THE KIPLINGER ETF 20 BACK IN THE BLACK
Kiplinger's Personal Finance|September 2023
Our favorite exchange-traded funds are on the upswing. Here's how to make the most of your ETF portfolio.
NELLIE S. HUANG
THE KIPLINGER ETF 20 BACK IN THE BLACK

The scars we suffered during 2022's bear market are on the mend. After losing 18.1% in 2022, the S&P 500 has clawed its way back to a 16.9% gain so far in 2023. Bonds are clambering up, too. The Bloomberg U.S. Aggregate Bond index, a broad bond market barometer, returned 2.1% over the first six months of 2023, after a 13.0% loss in 2022. (All returns in this story are through June 30, unless otherwise noted.) And the bear? It’s gone, at least technically speaking, because the broad stock market benchmark has gained more than 20% from its bottom in October 2022.

The funds in the Kiplinger ETF 20, the list of our favorite exchange-traded funds, are recovering, too. Most of our picks have regained enough ground since the start of the year to push their one-year returns into positive territory. All told, in this, our annual review of the ETF 20, things look a lot better than a year ago, when all but two of our funds (Schwab U.S. Dividend Equity and Invesco Optimum Yield Diversified Commodity Strategy No K-1) sported negative one-year returns.

Meanwhile, the ETF industry continues to evolve. Though total net assets in ETFs dropped in 2022 to $6.5 trillion, compared with $7.2 trillion the previous year, 12% of all U.S. households now own ETFs. And ETFs accounted for 30% of daily U.S. stock market trading activity in 2022, up from 25% in 2021. “We’ll get to a point where generations of investors don’t treat ETFs as new or unique or even particularly clever,” says Ben Johnson, of investment research firm Morningstar, who formerly directed ETF research for the firm and now works with asset managers as they build out and bolster their ETF offerings. “They’re going to be ETF natives the way our kids are tech natives.”

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM KIPLINGER'S PERSONAL FINANCEView all
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 mins  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 mins  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 mins  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 mins  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 mins  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 mins  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 mins  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ mins  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 mins  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 mins  |
December 2024