What is the best ETF return 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.
The Fidelity Blue-Chip Growth ETF FBCG has jumped 58.7% in 2023 to become the best-performing U.S. fund, excluding ETNs and leveraged products, according to FactSet data. The WisdomTree U.S. Quality Growth Fund QGRW is up 56.2% this year, while the Invesco QQQ Trust Series I QQQ has risen 55.6% in 2023.
| Symbol | Name | 5-Year Return |
|---|---|---|
| IYW | iShares U.S. Technology ETF | 24.09% |
| XSD | SPDR S&P Semiconductor ETF | 23.47% |
| NAIL | Direxion Daily Homebuilders & Supplies Bull 3X Shares | 23.01% |
| FTEC | Fidelity MSCI Information Technology Index ETF | 22.77% |
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%.
| ETF | Assets | Expense ratio |
|---|---|---|
| Vanguard High Dividend Yield Index ETF (VYM) | $51 billion | 0.06% |
| Vanguard Total International Stock ETF (VXUS) | $63 billion | 0.07% |
| Vanguard Total World Stock ETF (VT) | $33 billion | 0.07% |
| iShares Core U.S. Aggregate Bond ETF (AGG) | $101 billion | 0.03% |
These are VanEck Vectors Semiconductor ETF SMH, Invesco NASDAQ 100 ETF QQQM, Communication Services Select Sector SPDR Fund XLC, Vanguard Mega Cap Growth ETF MGK, and Vanguard Consumer Discretionary ETF VCR.
- Exchange Traded Funds (ETFs) ETFs have grown to become one of the most popular investments. ...
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- Short-term Bonds. ...
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| Symbol | Name | Dividend Yield |
|---|---|---|
| YYY | Amplify High Income ETF | 12.20% |
| QRMI | Global X NASDAQ 100 Risk Managed Income ETF | 12.18% |
| KBWD | Invesco KBW High Dividend Yield Financial ETF | 12.06% |
| GOOY | YieldMax GOOGL Option Income Strategy ETF | 11.90% |
| ETF | Ticker | Annualized 5-year return |
|---|---|---|
| iShares Core S&P 500 ETF | IVV | 15.65% |
| SPDR S&P 500 ETF Trust | SPY | 15.52% |
| Vanguard S&P 500 ETF | VOO | 14.26% |
What is the best growth and income fund for 2023?
Among 2023′s best-performing funds: Baron Fifth Avenue Growth BFTIX, up 57.9%, and Fidelity Blue Chip Growth ETF FBCG, up 57.2%. Gains in both funds were fueled by the massive rally in Nvidia NVDA, which surged 230% this year.
| Growth ETFs | Expense Ratio |
|---|---|
| Vanguard Russell 1000 Growth ETF (VONG) | 0.08% |
| Nuveen ESG Large-Cap Growth ETF (NULG) | 0.26% |
| iShares Morningstar Mid-Cap Growth ETF (IMCG) | 0.06% |
| Vanguard Mid-Cap Growth ETF (VOT) | 0.07% |
Bitcoin has emerged as a standout performer in 2023, overshadowing traditional asset classes such as gold, equities, real estate, and bonds.
| 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 |
- 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.
Bond ETFs saw a resurgence in 2023, as higher yields gave investors good reason to replenish their portfolios with bonds. Taxable-bond ETFs brought in $168 billion of estimated net flows through November, not far off from U.S. equity ETFs' $210 billion, despite a significantly smaller asset base.
The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.
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.
- Private credit.
- Individual stocks.
- Real estate.
- Fine art.
- Debt.
- A business.
- Private startups.
- Cryptocurrencies.
Where to invest $50,000 for 3 years?
If you have $50,000 to invest, there are plenty of good options. You can choose safe investments, like CDs or high-yield savings accounts. Alternatively, you can invest in things like stocks and real estate in the hopes of achieving superior long-term returns.
- Stocks and ETFs.
- Work with a financial advisor.
- Real estate.
- Mutual funds.
- Use a robo-advisor.
- Invest in a business.
- Alternative investments.
- Fixed-income investments.
Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (VOO 1.03%) and the SPDR S&P 500 ETF Trust (SPY 1.05%).
| Symbol Symbol | ETF Name ETF Name | 5 Year 5 Year |
|---|---|---|
| VIG | Vanguard Dividend Appreciation ETF | 12.21% |
| VYM | Vanguard High Dividend Yield Index ETF | 9.46% |
| VYMI | Vanguard International High Dividend Yield ETF | 6.41% |
| VIGI | Vanguard International Dividend Appreciation ETF | 8.26% |
| Dividend ETFs | Dividend Yield |
|---|---|
| Vanguard International High Dividend Yield ETF (VYMI) | 4.39% |
| Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) | 4.55% |
| WisdomTree U.S. SmallCap Dividend Fund (DES) | 2.92% |
| FCF International Quality ETF (TTAI) | 10.38% |
