April 2023 Edition: This list of the best exchange-traded funds (ETFs) to buy for 2023 features diversified funds. We've further fine-tuned the list to include ETFs that offer exposure to various sectors, including technology, healthcare, and consumer goods. These ETFs have been carefully selected based on their past performance, expense ratios, and overall diversification.
One of the top ETFs to consider is the Vanguard Total Stock Market ETF (AMEX:VTI), which offers broad exposure to the entire U.S. stock market. This ETF tracks the CRSP US Total Market Index and has a low expense ratio of 0.03%. Another option is the iShares Core S&P 500 ETF (AMEX:IVV), which tracks the S&P 500 index and has an expense ratio of 0.03%.
Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. These ETFs invest in companies that are involved in virtual and augmented reality, gaming, and other related technologies. Some of the top metaverse ETFs to consider are the Roundhill Ball Metaverse ETF (NASDAQ:META), the Global X Metaverse ETF (NASDAQ:META), and the Amplify Transformational Data Sharing ETF (AMEX:BLOK).
For those interested in dividend investing, the iShares Select Dividend ETF (NASDAQ:DVY) is one of the best options for 2023. This ETF tracks the Dow Jones U.S. Select Dividend Index and invests in companies with a history of paying consistent dividends. Another top dividend ETF to consider is the Schwab U.S. Dividend Equity ETF (AMEX:SCHD), which has a low expense ratio of 0.06%.
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 (AMEX:IWM) tracks the Russell 2000 index and invests in small-cap companies in the U.S. Another option is the Vanguard Small-Cap ETF (AMEX:VB), which has a low expense ratio of 0.05%.
The Federal Reserve has furiously raised interest rates throughout 2022 and into 2023 as it tries to rein in high inflation. In response, investors can consider investing in Treasury bond ETFs, such as the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) or the Vanguard Long-Term Treasury ETF (NASDAQ:VGLT). These ETFs invest in long-term U.S. Treasury bonds and can provide a hedge against rising interest rates.
These top-rated ETFs and mutual funds can bring balance to portfolios with off-kilter asset allocations. The Invesco S&P 500 Equal Weight ETF (AMEX:RSP) invests in all the companies in the S&P 500 index, but with equal weighting, rather than market capitalization weighting. This can provide more balanced exposure to large-cap stocks. Another option is the iShares MSCI EAFE ETF (AMEX:EFA), which invests in international stocks in developed markets outside of the U.S.
Growth ETFs are a good option if you want exposure to companies that are growing faster than the overall market. Some of the best growth ETFs to consider are the Vanguard Growth ETF (AMEX:VUG), the iShares Russell 1000 Growth ETF (AMEX:IWF), and the SPDR Portfolio S&P 500 Growth ETF (AMEX:SPYG).
Growth has made a huge comeback after a miserable 2022. Vanguard, iShares, and SPDR ETFs are among the best for investing in this theme. These ETFs invest in companies with high earnings growth potential and can provide long-term capital appreciation.
The first four months of 2023 proved to be very positive for gambling stocks. Two of the most popular ETFs that invest in companies in the gambling and entertainment industries are the VanEck Vectors Gaming ETF (NASDAQ:BJK) and the Roundhill Sports Betting & iGaming ETF (AMEX:BETZ). These ETFs can provide exposure to companies that are benefiting from the growth of online gambling and sports betting.
Overall, there are many ETFs to choose from for investors looking to build a well-diversified portfolio in 2023. By considering the themes and sectors that are likely to perform well in the coming year, investors can position themselves for long-term success. In this article, we have highlighted some of the best ETFs to consider, but it's important to do your own research and consult with a financial advisor before making any investment decisions.
