What is the best ETF to invest in 2023?
The top ETF of 2023 is iShares Expanded Tech Software Sector ETF (IGV), with a YTD return of 355.22%. Technology ETFs outperformed their peers this year, driven by the widespread adoption of AI and expectations of a soft landing in the economy in 2024.
- BlackRock Flexible Income ETF BINC.
- Schwab High Yield Bond ETF SCYB.
- Vanguard S&P 500 ETF (VOO)
- Schwab U.S. Small-Cap ETF (SCHA)
- Invesco QQQ Trust (QQQ)
- Vanguard High Dividend Yield Index ETF (VYM)
- Vanguard Total International Stock ETF (VXUS)
- Vanguard Total World Stock ETF (VT)
- iShares Core U.S. Aggregate Bond ETF (AGG)
| Symbol | Name | 5-Year Return |
|---|---|---|
| USD | ProShares Ultra Semiconductors | 52.17% |
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 49.28% |
| TECL | Direxion Daily Technology Bull 3X Shares | 45.82% |
| TQQQ | ProShares UltraPro QQQ | 36.25% |
- Invesco QQQ Trust (QQQ).
- Vanguard Growth ETF (VUG).
- iShares Russell 1000 Growth ETF (IWF).
- iShares S&P 500 Growth ETF (IVW).
- Schwab U.S. Large-Cap Growth ETF (SCHG).
- SPDR Portfolio S&P 500 Growth ETF (SPYG).
- iShares Core S&P U.S. Growth ETF (IUSG).
- 9 Safest Index Funds and ETFs to buy in 2024. ...
- Vanguard S&P 500 ETF (VOO -0.51%) ...
- Vanguard High Dividend Yield ETF (VYM -0.26%) ...
- Vanguard Real Estate ETF (VNQ -1.03%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT -0.53%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.15%)
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.
| Symbol | Name | Avg Daily Share Volume (3mo) |
|---|---|---|
| TQQQ | ProShares UltraPro QQQ | 79,416,555 |
| SPY | SPDR S&P 500 ETF Trust | 77,216,766 |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 64,930,887 |
| TLT | iShares 20+ Year Treasury Bond ETF | 49,251,891 |
How much should I invest in ETF per month?
You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.
- Best Index Funds. 3 Yr Returns. 16% - 18%
- Nifty 50. 3 Yr Returns.
- Nifty Next 50. 3 Yr Returns.
- Nifty Midcap. 3 Yr Returns. 24% - 26%
- Nifty Smallcap. 3 Yr Returns.
- Global/US. 3 Yr Returns. 12% - 14%
- Others. 3 Yr Returns. 11% - 13%
iShares Expanded Tech-Software Sector ETF (IGV)
- Private credit.
- Individual stocks.
- Real estate.
- Fine art.
- Debt.
- A business.
- Private startups.
- Cryptocurrencies.
What were the top-performing funds? Top of the list by some margin was the JP Morgan Emerging Europe, Middle East & Africa investment trust, with a one-year return of almost 50%. The Amundi Semiconductor ETF comfortably took second place with a one-year return of 43%, well ahead of the iShares Poland ETF at 35%.
Invesco QQQ Trust ETF (QQQ)
This fund is the top-performing large-cap growth fund in terms of total return over the 15 years to December 2023, according to Lipper. Expense ratio: 0.20 percent. That means every $10,000 invested would cost $20 annually.
U.S. Treasury Bills, Notes and Bonds
Historically, the U.S. has always paid its debts, which helps to ensure that Treasurys are the lowest-risk investments you can own. There are a wide variety of maturities available. Treasury bills, also referred to T-bills, have maturities of four, eight, 13, 26 and 52 weeks.
- High-yield savings accounts.
- Certificates of deposit.
- Money market accounts.
- Treasury bonds.
- Treasury Inflation-Protected Securities.
- Municipal bonds.
- Corporate bonds.
- S&P 500 index fund/ETF.
Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.
- iShares® ESG Advanced MSCI USA ETF.
- Direxion NASDAQ-100® Equal Wtd ETF.
- JPMorgan US Momentum Factor ETF.
- Vanguard Growth ETF.
- Invesco S&P 500® Momentum ETF.
- Vanguard Mega Cap Growth ETF.
- Fidelity Momentum Factor ETF.
What is the most aggressive ETF?
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.80B in assets. In the last trailing year, the best-performing Aggressive ETF was EAOA at 11.30%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
At any given time, the spread on an ETF may be high, and the market price of shares may not correspond to the intraday value of the underlying securities. Those are not good times to transact business. Make sure you know what an ETF's current intraday value is as well as the market price of the shares before you buy.
ETFs can be safe investments if used correctly, offering diversification and flexibility. Indexed ETFs, tracking specific indexes like the S&P 500, are generally safe and tend to gain value over time. Leveraged ETFs can be used to amplify returns, but they can be riskier due to increased volatility.
In many situations, ETFs can be safer than stocks because of their inherent diversification. If you buy shares of a stock and the company performs poorly, the value of your stock goes down. If that's the only stock in your portfolio — or even one of a few — that can be a big blow to your finances.
The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.
