5 Cheap ETFs to Buy Now That Won't Break Your Budget

The recent market correction has created a unique buying window. While expensive ETFs dominate headlines, here’s a counterintuitive move: cheap ETFs trading under $20 per share are quietly positioning themselves as major growth catalysts. Out of 2,000+ funds, only a handful trade this low—but these could deliver outsized returns in coming months.

We’ve identified five standout cheap ETFs with strong fundamentals: Schwab U.S. Large-Cap ETF (SCHX), Global X Cloud Computing ETF (CLOU), U.S. Global Jets ETF (JETS), Global X SuperDividend U.S. ETF (DIV), and Motley Fool Next Index ETF (TMFX).

Why Cheap ETFs Matter More Than You Think

Capital Efficiency – This is the game changer. With $10,000, you either grab 500+ shares of a cheap ETF under $20, or just 100 shares of something priced at $100. More shares mean potentially amplified gains when prices move.

Percentage Gains on Steroids – A $1 move on a $20 stock equals a 5% gain. That same $1 move on a $100 stock? Only 1%. The math favors cheap ETFs when momentum kicks in.

Diversification Without Breaking the Bank – These funds let everyday investors spread bets across multiple sectors and asset classes without needing deep pockets.

The 5 Cheap ETFs Reshaping Portfolios

Schwab U.S. Large-Cap ETF (SCHX) | $19.60 Down 19% from its February peak, SCHX is now a screaming bargain. It tracks 752 of America’s largest companies with zero single holding exceeding 6% of assets. Tech dominates at 31.9%, followed by financials, consumer discretionary, and healthcare. At just 3 bps annually with $45.3B in assets, this cheap ETF offers blue-chip exposure at rock-bottom cost. Zacks Rank: #2 (Buy).

Global X Cloud Computing ETF (CLOU) | $18.31 AI adoption is turbocharging cloud demand. The global cloud market hits $912.77B in 2025, growing at 21.20% annually through 2034. CLOU captures this wave through 37 holdings in SaaS, PaaS, IaaS, and data center REITs. At 68 bps annually, this cheap ETF costs more but targets a high-growth sector. The 44% crash from January lows has made entry compelling. Zacks Rank: #2 (Buy).

U.S. Global Jets ETF (JETS) | $17.37 Airlines trade at 6.48 P/E versus the S&P 500’s 16.69—a massive valuation disconnect. Earnings growth is projected at 9.8% this year, well above market average. JETS holds 58 global airline operators and manufacturers, charging 60 bps annually with $641.8M in assets. Down 36% from January peaks, this cheap ETF looks oversold. Zacks Rank: #1 (Strong Buy).

Global X SuperDividend U.S. ETF (DIV) | $16.54 When equity returns look uncertain, income becomes king. This cheap ETF targets America’s 50 highest dividend payers, emphasizing energy, real estate, utilities, and consumer staples. The 45 bps fee is steep, but the yield cushion protects against volatility. Down 15% from November highs with $605M in assets, it’s ripe for income-focused buyers. Zacks Rank: #2 (Buy).

Motley Fool Next Index ETF (TMFX) | $15.93 Small and mid-cap conviction plays get exposure through 192 curated holdings from Motley Fool analysts. No single position exceeds 2% of assets. Tech leads at 25.9%, with industrials, consumer discretionary, and healthcare providing balance. At $26.3M in assets and 50 bps fees, this cheap ETF is niche but strategic. Down 32.6% from peaks, contrarian positioning is available. Zacks Rank: #2 (Buy).

The Flip Side: What Could Go Wrong

Cheap ETFs pack a punch in both directions. Volatility is their shadow—sharp downside is possible if momentum reverses. They’re also prey to manipulation schemes and liquidity traps. Some track smaller, less-regulated companies with limited SEC filing requirements, making due diligence harder. Size matters when picking cheap ETFs; ensure adequate trading volume before committing capital.

The Bottom Line

Cheap ETFs aren’t for everyone, but right now they’re offering a rare asymmetric risk-reward setup. Market dislocations have created entry points that won’t last forever. Whether you’re chasing growth (CLOU), value (JETS), income (DIV), or diversified core holdings (SCHX), the cheap ETF playbook deserves a serious look.