Investing in exchange traded funds (ETFs) is a popular way to diversify a portfolio. ETFs are funds that hold a basket of stocks, bonds, or other assets and can be traded throughout the day on an exchange. As we look forward to the year 2023, there are a few ETFs that stand out as top picks for investors.
The Vanguard Long-Term Bond ETF (AMEX:BLV) is a popular ETF for investors looking to add bonds to their portfolio. This ETF tracks the performance of a market-weighted bond index and has a low expense ratio of 0.69%. It has a wide variety of holdings, from corporate to government bonds. This ETF can be a great way to add some stability to a portfolio.
The Vanguard Small-Cap Value ETF (AMEX:VBR) is another great option for investors looking for potential gains in the stock market. This ETF tracks the performance of a market-weighted index of U.S. small-cap stocks with a focus on value. This ETF is a great way to gain exposure to smaller companies that could have higher growth potential.
BlackRock’s iShares exchange traded funds (ETFs) gained more net flows than Vanguard’s ETFs last year, making it a great option for investors in 2023. iShares offers a wide variety of ETFs that track different asset classes, such as domestic and international stocks, bonds, commodities, and more. iShares ETFs can be a great way to diversify a portfolio.
Bond funds may provide the brightest opportunities in the bleak year ahead, experts say. RF markets green. Source: maciek905/Getty Images. Bond ETFs are a great way to gain exposure to the bond market without having to buy individual bonds. One popular ETF is the iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT), which tracks the performance of a market-weighted index of U.S. Treasury bonds with maturities of 20 years or longer. This ETF can be a great way to get exposure to the bond market with low fees.
For the year, dividend ETFs were the top performers. Those include WisdomTree US High Dividend (AMEX:DHS), Invesco S&P Ultra Dividend Revenue (AMEX:RDIV), and more. These dividend ETFs are a great way to get exposure to stocks that have a history of paying high dividends and can be a great way to get income from your portfolio.
A growth ETF is a fund that only includes stocks with the potential for above-average growth. The Vanguard Growth ETF (AMEX:VUG) aims to track the performance of a market-weighted index of U.S. large-cap stocks with a focus on growth. This ETF can be a great way to gain exposure to stocks with higher growth potential.
Two top semiconductor stocks and one ETF for 2023 are Nvidia, AMD, and Invesco Semiconductor ETF (SOXX). These stocks and ETF can be a great way to gain exposure to the semiconductor industry, which has the potential for high growth in the coming year.
The three best ETFs to buy for 2023 are VTI (Vanguard Total Stock Market Index Fund ETF), TLT (iShares 20 Plus Year Treasury Bond ETF), and RYE (Invesco S&P 500 Equal Weight Energy ETF). These ETFs can be a great way to gain exposure to a wide variety of asset classes, such as stocks, bonds, and commodities.
Finally, nine of the best energy ETFs to buy now for 2023 are XLE (Energy Select Sector SPDR Fund), RYE (Invesco S&P 500 Equal Weight Energy ETF), and VanEck Oil (AMEX:VDE). These ETFs can be a great way to gain exposure to the energy sector, which is expected to be volatile in the coming year.
A graph showing the performance of various ETFs in 2023.
