See It Market: 2023 ETF Trends - What Investors Should Look Out For
Read the full article on See It Market.
- Declines across asset classes in 2022 may be a net positive for ETFs as investors repair and retool their portfolios
- Areas away from the S&P 500 are capturing flows while high yields in the Treasury market attract record-high idle cash
- At the same time, advisors may rethink how they allocate capital in 2023 given favorable relative costs and the tax benefits of ETFs versus SMAs
- With so many moving pieces, monitoring ETF trends will be key this year along with managing risk in the space
Last year’s market pain was ETFs’ gain. Big-time tax-loss harvesting allowed investors to sell losing mutual fund positions and purchase similar, often lower-cost, ETFs to improve their portfolios. It’s yet another tailwind for the ETF industry. Also consider that significant stock and bond market declines have not seemed to ding folks’ plans to continue putting money to work in various asset classes. According to one survey, 65% of retail investors intend to stick with their investment plans in 2023 while 29% expect to increase allocations.¹