4 Best BlackRock ETFs To Invest In Now

In this article, I will dive into four BlackRock exchange-traded funds that I think are promising potential investments now and explain my methodology for arriving at those picks. These funds represent different sectors and asset classes, providing a range of flavors of BlackRock ETFs to consider. Of course, all investors should do their own research and make their own decisions.

Advantages Of Investing In Exchange-Traded Funds (ETFs)

ETFs have several advantages that make them attractive investments, and it is no wonder their popularity has skyrocketed in recent decades. They offer diversification by holding a basket of securities bundled into a single wrapper. They are bought and sold on exchange, providing liquidity not available to mutual funds. ETFs also tend to have lower fees compared to other investment vehicles. Plus, they’re transparent; investors can look under the hood at any time to see what the funds are holding. Overall, ETFs provide flexibility, cost-effectiveness and a straightforward way to invest in different markets and sectors, including artificial intelligence, healthcare and technology.

Criteria Used For Choosing These BlackRock ETFs

To choose the ETFs, I started with more than 400 iShares ETFs and applied filters to find funds that offer clear market exposure without unnecessary complexity. I looked for ETFs with at least $200 million in assets to ensure liquidity, but I didn’t want to miss out on hidden gems.

I prefer funds with 20 to 100 holdings and at least 50% of assets in the top 25 positions–I like knowing what I own. I required a three-year track record, balancing proof-of-concept with innovation. I didn’t screen based on past performance or expense ratios. I’ve learned that chasing performance can be risky, and I’m willing to pay a bit more for an ETF that fits a specific purpose.

I also look at long-term price charts, as I have been a chartist since my youth, a very long time ago. I’ve excluded single-country ETFs to keep things broadly applicable. My goal is to identify ETFs that offer focused exposure to market segments while balancing risk and potential return. It’s an approach that’s served me well over the years.

4 Best BlackRock ETFs To Invest in Now

1. iShares U.S. Telecommunications ETF
IYZ

iShares U.S. Telecommunications ETF Overview

• Recent Share Price: $22.30
• Number of Holdings:19
• Price to Book Ratio:1.9

This fund targets U.S. companies providing telephone and internet products, services and technologies. With a concentrated portfolio of 19 holdings, IYZ provides significant exposure to major players in the U.S. telecom space, particularly the Big Three of Verizon, AT&T and T-Mobile.

Why IYZ Is A Top Choice

IYZ provides targeted exposure to an essential industry. The fund’s attractive yield and potential for 5G-driven growth balance both stability with growth potential. With a portfolio of 19 holdings, dominated by industry giants Verizon, AT&T and T-Mobile, IYZ offers a streamlined way to gain exposure to the U.S. telecom sector.

The ongoing rollout of 5G technology presents a substantial growth opportunity for the sector. 5G is seen as the requisite infrastructure for future digital technologies and, as such, the fund is poised for some upside. Despite recent performance challenges, the fund’s composition of companies providing essential services with stable cash flows offers a potential value opportunity, with a book value of 1.9x.

2. iShares 3-7 Year Treasury ETF (IEI)

iShares 3-7 Year Treasury ETF Overview

• Recent Share Price: $116.39
• Number of Holdings:84
• Price to Book Ratio: N/A (this a bond ETF)

The iShares 3-7 Year Treasury Bond ETF provides exposure to intermediate-term U.S. Treasury bonds. This fund tracks the ICE U.S. Treasury 3-7 Year Bond Index, providing a balanced approach between short-term stability and the higher yields typically associated with longer-term bonds.

Why IEI Is A Top Choice

iShares 3-7 Year Treasury Bond is a high-quality, low-risk investment vehicle that can serve as a core holding in fixed-income portfolios. It offers a happy medium of yield and safety in the current market environment.

With the Federal Reserve potentially nearing the end of its rate hiking cycle, IEI’s focus on intermediate-term Treasurys could potentially benefit from stabilizing or decreasing interest rates. The fund provides an attractive yield compared to shorter-term bonds without the higher interest rate risk of longer-term bonds, while also serving as a portfolio diversifier and potential hedge against economic uncertainty.

3. iShares Transportation Average ETF
IYT

iShares Transportation Average ETF Overview

• Current Share Price: $66.34
• Number of Holdings: 44
• Price to Book Ratio: 4.1

iShares Transportation Average tracks the S&P Transportation Select Industry FMC Capped Index, offering exposure to transportation sector stocks. This includes companies involved in railroads, airlines and trucking. Top holdings include Union Pacific, Uber Technologies, United Parcel Service, FedEx and Old Dominion Freight Line.

Why IYT Is A Top Choice

I like IYT for several reasons. It offers diversified exposure to critical sectors like railroads, airlines and trucking, which are closely linked to economic activity and often perform well during economic expansions. The transportation sector is a leading economic indicator and IYT’s performance can signal broader market trends, like increased consumer spending and industrial production. However, given the essential nature of these industries, IYT is relatively resilient in economic downturns as well. I also like the number of holdings for IYT, it is diverse, but not too broad of a portfolio.

4. iShares Cohen & Steers REIT ETF
ICF

iShares Cohen & Steers REIT ETF Overview

• Recent Share Price: $60.22
• Number of Holdings: 30
• Price to Book Ratio: 2.7

The iShares Cohen & Steers REIT ETF tracks the Cohen & Steers Realty Majors Index. This ETF offers investors exposure to a diversified portfolio of real estate investment trusts (REITs), which are companies that own, operate or finance income-producing real estate. Top holdings include Prologis, American Tower, Equinix, Welltower and Digital Realty.

Why ICF Is A Top Choice

REITs typically provide attractive dividend yields, making them appealing for income-seeking investors, especially in lower-interest-rate environments (which may be on the horizon). ICF is no exception, it currently delivers a yield of 2.9%.

Additionally, ICF provides diversification benefits by investing across various real estate sectors, such as residential, commercial and healthcare properties, reducing exposure to individual property risks. ICF also has exposure to mobile towers and data centers, which are critical to wireless communication and digital infrastructure. All these aspects combined make ICF a top pick for me.

Bottom Line

I’ve provided four BlackRock ETFs that span asset classes and sectors. Some of these investments are more oriented towards growth, while others represent quality and stability. These picks are the result of my own methodology, which balances practical considerations like liquidity and a track record, with my own analysis of technical indicators among other things.

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