cautious of currency risks and geopolitical factors that may impact international investments.
Pros:
- International diversification
- Low expense ratio
Cons:
- Currency fluctuations
- Geopolitical risks
5.iShares MSCI EAFE Value ETF
EFV (CBOE)
The iShares MSCI EAFE Value ETF (EFV) is a top-rated fund focusing on value stocks within developed international markets, boasting a Morningstar Medalist rating. With a robust dividend yield of 4.22%, it offers investors the potential for long-term growth, although it comes with risks associated with equity markets and foreign currency fluctuations. Over the past year, EFV has delivered impressive returns of 40.47%, making it an attractive option for those looking to capitalize on value investing strategies.
Pros:
- Focus on value stocks
- Morningstar Medalist rating
Cons:
- Foreign currency fluctuations
- Value stocks may underperform
Final Words
In conclusion, as you consider the best ETFs for beginners this January, remember that thorough research and comparison of your options are essential for making informed investment decisions. You can explore various funds to find the ones that align best with your financial goals and risk tolerance.
Frequently Asked Questions
The Fidelity Total International Index Fund (FTIHX) is a mutual fund that provides broad international equity exposure by investing at least 80% of its assets in securities included in the MSCI ACWI ex USA Investable Market Index. It has a low expense ratio of 0.06% and holds approximately $19.9 billion in assets.
The Fidelity Total International Index Fund has shown strong performance with a 1-Year Return of 36.29%, a 3-Year Return of 44.38%, and a 5-Year Return of 28.32%. The fund also had a 10-Year Return of 90.77%, indicating a robust long-term investment potential.
FTIHX pays dividends annually. The most recent dividend payout was $0.4820 on December 15, 2025, with a dividend yield of approximately 2.83%.
Beginners should look for ETFs with low expense ratios, a diverse portfolio, and a solid track record of performance. It's also important to consider the ETF's investment strategy and whether it aligns with your financial goals.
FTIHX stands out due to its low expense ratio of 0.06% and its broad exposure to international markets through the MSCI ACWI ex USA index. Additionally, it has received a gold rating from Morningstar, indicating strong risk-adjusted performance.
Investing in FTIHX involves risks typical of international equity investments, including currency risk and economic instability in foreign markets. Additionally, as the fund primarily invests in non-U.S. securities, it may experience volatility based on global market conditions.
