Top Performing ETFs in Early 2023 Outperform Nasdaq
A Spectacular Start for US ETFs:
Things are looking fantastic for the US tech exchange, Nasdaq, as it's soaring by an impressive 9.5 percent this year. But here's the kicker: a whopping 14 actively traded diversified US ETFs have outperformed the Nasdaq 100! According to a study by Investor's Business Daily utilizing data from Morningstar Direct and MarketSmith, these ETFs are stealing the show.
Let's dive into the top-notch ETFs of 2023.
US ETFs Shining Bright in 2023
While the Nasdaq 100 is already racking up significant gains (currently at 8.32 percent, but climbing to 9.5 percent as we speak), it's the actively managed ETFs that are truly dazzling. As Todd Rosenbluth, head of research at VettaFi put it, "Risktakers have made a comeback as investors believe they'll reap the benefits if inflation backs off and the Fed eases up on the rate hike pressure."
Alas, European investors can't get their hands on the ARK ETF from Cathie Wood, but it's had a stellar start to the year with a nearly 20 percent gain!
Coming in second with more than 13 percent is the Invesco S&P 500 High Dividend Low Volatility UCITS ETF, available for trading in Germany, along with the less accessible Renaissance IPO Fund. However, the VanEck Morningstar Wide Moat ETF, which focuses on companies with a competitive edge, has also outperformed the Nasdaq and is accessible to German investors.
Don't fret if some US products aren't within reach. With an ETF like the Amundi Nasdaq 100 UCITS ETF EUR (C) on the Nasdaq or the iShares TecDAX UCITS ETF (DE) on the German TecDax, you can still pocket a 10 percent return in 2023!
Oh, and here's a tidbit: More dividends, huge stock buybacks, rising prices: This stock is another one that Warren Buffett can't stop praising.
Sources: 1 - Investor's Business Daily, 2 - Vanguard, 3 - State Street Global Advisors
- Focusing on financial investing in 2023, the innovative use of Exchange-Traded Funds (ETFs) is a key area, as demonstrated by the outstanding performance of several US ETFs.
- Amidst the surging Nasdaq, it's the actively managed ETFs that are exhibiting exceptional performance this year, with their success premised on investors' belief in inflation easing and the Fed alleviating rate hike pressure.
- In the competitive arena of ETFs in 2023, the VanEck Morningstar Wide Moat ETF, with its focus on companies having a competitive edge, stands out as a strong performer, accessible to German investors.
- Despite some US ETFs not being accessible to European investors, there are still opportunities to profit from ETFs, such as the Amundi Nasdaq 100 UCITS ETF EUR (C) on the Nasdaq or the iShares TecDAX UCITS ETF (DE) on the German TecDax, promising a 10 percent return in 2023.
