Best ETFs Under $20: Top Opportunities for Budget-Conscious Investors

The current market environment has created compelling opportunities for investors seeking exposure through low-cost vehicles. While exchange-traded funds under $20 represent only a fraction of the 2,000+ available options, they provide distinct advantages in terms of accessibility and growth potential. We’ve identified five best ETF under $20 selections with strong performance ratings that merit consideration for diverse investment portfolios.

Why Lower-Priced ETFs Make Sense in Today’s Market

Enhanced Purchasing Power

A fundamental advantage lies in capital efficiency. With $10,000, an investor can acquire 500+ shares of an ETF trading below $20, compared to merely 100 shares at $100 per unit. This multiplier effect enables broader position building across multiple funds simultaneously.

Amplified Return Percentages

The mathematics favor lower-priced instruments. A $1 price movement on a $20 ETF translates to 5% appreciation, whereas the same dollar movement on a $100-priced ETF represents only 1% gain. This sensitivity to movement creates enhanced upside potential during recovery cycles.

Portfolio Diversification Without Capital Strain

Lower entry points democratize sector exposure. Investors can build well-rounded holdings across technology, energy, healthcare and dividend-focused assets without requiring substantial capital deployment—an increasingly attractive proposition given market uncertainty.

Five Best ETF Under $20 Worth Examining Now

Schwab U.S. Large-Cap ETF (SCHX) – Trading at $19.60

This fund tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, providing diversified exposure to America’s 752 largest corporations. No single holding exceeds 6% portfolio weight, ensuring balanced risk distribution. Technology dominates allocations at 31.9%, with meaningful positions in financials, consumer discretionary and healthcare sectors. The fund’s streamlined 3 basis point annual fee paired with its $45.3 billion asset base demonstrates institutional confidence. Currently trading 19% below its February highs, SCHX presents entry-point opportunities for value-oriented allocators. Its Zacks rank reflects strong fundamental positioning.

Global X Cloud Computing ETF (CLOU) – Trading at $18.31

Cloud infrastructure represents one of the technology sector’s most resilient themes. The global market is projected to expand from current levels to $912.77 billion by 2025, with continued 21.20% annual growth through 2034. This ETF captures that expansion by holding 37 companies offering SaaS, PaaS, IaaS solutions, and data center operations. Individual holdings remain modest at under 5.3% each, providing diversification benefits. Despite charging 68 basis points annually and holding $276.6 million in assets, CLOU has declined 44% from January peaks, creating meaningful accumulation opportunities for those with longer time horizons. The fund maintains strong analytical support.

U.S. Global Jets ETF (JETS) – Trading at $17.37

Aviation sector valuations have reached historically compressed levels. With industry price-to-earnings multiples at 6.48 versus 16.69 for the broader S&P 500, the sector appears significantly undervalued. Furthermore, earnings growth expectations of 9.8% exceed broader market forecasts. This ETF provides global exposure to 58 airline operators and manufacturers through the U.S. Global Jets Index. At 60 basis points annually with $641.8 million under management, JETS carries the fund’s strongest rating designation. The 36% decline from late January represents potential capitulation, potentially signaling recovery initiation. This represents the best etf under $20 for those bullish on cyclical reopening narratives.

Global X SuperDividend U.S. ETF (DIV) – Trading at $16.54

Dividend-focused strategies gain relevance when equity returns face headwinds. This fund selects America’s 50 highest-yielding securities, weighted toward energy, real estate, utilities and consumer staples—defensive sectors demonstrating stability through volatility cycles. By tracking the Indxx SuperDividend U.S. Low Volatility Index, it balances income generation with downside cushioning. Management charges 45 basis points on a $605 million asset base. The 15% pullback from November peaks offers reinvestment entry points for income-oriented portfolios. Holdings typically represent established companies with lower volatility profiles, making DIV suitable for conservative allocators.

Motley Fool Next Index ETF (TMFX) – Trading at $15.93

This fund takes a curated approach, holding 192 highest-conviction, small- and mid-cap selections from independent research analysts. Technology dominance at 25.9% combines with meaningful industrials, consumer discretionary and healthcare exposure. Individual stock weights cap at 2%, eliminating concentration risk. The 50 basis point annual fee applies to a $26.3 million asset base. Despite declining 32.6% from peak valuation, the focused small-cap orientation appeals to growth-oriented investors comfortable with elevated volatility. Among the best etf under $20 options for those seeking emerging company exposure through managed research frameworks.

Important Considerations Before Deploying Capital

Lower-priced ETFs introduce elevated volatility relative to premium-priced counterparts, necessitating appropriate risk tolerance assessment. Price movement magnitude amplifies losses alongside gains. Additionally, certain low-priced instruments face heightened susceptibility to market manipulation schemes. Investors must conduct independent due diligence on fund holdings, expense structures and historical performance data before committing capital.

The current market environment presents neither guaranteed outcomes nor risk-free scenarios. Thorough analysis and alignment with individual financial objectives remain paramount.