What are the most interesting ETFs to follow in 2023? Here are some suggestions from the experts.
In the light of the current economic and financial context, which ETFs may be interesting to monitor for 2023?
The year that just ended was the year of commodities, benefiting above all energy stocks during the first half - the best performing ETFs indeed belong to this sector. The second half of 2022, on the other hand, saw a decline in the commodities sector, an event that amplified fears about a global recession. Stocks have fallen far off their highs and investors who have been looking for the market bottom all year have done nothing but lose money.
ETF: which sectors to focus on in 2023?
2023 presents itself as a highly doubtful year for the financial markets: the work of central banks remains a persistent unknown factor and forecasts regarding the future remain very volatile. Currently, interest rates are staying high and central banks have not even hinted at retreating. In summary, it is presumable to expect a 2023 with sustained interest rates and declining inflation.
Given the expectation of an artificial recession with a declining inflation rate and a sustained but not rising interest rate, many investment banking experts are eyeing the equity segment of utility companies with great interest , linked to basic necessities, the bond sector, given the attractive yields of fixed-income securities, and finally the Chinese market, given the different strategy adopted by the central bank.
In 2022 private investors preferred to use ETFs to manage their capital as they are more comfortable and less expensive than mutual funds. Furthermore, compared to other investment vehicles, they are often more efficient also from a tax point of view.
Which ETFs to monitor?
- For the utility sector, the Invesco S&P 500 Low Volatility (SPLV) ETF could gain popularity in 2023. The fund targets less risky sectors within the market such as utilities, basic consumption and health care.
- corporate fixed income ETFs are also very interesting: specifically, according to data from Bloomberg Intelligence, ETFs in this sector in Europe have so far recorded inflows of €29.2 billion this year. The iShares Core € Corp Bond UCITS (IEAC) ETF has seen inflows of $2.3 billion over the past two months, the iShares € Corp Bond SRI UCITS (SUOE), iShares $ Corp Bond UCITS ETF (LQDE) and iShares $ Corp Bond ESG UCITS ETF (SUOA) saw combined inflows of $1 billion.
- Among the Government Bond ETFs categorized as best for 2023 by justETF are the iShares USD Treasury Bond 20+yr UCITS ETF (Dist) for the US sector and for the Eurozone Xtrackers Eurozone Government Bond 25+ UCITS ETF 1C.
- For the Chinese market, one of the most classic and used ETFs is the iShares China Large Cap UCITS ETF , considered one of the best China equity ETFs.
Original article published on Money.it Italy 2023-01-10 14:15:00. Original title: Quali ETF seguire nel 2023?
