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Top ETF Stories of 2023

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  • (1:30) - Should Investors Worry About The Magnificent 7 Dominance?
  • (6:30) - Breaking Down The Recent Rally of Small Cap Stocks
  • (9:00) - Will Investors Reduce Their Exposure To Money Market Funds Anytime Soon
  • (11:55) - What Should Investor Know About The Current ETF Flow Trends?
  • (15:05) - Why Is So Much Money Being Put Into Bond ETFs Right Now?
  • (19:00) - The Rise In Active ETFs: Should You Be Buying?
  • (22:40) - Creating A Strong Watchlist Heading Into The New Year
  • (28:40) - Episode Roundup: MAGS, CHAT, EQAL, XLI, AVUV, DXJ, EWJ
  •                 Podcast@zacks.com

 

 

In this episode of ETF Spotlight, I speak with Todd Sohn, Managing Director, ETF & Technical Strategy at Strategas Securities, about some of the key market trends that shaped the year.

The biggest market story of the year is the outsized role of the Magnificent Seven stocks in the market rally. Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) , NVIDIA (NVDA - Free Report) , Meta Platforms (META - Free Report) and Tesla (TSLA - Free Report) now account for almost 29% of the S&P 500.

Should investors worry about the dominance of these stocks? ETFs like the Invesco Russell 1000 Equal Weight ETF (EQAL - Free Report) and the Industrial Select Sector SPDR ETF (XLI - Free Report) are worth a look if you're concerned about tech exposure in the S&P 500 index.

We saw a broadening of the market rally in November and some previously beaten-down areas like small caps performed quite well. Todd likes actively managed small-cap ETFs like the Avantis U.S. Small Cap Value ETF (AVUV - Free Report) and the Dimensional U.S. Small Cap ETF (DFAS - Free Report) .

Investors have poured about $1 trillion into money market funds over the past year, lured by yields nearing 5% with very little risk. It remains to be seen whether some of this money will be withdrawn as investors chase the equity rally.

Another significant theme this year is the rise of active ETFs, which have captured a disproportionate share of inflows. Despite their uninspiring performance, bond ETFs have also attracted substantial inflows in 2023.

2023 has been a banner year for ETF launches, on track to surpass the all-time annual record of 475 set in 2021. We discuss some intriguing new ETFs worth exploring.

Tune in to the podcast to learn more.

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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