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ETF Investing Strategies for 2023

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  • (1:30) - What Should Investors Expect Heading Into 2023?
  • (6:10) - Should You Be Buying The Dip?
  • (10:50) - Learning To Live With Inflation: How To Invest Around This Theme
  • (17:45) - Positioning Your Portfolio For 2023: Should You Invest In Short or Long Duration TIPS?
  • (25:00) - Good Investment Themes For 2023
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2023. BlackRock, the world’s largest asset manager, offers about 400 US-listed iShares ETFs.

Global stocks benefited from low real interest rates over the past three decades, but the investing regime has changed now with rates expected to stay higher for longer. Value-style and small-cap equities look better positioned in the current environment.

The iShares Russell 1000 Value ETF (IWD - Free Report) is down only about 7% year-to-date, as investors continue to favor “old-economy” companies. Berkshire Hathaway (BRK.B - Free Report) , Johnson & Johnson (JNJ - Free Report) and Exxon Mobil (XOM - Free Report) are the top holdings in the fund.

Investors looking to “buy the dips” could consider the iShares Core S&P SmallCap ETF (IJR - Free Report)   as these stocks are currently trading at the largest discount relative to large-cap equities since 2001.

Inflation is clearly showing signs of moderation lately but is expected to remain well above the central bank’s target. Investors could consider funds like the Shares U.S. Infrastructure ETF (IFRA - Free Report) and the iShares MSCI Global Agriculture Producers ETF (VEGI - Free Report) for hedging against inflation.

Many investors are looking at fixed income ETFs again thanks mainly to yields at levels not seen since the Global Financial Crisis. The iShares 1-3 Year Treasury Bond ETF (SHY - Free Report) and iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB - Free Report) are worth a look.

Tune in to the podcast to learn more about these stocks and ETFs.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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