They’re easy to buy and sell on Vanguard and Charles Schwab platforms. Last year alone, ETFs took in about US$600 billion ($792 billion), while mutual funds lost nearly US$1 trillion. According to industry experts, here are some of the best ETFs for retail investors in 2023.
In the rough year ahead, bonds might be one of the only bright spots. It would mark a dramatic turnaround from 2022, when bonds fell alongside almost every other asset class, posting their worst year in a generation. The miserable year for investors — which saw US stocks and Treasuries both suffer double-digit declines for the first time since at least 1872 — was the result of the Federal Reserve aggressively hiking interest rates in an attempt to tame inflation.
While the Fed is expected to keep raising rates this year, potentially triggering a recession, bonds may be in for some relief, as higher yields help shield investors from potential price declines. For retail investors, exchange-traded funds provide a simple way to invest in diversified bond portfolios. Compared to other investment vehicles like mutual funds, they’re often cheaper and more tax efficient.
