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ETF Market Outlook & Investing Strategies for 2023

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  • (0:45) - What Expectations Should Investors Have For 2023?
  • (5:35) - Playing Offense and Defense Using Dividends
  • (13:40) - Finding Opportunities: Should You Be Buying Into Any Beaten Down Industries?
  • (22:00) - Will Bond Investments Be Beneficial For Your Portfolio Heading Into 2023?
  • (29:45) - Record Breaking Year For ETFs: Will This Continue?
  • (34:50) - Episode Roundup: SPYD, STY, SPSM, XSD, SPSB, BILS, TOTL


In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and investing strategies for 2023.

As the Fed signaled plans to raise rates higher than previously expected, concerns about the economy falling into a recession are rising now. However, investors should start positioning their portfolios for next phase of the economic cycle that may start sometime next year.

Since 1948, high-dividend stocks significantly outperformed their low-dividend peers and the broader indexes when CPI inflation was above 3.25%, per State Street research.

The SPDR S&P Dividend ETF (SDY - Free Report) selects companies that have consistently increased their dividend for at least 20 consecutive years. The product is very popular with about $24 billion in assets. Walgreens Boots Alliance (WBA - Free Report) and 3M (MMM - Free Report) are among its top holdings.

The SPDR Portfolio S&P 500 High Dividend ETF (SPYD - Free Report) invests in top 80 high dividend-yielding companies within the broad benchmark. The product charges just 0.07% in fees and has a juicy yield of about 4%.

Investors looking for value in discarded areas of the market could consider the SPDR S&P Semiconductor ETF (XSD - Free Report) and the SPDR Portfolio S&P 600 Small Cap ETF (SPSM - Free Report) .

XSD follows a modified equal-weighting methodology and avoids too much exposure to industry giants like Taiwan Semiconductor (TSM - Free Report) and NVIDIA (NVDA - Free Report) .

The SPDR Portfolio Short Term Corporate Bond ETF (SPSB - Free Report) and the SPDR Bloomberg 3–12 Month T-Bill ETF (BILS - Free Report) present attractive yield opportunities with low duration risk.

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

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

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