Want to invest $10,000? Here are 5 ETFs to buy and hold right now, say pros | Wilnesh News
As markets continue to be volatile due to economic uncertainty, many investors are taking a longer-term view and looking to exchange-traded funds (ETFs) to allocate their portfolios. CNBC Pro asked several financial experts about their top ETFs to buy and hold this year. Vanguard Total World Stock ETF Vanguard Total World Stock ETF (VT) should be a core holding for any long-term investor, said Vahan Janjigian, chief investment officer at Greenwich Wealth Management. “It’s basically a global index ETF that gives you tremendous diversification at a very low cost,” he said. “If you’re a new investor in your 20s, just starting out… I think this is a good ETF. You can hold it for the long term.” Janjigian, whose firm manages more than $2 billion in client assets, also recommends Buy ETFs through a dollar-cost averaging strategy. For example, this means investing monthly rather than allocating one lump sum. “Put the same amount of money every month and forget about it.” Janjigian prefers global stock ETFs to S&P 500 index funds for a diversified portfolio, noting that the S&P 500 “has a strong focus on large-cap stocks.” The weight is very large.” The top 10 stocks in the U.S. benchmark account for nearly a third of the index. “You’re not really diversifying because of the market cap weighting,” he added. VT 1Y Line However, Ursula Marchioni, head of markets and portfolio solutions for Europe, the Middle East and Asia at BlackRock, believes global indexes are unlikely to rise in sync in the short term. Instead, she suggested a more liquid distribution approach would benefit investors. “In this new investment regime, granularity is becoming increasingly important – we don’t envision a macro backdrop that is conducive to gains across all markets,” she said. Marchionne advocates “quality core” investing through industries such as healthcare and technology, combined with cyclical investments in the financial and energy sectors. Marchionne also added that she would likely revisit her allocation choices frequently, “especially in a year when geopolitical drivers increase.” SPDR MSCI USA Value ETF For investors worried about rising valuation multiples on tech stocks and looking for a value tilt, Ian Rees, co-head of multi-manager funds at Premier Miton Investors, favors the SPDR MSCI USA Value ETF (UVAL-GB). “The value style of investing in this market has fallen out of favor over the years as the U.S. stock market has grown and taken advantage of, driven by the proliferation of technology and artificial intelligence names,” Rees noted. However, “In the long run, following the buy The value principle of cheap companies has proven to be an effective way to compound wealth, although it has struggled during market bubbles or narrow market leadership,” he added. Rees believes the current backdrop provides an “excellent entry point” for value strategies. The MSCI U.S. Value Index, which targets U.S. and European investors, has gained 14% this year, outperforming the S&P 500. Over the past five years, investors in this ETF have typically earned an annual compound return of 7.8%. Invesco Nasdaq Biotech ETF For investors who want exposure to growth stocks, Rees likes the Invesco Nasdaq Biotech ETF (SBIO-GB) in the biotech sector. “Biotech stocks have depreciated significantly over the past few years, causing valuations to look quite low when viewed against a historical backdrop,” he said. However, Rees said longer-term trends in an aging population and more personalized medicine have kept the growth story intact. “This is creating a wave of investment opportunities and eliciting a lot of positive comments from biotech managers,” he added. The Invesco Nasdaq Biotech ETF, which trades on U.S. and European exchanges, fell 1.5% this month, versus this year. flat. L & G Clean Water ETF Rees, whose firm manages more than $12.6 billion in assets, also highlighted the L & G Clean Water ETF (GLUG-GB) for investors interested in environmental investments. Amid growing global water shortages, this ETF provides investment opportunities in companies involved in clean water solutions. “With many of the index’s valuations still broadly in line with world indices, this is another area of growth that doesn’t require investors to pay high valuations,” he said. The ETF trades on the London Stock Exchange under the ticker GLUG , has risen nearly 3.5% this year. The fund’s $415 million is invested in 53 stocks on the Solactive Clean Water Index. Vanguard FTSE 250 ETF Finally, Rees sees opportunity in the unpopular UK market with the Vanguard FTSE 250 ETF (VMID-GB), which tracks UK mid-cap companies. “There is a lot of negative sentiment surrounding the perception of the UK as the poorest economy in Europe, but this perception has been tempered by UK macro data showing improving business confidence in recent months showing the UK economy is outperforming its European neighbours,” Rees said. Overlooked by a lot of people.” The $2 billion Vanguard ETF, also available to German investors (VMID-DE), has been relatively solid this year. The annual return over the past five years has been 3.45%. However, it also pays a dividend, with a yield of 3.3%. He added: “While the UK market generally has great valuation attractiveness, what is most attractive to us is the UK mid-market space covered by the FTSE 250 index.”
