Paul Merriman Best in Class ETFs List for 2024

Every year the legendary investing author and educator Paul Merriman and his team release their recommendations of “best in class ETFs” for each market segment suggested for his model portfolios. They usually line up with my own research and suggestions. The list for 2023 is below.

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Introduction

By “best in class,” Merriman aims to identify funds with low fees and appreciable factor loadings – basically, getting the most exposure “bang” for your buck. These funds fit in his model portfolios like the 4 Fund Portfolio and the Ultimate Buy and Hold Portfolio.

The list below is from 2023. Note that these lists don't necessarily have to line up with the strict calendar year. For example, Merriman may not publish the 2024 list until mid-2024.

Note that “International” or “Int'l” below refers to ex-US Developed Markets. Emerging Markets are specified as “EM”.

Remember that switching funds in a taxable account may create taxable events if you have gains. If you have losses, you may want to harvest them.

Lastly, the “best in class ETF” may or may not be suitable for you depending on your views on fees, factors, and active versus passive management. Do your own due diligence.

Paul Merriman Best in Class ETFs

Market Segment	Best-in-Class ETF	Alternative Recommendations
U.S. Large Cap Blend	AVUS	VOO, VTI, IVV, SPLG, SCHX
U.S. Large Cap Value	RPV	VONV, IUSV, SCHV, SPYV
U.S. Small Cap Blend	IJR	VIOO, IWC, SCHA, SPSM
U.S. Small Cap Value	AVUV	VIOV, SLYV, IJS, RZV
U.S. REIT	VNQ	FREL, USRT, SCHH
Int'l Large Cap Blend	AVDE	VEA, IEFA, SPDW, SCHF
Int'l Large Cap Value	DFIV	EFV, VYMI, FIVA, DWX
Int'l Small Cap Blend	FNDC	VSS, SCZ, GWX, SCHC
Int'l Small Cap Value	AVDV	DLS
Emerging Markets	AVEM	VWO, IEMG, SPEM, SCHE
EM Large Cap Value	AVES	DFEV
EM Small Cap Blend	EEMS	DGS, EWX
Int'l REIT	—	VNQI, IFGL
Short-Term Bonds	VGSH	SHY, SPTS, SCHO
Int.-Term Bonds	SPTI	IEF, VGIT, SCHR
TIPS	VTIP	STIP, SCHP

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Disclosures: I am long VOO, AVUV, VEA, AVDV, and DGS in my own portfolio.

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