The stock market has seen unprecedented volatility in 2020 and 2021, and the outlook for 2022 is uncertain. Despite the current market slump, now is a smart time to strengthen your investment portfolio. stock prices are down significantly over the last few months, and there are some great bargains to be had. But it can be difficult to know where to start.
Enter Exchange Traded Funds (ETFs). ETFs are a great way to diversify your portfolio and reduce your risk. They offer exposure to a wide range of stock, bonds, commodities, and other investment, while allowing you to benefit from the collective performance of a larger portfolio.
These growth ETFs offer exposure to higher-risk, higher-reward stock while lessening the risk of a single stock torpedoing your returns. Back in October, it seemed like 2022 might go down in the history books as one of the worst years ever for investors. But the markets have been slowly recovering since then, and now is a great time to start planning for 2023.
These are some of the best ETFs to buy heading into New Year 2023. Not only do they offer solid diversification, but they're cheap. Growth ETFs give investors easy exposure to the wide world of growth investing. Vanguard Information Technology ETF (AMEX:VGT), Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) and iShares Core S&P 500 ETF (AMEX:IVV) are just a few of the ETFs out there that offer exposure to growth stock.
These top-rated ETFs and mutual funds can bring balance to portfolios with off-kilter asset allocations. While they may not offer the same potential upside as stock, they offer a range of benefits, including low fees, tax efficiency, and exposure to a variety of asset classes.
The downside protection and higher upside caps make these one of the most attractive deals in the markets right now. In a special ETF Prime, VettaFi’s Lara Crigger and Morningstar’s Ben Johnson sat down with host Nate Geraci to recap the top 2022 stories. They discussed the best ETFs for long-term investors and the benefits of investing in the right ETFs.
These three growth-focused ETFs to buy provide meaningful long-term upside for cautious investors. Vanguard Information Technology ETF (AMEX:VGT), Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) and iShares Core S&P 500 ETF (AMEX:IVV) are all great options. They offer exposure to the tech-heavy Nasdaq, the broad-based S&P 500 and a range of smaller, mid-cap companies.
investors can also look to actively managed ETFs, such as iShares Edge MSCI USA Momentum Factor ETF (AMEX:MTUM) or First Trust Dorsey Wright Momentum & Value ETF (DWAQ). These ETFs provide exposure to stock with strong momentum, which can be a great way to capture upside without taking on too much risk.
Finally, investors can consider sector-specific ETFs, such as the Vanguard Consumer Staples ETF (AMEX:VDC) or the iShares U.S. Real Estate ETF (AMEX:IYR). These ETFs provide exposure to specific sectors, allowing investors to benefit from the potential upside of a sector without investing too heavily in any one stock.
investing in the right ETFs is key to a successful 2023. With the right combination of ETFs, investors can benefit from exposure to growth stock, diversification, and low fees. By taking advantage of the current market slump, investors can set themselves up for a successful 2023.
