Best ETFs Under $20: Top-Performing Funds for Value-Focused Investors

Exchange-traded funds have become increasingly popular for retail and institutional investors seeking diversified exposure to various market segments. Among the thousands of ETF options available, funds trading below $20 per share represent a distinct category that merits closer examination. These affordable alternatives provide unique advantages in accessibility, growth potential, and portfolio construction. With market volatility creating compelling entry points, several sub-$20 ETFs have earned strong ratings from research firms based on their underlying holdings and performance trajectories.

Current market conditions have opened substantial opportunities for investors willing to explore this segment. We’ve identified five ETFs trading under $20 that carry top-tier analyst ratings, each addressing different investment objectives—from large-cap stability to emerging technology exposure to income generation.

Why Affordable ETFs Matter in Today’s Market

Market downturns frequently present the most attractive opportunities for long-term investors. When valuations compress and established funds trade at depressed levels, even small allocations can compound into meaningful positions over time. ETFs trading below $20 represent a particularly interesting subset, as they eliminate one of the primary barriers to fund-based investing: the need for substantial upfront capital.

These lower-priced vehicles are not inherently riskier or lower-quality than their higher-priced counterparts. Instead, their pricing reflects factors such as fund inception date, asset base, or simply the underlying index composition. This distinction is crucial for investors evaluating portfolio construction strategies.

Three Compelling Advantages of Sub-$20 ETFs

Affordability and Portfolio Flexibility

Lower share prices enable investors to build meaningful positions with modest capital. An investor deploying $10,000 can acquire 500+ shares of a sub-$20 fund or allocate to multiple sub-$20 funds for broader diversification, whereas the same capital might purchase only 100 shares of a $100 fund. This flexibility allows for more granular portfolio design and easier rebalancing across positions.

Percentage Gain Potential

Lower absolute share prices can translate to higher percentage gains when prices appreciate. A $1 move in a $20 fund represents a 5% gain, compared to 1% for a $100 fund experiencing the same dollar movement. For value-oriented investors, this mathematical relationship offers enhanced leverage on market recoveries.

Sector Diversification on a Modest Budget

Sub-$20 ETFs function effectively as building blocks for diversified portfolios. Investors can construct multi-sector exposure—technology, energy, financials, healthcare—without deploying large amounts of capital in any single position, creating both flexibility and risk management.

Five Best ETFs Under $20 Worth Considering

Schwab U.S. Large-Cap ETF (SCHX) – Blue-Chip Foundation

Last Price: $19.60 | Analyst Rating: Zacks #2 (Buy)

For investors seeking exposure to America’s largest companies, Schwab U.S. Large-Cap ETF provides direct access to 752 holdings representing the full market capitalization-weighted U.S. large-cap universe. The fund tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, with no individual position exceeding 6% of assets.

Sector composition reflects broad U.S. economic exposure, with information technology commanding 31.9% allocation, followed by meaningful positions in financials, consumer discretionary, and healthcare. The fund’s ultra-low fee structure—just 3 basis points annually—makes it exceptionally cost-effective for core portfolio positions. With $45.3 billion in assets under management, SCHX offers both scale and liquidity. The ETF experienced a significant pullback from early 2025 peaks, creating a notable entry opportunity for value-conscious investors.

Global X Cloud Computing ETF (CLOU) – Technology Growth Exposure

Last Price: $18.31 | Analyst Rating: Zacks #2 (Buy)

The proliferation of artificial intelligence and computational workload migration continues driving cloud infrastructure demand. Market analysis projects the global cloud computing sector reaching $912.77 billion in 2025, with anticipated compound annual growth of 21.20% through 2034—substantially outpacing broader economic growth.

Global X Cloud Computing ETF captures this secular trend by holding 37 companies positioned to benefit from cloud adoption, including software-as-a-service providers, infrastructure platforms, managed services operators, and data center REITs. No holding exceeds 5.3% of the fund’s composition, ensuring meaningful diversification within the cloud computing theme.

At 68 basis points annually, the fee structure remains reasonable for thematic exposure. The fund carries $276.6 million in assets and has experienced volatility consistent with growth-focused technology strategies. The pullback from 2025 peaks has positioned CLOU attractively for investors with higher risk tolerance and multi-year investment horizons.

U.S. Global Jets ETF (JETS) – Cyclical Recovery Play

Last Price: $17.37 | Analyst Rating: Zacks #1 (Strong Buy)

The airline industry currently trades at historically compressed valuations. With a P/E multiple of 6.48 compared to the S&P 500’s 16.69, the sector presents exceptional value for investors anticipating cyclical recovery. Sector analysts project earnings growth of 9.8% this year, suggesting meaningful multiple expansion potential as the recovery unfolds.

U.S. Global Jets ETF provides diversified exposure to 58 global airline operators and manufacturers through the U.S. Global Jets Index. The 60 basis point annual fee is standard for specialty sector funds. The ETF has accumulated $641.8 million in assets and earned the highest Zacks analyst rating available, reflecting conviction in the sector’s attractiveness. The fund’s substantial decline from early 2025 levels has created a compelling risk-reward scenario for tactical allocation.

Global X SuperDividend U.S. ETF (DIV) – Income Generation Strategy

Last Price: $16.54 | Analyst Rating: Zacks #2 (Buy)

For investors prioritizing consistent cash flow, dividend-focused strategies offer portfolio stability and return enhancement when equity price appreciation proves elusive. The Global X SuperDividend U.S. ETF targets the 50 highest-yielding U.S. equity positions through the Indxx SuperDividend U.S. Low Volatility Index, combining income generation with lower volatility characteristics.

The fund maintains significant allocations to traditionally high-yielding sectors: energy, real estate, utilities, and consumer staples. These mature, established companies typically exhibit greater resilience during market uncertainty. DIV charges 45 basis points annually and manages $605 million in assets. The fund’s pullback from late 2025 peaks has enhanced its attractiveness for income-focused allocators.

Motley Fool Next Index ETF (TMFX) – Small-Cap Growth Selection

Last Price: $15.93 | Analyst Rating: Zacks #2 (Buy)

The Motley Fool Next Index ETF offers exposure to small- and mid-capitalization stocks selected through The Motley Fool’s proprietary stock research process. The fund holds 192 individual positions, with no single holding exceeding 2% of assets—ensuring meaningful diversification across recommended securities.

Sector positioning reflects growth orientation, with information technology representing 25.9% of the fund, followed by industrials, consumer discretionary, and healthcare. The 50 basis point annual fee reflects the active management research embedded in the indexing approach. At $26.3 million in assets, TMFX remains a smaller fund but has attracted investors seeking access to curated small-cap selections. Recent declines have improved valuations within the fund’s portfolio.

Understanding the Risks and Considerations

While sub-$20 ETFs offer distinctive advantages, investors must acknowledge meaningful risk factors. Lower share prices can translate to higher volatility in percentage terms, potentially leading to substantial losses if underlying holdings decline. Additionally, lower-priced securities face elevated susceptibility to price manipulation tactics and liquidity constraints.

ETFs with smaller asset bases may have limited trading volume, widening bid-ask spreads and increasing trading costs. Furthermore, some smaller or specialized ETFs operate with less rigorous SEC oversight compared to mega-cap funds, making research and due diligence more critical.

Successful deployment of sub-$20 ETFs requires thoughtful position sizing, clear investment objectives, and acceptance of sector-specific or market-timing risks inherent in any concentrated strategy.

Making the Right Selection

Identifying the best ETFs under $20 requires matching fund characteristics with personal investment objectives. Value investors may gravitate toward SCHX for foundational large-cap exposure, while growth-oriented investors might consider CLOU’s technology focus. Income seekers can explore DIV’s dividend concentration, while tactical traders might evaluate JETS’ cyclical opportunity or TMFX’s small-cap growth potential.

Each fund brings distinct risk-return characteristics, fee structures, and strategic purposes. By evaluating these options against your investment timeline, risk tolerance, and portfolio construction strategy, you can identify which sub-$20 ETFs best serve your wealth-building objectives in the current market environment.