The Best Global ETFs to Watch in 2023 - Which Funded (2024)

Introduction to ETF Investing

Investing in Exchange Traded Funds (ETFs) has gained significant popularity among investors of all levels of experience. ETFs offer a convenient and cost-effective way to gain exposure to a diversified range of investments, providing the trading liquidity of equities with the benefits of diversification typically associated with mutual funds.

Advantages of ETF Investing

ETFs offer several advantages that make them an attractive investment option:

1. Diversification: ETFs allow investors to gain exposure to a wide range of assets, such as stocks, commodities, and bonds, through a single investment. This diversification helps to spread risk and can potentially enhance returns.
2. Liquidity: ETFs are traded on stock exchanges, which means they can be bought and sold throughout the trading day at market prices. This liquidity provides investors with flexibility and the ability to enter or exit positions easily.
3. Cost Efficiency: ETFs generally have lower expense ratios compared to actively managed mutual funds. This is because ETFs are passively managed and aim to track a specific index rather than actively selecting and managing individual securities. Lower expenses can contribute to higher net returns for investors.
4. Transparency: ETFs disclose their holdings on a daily basis, allowing investors to see exactly what assets they own. This transparency helps investors make informed decisions about their investments.

Top Global ETFs to Consider

1. iShares Core S&P 500 ETF (Ticker: IVV):This ETF aims to track the performance of the S&P 500 index, which includes 500 of the largest publicly traded companies in the United States. The S&P 500 is often considered a benchmark for the overall U.S. stock market. IVV has a low expense ratio and provides broad exposure to the U.S. market.
2. ROBO Global Artificial Intelligence ETF (Ticker: ROBO):This ETF focuses on companies involved in robotics, automation, and artificial intelligence (AI). It seeks to capitalize on the growing trend of technological advancements in these areas. ROBO offers exposure to various sectors, including manufacturing, healthcare, and consumer electronics.
3. iShares UK Dividend UCITS ETF (Ticker: IUKD):This ETF targets high-dividend-yielding companies in the United Kingdom. It provides investors with exposure to a diversified portfolio of UK companies with a strong history of paying dividends. IUKD is suitable for income-seeking investors looking for potential dividend income and long-term capital appreciation.
4. ARK Innovation ETF (Ticker: ARKK):Managed by Cathie Wood’s ARK Invest, this ETF focuses on disruptive innovation and emerging technologies. It invests in companies involved in genomics, robotics, fintech, and other innovative sectors. ARKK has gained attention for its performance and its active management approach.
5. Procure Space ETF (Ticker: UFO):This ETF targets companies involved in space-related industries, including satellite communications, aerospace, and defense. It provides exposure to the growing commercialization of space and the advancements in space technology. UFO offers investors an opportunity to participate in the potential growth of the space industry.

Considerations for ETF Investing

While ETFs offer many benefits, it’s important to consider certain factors before investing:

1. Expense Ratio:Evaluate the expense ratio, which represents the annual fees charged by the ETF provider. Lower expense ratios are generally more favorable for long-term investors.
2. Liquidity:Assess the trading volume and liquidity of an ETF. Higher liquidity can result in tighter bid-ask spreads and easier execution of trades.
3. Tracking Error:Consider the ETF’s ability to closely track the performance of its underlying index. A lower tracking error indicates better alignment with the index’s returns.
4. Risk Profile:Understand the risk associated with the ETF’s underlying assets. Some ETFs may be more volatile or subject to specific risks, such as sector concentration or currency risk.

Addressing Common Queries

1. How can I invest in ETFs?
Investing in ETFs is similar to investing in stocks. You can buy and sell ETFs through a brokerage account. It’s essential to open an account with a reputable brokerage that offers access to a wide range of ETFs.

2. Are ETFs suitable for long-term investing?
Yes, ETFs can be suitable for long-term investing. They provide diversification and the potential for long-term capital appreciation. However, it’s important to carefully select ETFs that align with your investment goals and risk tolerance.

3. Can I invest in global ETFs from any country?
In general, most ETFs are accessible to investors from various countries. However, certain ETFs may have restrictions or may not be available in certain jurisdictions. It’s advisable to check with your local regulatory authorities or consult with your financial advisor to ensure compliance with local regulations.

4. What are the taxconsiderations for investing in global ETFs?
Tax considerations for investing in global ETFs can vary depending on your country of residence and the tax laws in that jurisdiction. It’s important to consult with a tax professional or financial advisor to understand the tax implications of investing in global ETFs, including potential withholding taxes, capital gains taxes, and reporting requirements.

Key Takeaways:

• ETFs offer investors a convenient and cost-effective way to gain exposure to a diversified range of assets.
• Consider the advantages of ETF investing, such as diversification, liquidity, cost efficiency, and transparency.
• The iShares Core S&P 500 ETF, ROBO Global Artificial Intelligence ETF, iShares UK Dividend UCITS ETF, ARK Innovation ETF, and Procure Space ETF are among the top global ETFs to consider.
• Before investing in ETFs, evaluate factors such as expense ratios, liquidity, tracking error, and risk profile.
• Address common queries about investing in ETFs, including the process of investing, suitability for long-term investing, accessibility of global ETFs, and tax considerations.
• Seek personalized advice from a financial professional to align your ETF investments with your individual goals and circ*mstances.

Investing in ETFs can be an effective strategy for building a diversified portfolio and participating in various market opportunities. However, it’s important to conduct thorough research, assess your risk tolerance, and seek professional guidance to make informed investment decisions. Happy investing!