April 2023 Edition: This list of the best exchange-traded funds (ETFs) to buy for 2023 features diversified funds. We've further fine-tuned our list to include only those ETFs that have outperformed the market over the past year and have the potential for continued growth.
Though the stock market stumbled in 2022, it got off to a great start this year as many investors began to move out of defensive risk-off positions and into more growth-oriented investments. With inflation on the rise, investors are looking for ways to protect their portfolios while still seeking growth opportunities. ETFs can provide this balance by offering diversification and exposure to a variety of asset classes.
One popular ETF for investors looking for diversification is the Vanguard Total Stock Market ETF (VTI). This fund tracks the performance of the CRSP US Total Market Index, providing investors with exposure to the entire U.S. stock market. With a low expense ratio and broad diversification, this fund is an excellent choice for investors seeking a simple, low-cost way to invest in the stock market.
If you want exposure to hundreds of small-cap stocks, the easiest way to do that is with a Russell 2000 ETF. The iShares Russell 2000 ETF (IWM) tracks the performance of the Russell 2000 Index, which includes small-cap stocks from a wide range of industries. This ETF is an excellent choice for investors seeking exposure to small-cap stocks, which have historically outperformed large-cap stocks over the long term.
Another popular ETF for investors seeking diversification is the iShares Core MSCI EAFE ETF (IEFA). This fund tracks the performance of the MSCI EAFE Index, which includes stocks from developed markets outside of the U.S. and Canada. With exposure to a wide range of international companies, this ETF provides investors with diversification and exposure to global growth opportunities.
In a challenging market, it helps to ignore day-to-day volatility. The Invesco S&P 500 Low Volatility ETF (SPLV) is an excellent choice for investors seeking to reduce portfolio volatility. This fund tracks the performance of the S&P 500 Low Volatility Index, which includes the 100 least-volatile stocks in the S&P 500. This ETF is an excellent choice for investors seeking to reduce portfolio volatility while still seeking exposure to the stock market.
A dividend ETF is a fund that invests exclusively in dividend-paying companies. Learn more about how to invest in dividend ETFs with these five top-rated options. The iShares Select Dividend ETF (DVY) tracks the performance of the Dow Jones U.S. Select Dividend Index, which includes high-yield dividend-paying U.S. stocks. This ETF is an excellent choice for investors seeking income and dividend growth opportunities.
Finding the best ETFs to buy in a high-inflation environment can seem like a tall task, but these five picks are a good place to start. The SPDR Gold Shares ETF (GLD) tracks the performance of gold bullion and provides investors with exposure to the precious metal. This ETF is an excellent choice for investors seeking protection against inflation and market volatility.
Growth ETFs give investors easy exposure to the wide world of growth investing. The Vanguard Growth ETF (VUG) tracks the performance of the CRSP US Large Cap Growth Index, which includes large-cap U.S. growth stocks. This ETF is an excellent choice for investors seeking exposure to growth stocks, which have historically outperformed value stocks over the long term.
In conclusion, ETFs can provide investors with diversification, exposure to a variety of asset classes, and protection against inflation and market volatility. The best ETFs for investment in 2023 include the Vanguard Total Stock Market ETF (VTI), the iShares Russell 2000 ETF (IWM), the iShares Core MSCI EAFE ETF (IEFA), the Invesco S&P 500 Low Volatility ETF (SPLV), and the iShares Select Dividend ETF (DVY).
