ETF Market Outlook and Investment Strategies for 2023

  • (0:45) – What expectations should investors have for 2023?
  • (5:35) – Play offense and defense using dividends
  • (13:40) – Finding Opportunities: Should You Buy in a Downed Industry?
  • (22:00) – Will investing in bonds benefit your portfolio heading into 2023?
  • (29:45) – Record Year for ETFs: Will it Continue?
  • (34:50) – Episode Summary: SPYD, STY, SPSM, XSD, SPSB, BILS, TOTL
  • [email protected]

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 investment strategies for 2023.

Now that the Fed has signaled plans to raise interest rates higher than previously expected, concerns are mounting that the economy is going into recession. However, investors should start positioning their portfolios for the next phase of the economic cycle which could begin sometime next year.

Since 1948, high-dividend stocks have significantly outperformed their low-dividend counterparts and the broader indices when CPI inflation was above 3.25%, according to State Street research.

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

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

Investors looking for value in declining parts of the market should consider the SPDR S&P Semiconductor ETF XSD and the SPDR Portfolio S&P 600 Small Cap ETF SPSM.

XSD follows a custom equal-weight methodology and avoids overexposure to industry giants such as Taiwan Semiconductor TSM and NVIDIA NVDA.

The SPDR Portfolio Short Term Corporate Bond ETF SPSB and the SPDR Bloomberg 3–12 Month T-Bill ETF BILS offer attractive yield opportunities with low maturity risk.

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

Be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected].

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3M Company (MMM): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free stock analysis report

Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report

SPDR S&P Dividend ETF (SDY): ETF Research Reports

SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports

SPDR S&P Semiconductor ETF (XSD): ETF Research Reports

SPDR Portfolio Short Term Corporate Bond ETF (SPSB): ETF Research Reports

SPDR Portfolio S&P 600 Small Cap ETF (SPSM): ETF Research Reports

SPDR Bloomberg 312 Month TBill ETF (BILS): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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