Top-Performing ETFs in the New Year Surpassed Nasdaq's Performance
Revamped Run on US ETFs:
The year 2023 has seen some fiery action in the US ETF market. Despite the Nasdaq 100 racing ahead by 9.5%, a whopping 14 ETFs have blazed a trail even further. Investor's Business Daily's analysis using Morningstar Direct and MarketSmith shows these 14 actively managed ETFs leaving the Nasdaq 100 in the dust.
The US ETF Race Winners
Sure, the Nasdaq 100 has been on a rollercoaster ride (currently at 9.5%, but it was 8.32% during evaluation), but it seems that these shrewdly managed ETFs are streaking ahead. "After years of skepticism, risky stock investments are back in the limelight. Investors sense that they'll reap rewards if inflation cools and the Fed eases the interest rate throttle," throws in Todd Rosenbluth, head of research at VettaFi.
Among the big fish stirring up a storm is Cathie Wood, whose ARK Innovation ETF has won an eye-popping 19% this year. However, it's worth noting that European investors can't trade the ARK ETF, but it's still kicking major goals.
Coming in a close second is the Invesco S&P 500 High Dividend Low Volatility UCITS ETF, tradeable in Germany, and the relatively obscure Renaissance IPO Fund, which, while not totally accessible to German investors, is still worth a mention. But the VanEck Morningstar Wide Moat ETF, with its focus on companies boasting a 'moat', has also outstripped the Nasdaq and is tradeable in Germany.
By all means, if some US products don't cross borders, don't get bummed out. You can still bag a 10% gain with an ETF like the Amundi Nasdaq 100 UCITS ETF EUR (C) on the Nasdaq or an ETF (iShares TecDAX UCITS ETF (DE)) on the German TecDax.
By the by: Warren Buffett-approved stocks with hefty dividends, eyebrow-raising stock buybacks, and skyrocketing prices are causing a stir as well.
Elsewhere in the ETF Universe
For 2023, digging up the top-performing US ETFs means mining for gemstones across various sectors and strategies. Here's a peek at some promising US ETFs that might be up for grabs in Germany:
- Vanguard S&P 500 Value ETF (VOOV): Locks in on large-cap value stocks in the S&P 500, offering a taste of established companies with more affordable valuations compared to growth darlings.
- Vanguard U.S. Dividend Appreciation ETF (VIG): Grabs attention with a dividend grow strategy, housing companies that have a long history of upping their dividend payouts, which can be pretty attractive in uncertain times.
- Vanguard High Dividend Yield ETF (VYM): Serves up a portfolio of high-dividend stocks, which are typically popular due to their income appeal.
- Vanguard Russell 2000 ETF (VTWO): Opens up the small-cap segment of the US market, granting a wide-ranging look at small-cap stocks.
- Vanguard U.S. Quality Factor ETF (VFQY): Settles its gaze on companies with robust earnings and a healthy balance sheet, which can be enticing during rough economic seas.
- Investors, sensing potential rewards if inflation levels decrease and the Fed eases monetary policies, are focusing on ETFs in 2023, with the Vanguard S&P 500 Value ETF (VOOV) being one such option.
- Despite the ARK Innovation ETF not being tradable in Germany, it has still achieved impressive gains in 2023, highlighting the importance of innovation in finance and investing.
- The VanEck Morningstar Wide Moat ETF, with its focus on companies boasting a 'moat', has outperformed the Nasdaq in 2023 and is tradeable in Germany, demonstrating the potential of investing in stable companies.
- For German investors, daily investing opportunities exist in US ETFs like the iShares TecDAX UCITS ETF (DE), which can offer significant gains, as confirmed by Warren Buffett's favor for stocks with hefty dividends, stock buybacks, and rising prices.
