Are these the best U.S. ETFs to watch in 2023?

List of U.S. ETFs to watch

Data as of 10 July 2023. Source: Google Finance, VettaFi.

 *The list of funds mentioned is ranked by year-to-date returns. When deciding what ETFs to feature, we analyse the financials, recent news, the state of the industry, and whether or not they are actively traded on Stake.

See if these are the best U.S. ETFs to add to your watchlist

1. Bitwise Crypto Innovators ETF ($BITQ)

Assets under management (AUM): US$94.8m

ETF price (as of 10/07/2023): US$9.73

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023): 62% / 38%

The Bitwise Crypto Innovators ETF (BITQ) is an ETF that focuses on providing investors with exposure to the cryptocurrency industry. It invests in companies involved in cryptocurrency mining, decentralised finance (DeFi), blockchain technology, and digital asset exchanges.

BITQ allows investors to gain diversified exposure to the growing cryptocurrency market without the need to directly invest in individual cryptocurrencies. The fund offers a convenient and regulated way to participate in the potential growth of the cryptocurrency industry. With cryptocurrencies becoming increasingly popular and mainstream, investors may consider BITQ as a means to gain exposure to this emerging and potentially high-growth sector.

2. ARK Fintech Innovation ETF ($ARKF)

Assets under management (AUM): US$915.2m

ETF price (as of 10/07/2023): US$21.41

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023): 53% / 47%

The ARK Fintech Innovation ETF (ARKF) is an ETF that concentrates on investing in companies at the forefront of financial technology (fintech) innovation. ARKF includes businesses involved in digital wallets, mobile payments, peer-to-peer lending, blockchain technology, and other disruptive financial technologies.

By investing in ARKF, individuals can gain exposure to the rapidly evolving fintech sector, which is disrupting traditional financial services. Fintech innovations have the potential to reshape various aspects of finance, and ARKF allows investors to participate in this transformation. With the convenience of trading on the stock market, ARKF provides a way for investors to access the fintech sector within a diversified portfolio.

3. VanEck Vectors Semiconductor ETF ($SMH)

Assets under management (AUM): US$9.03b

ETF price (as of 10/07/2023): US$151.16

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023):  57% / 43%

The VanEck Vectors Semiconductor ETF (SMH) is one of the best-performing sector ETFs of 2023. It is an exchange-traded fund that invests in companies within the semiconductor industry. It includes semiconductor manufacturers, equipment suppliers, and other related businesses. SMH provides investors with exposure to the performance of the semiconductor sector, which is integral to technological advancements in various industries.

As demand for electronic devices and emerging technologies such as artificial intelligence and autonomous vehicles continues to grow, semiconductors play a critical role. Investors seeking to capitalise on the potential growth of the semiconductor industry may consider SMH as a means to access a diversified portfolio of semiconductor companies. 

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4. Roundhill MEME ETF ($MEME)

Assets under management (AUM): US$1.1m

ETF price (as of 10/07/2023): US$38.54

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023): 80% / 20%

The Roundhill Meme Stock Tracker ETF (MEME) is designed to track the performance of "meme stocks," which are stocks that have gained significant attention and popularity on social media platforms. The ETF invests in companies that have experienced viral or meme-driven investor interest, often driven by online communities.

By investing in MEME, individuals can gain exposure to these unique market dynamics and potentially benefit from the momentum and volatility associated with meme stocks. It offers an opportunity for investors to gain exposure to companies that have captured the attention of retail investors and experienced rapid price movements based on speculative market sentiment.

Meme stocks are very volatile and risky, and retail investors can experience losses if all the hype comes crashing down. Spend time thoroughly checking the financials of the companies in this ETF before making financial decisions.

5. iShares U.S. Technology ETF ($IYW)

Assets under management (AUM): US$12.7b

ETF price (as of 10/07/2023): US$107.60

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023): 62% / 38%

The iShares U.S. Technology ETF (IYW) seeks to track the performance of U.S. tech stocks. Its top holdings are companies involved in software development, hardware manufacturing, telecommunications, and internet services.

With advancements in technology driving innovation and disrupting traditional industries, investing in IYW provides the potential to benefit from the growth of leading tech companies. As technology continues to play a significant role in our daily lives, IYW offers a diversified portfolio of companies at the forefront of the tech sector. 

6. Roundhill Ball Metaverse ETF ($METV)

Assets under management (AUM): US$492.7m

ETF price (as of 10/07/2023): US$10.35

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023): 52% / 48%

The Roundhill Ball Metaverse ETF is designed to capture the potential growth of the metaverse industry. It invests in companies involved in virtual reality (VR), augmented reality (AR), and other related technologies that form the foundation of the metaverse concept.

By investing in METV, individuals can gain exposure to the evolving landscape of the metaverse, which encompasses virtual worlds, immersive experiences, and digital economies. The Roundhill Ball Metaverse ETF offers investors an opportunity to participate in the potential growth of this nascent industry as it continues to shape the future of technology and digital interaction. METV is one of the more popular metaverse ETFs.

7. ARK Innovation ETF ($ARKK)

Assets under management (AUM): US$7.76b

ETF price (as of 10/07/2023): US$45.37

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023):  57% / 43%

The ARK Innovation ETF (ARKK) is an ETF that focuses on capturing the potential growth of disruptive innovation across various sectors. It invests in companies involved in genomic research, automation, artificial intelligence (AI), robotics, and other innovative technologies.

ARKK offers investors exposure to high-growth potential sectors that are driving transformative changes in the global economy. By investing in ARKK, individuals can participate in the success of groundbreaking companies at the forefront of innovation.

🆚 Compare these ETFs: ARKK vs BOTZ→

8. iShares U.S. Home Construction ETF ($ITB)

Assets under management (AUM): US$2.31b

ETF price (as of 10/07/2023): US$84.14

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023):  60% / 40%

The iShares U.S. Home Construction ETF (ITB) invests in companies involved in the residential construction industry. It includes home builders, building materials manufacturers, and companies engaged in the distribution and sale of home construction products.

ITB offers investors exposure to the housing market and potential growth in the home building industry. As the demand for housing continues to rise, ITB provides an opportunity to invest in companies that benefit from this trend.

9. Global X Robotics & Artificial Intelligence ETF ($BOTZ)

Assets under management (AUM): US$2.46b

ETF price (as of 10/07/2023): US$28.57

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023):  82%/ 18%

The Global X Robotics & Artificial Intelligence ETF (BOTZ) focuses on companies involved in robotics and artificial intelligence (AI) technologies. It invests in businesses engaged in industrial automation, robotics manufacturing, AI software development, and related areas.

BOTZ offers exposure to the potential growth of these transformative technologies. As robotics and AI continue to advance and find applications across various industries, BOTZ allows investors to participate in this evolving and exciting sector.

10. Vanguard Mega Cap Growth ETF ($MGK)

Assets under management (AUM): US$13.93b

ETF price (as of 10/07/2023): US$232.38

Stake Platform Bought / Sold (1 Jan 2023 - 10 Jul 2023): 53% / 37%

The Vanguard Mega Cap Growth ETF (MGK) seeks to track the performance of a large-cap growth index. Growth indexes like this one select large-cap growth stocks in the U.S. stock market.

By investing in MGK, individuals can gain exposure to well-established companies with strong growth potential at a low cost. As mega-cap growth stocks historically have the potential to deliver significant returns, this growth fund provides investors with an opportunity to participate in the success of these large, growth-oriented companies.

How to invest in U.S. ETFs?

Want to start buying American ETFs, but not sure how? Learn how to buy U.S. ETFs on the Stake investing platform below.

1. Find a stock investing platform

To buy shares in U.S.-listed ETFs, you'll need to sign up to a broker with access to the U.S. stock market, where these ETFs trade. There are a number of online investing platforms in Australia, of which Stake is one.

2. Fund your account

Complete an application with your personal and financial details. Fund your brokerage account with a bank transfer, debit card or even Apple/Google Pay.

3. Search for an ETF

Find the desired index fund by name or ticker symbol. Do your own research to ensure it is the right investment product for your own circumstances.

4. Choose an order type and buy ETF shares

Buy on any trading day with a market order or use a limit order to delay your purchase of the ETFs shares until it reaches your desired price. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.

5. Monitor your investment

Optimise your portfolio by tracking how your stock and the business perform with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your stock.

✅ Gain access to U.S. ETFs from $3 brokerage when you sign up to Stake.

Should you buy and hold ETFs?

There’s no single answer to whether investors should buy and hold ETFs (investors might be interested in consulting with a financial advisor for that). But there are a few guidelines for financial success that have held throughout the decades.

Historically, bonds and stocks have shown an extremely positive performance over the long run, and they should be considered when building a diversified investment portfolio.

Some of the most traded index funds are the ones that invest in the S&P 500, such as the SPDR S&P 500 ETF Trust ($SPY), the iShares Core S&P 500 ETF ($IVV), or the Vanguard S&P 500 ETF ($VOO).

Index funds that invest in the broad U.S. market like the Vanguard Total Stock Market ETF ($VTI) or the Schwab Total Stock Market Index Fund ($SWTSX) are also popular, while the Invesco QQQ Trust Series I ($QQQ) is a popular option for those looking to invest in tech stocks, as it replicates the Nasdaq 100 index. Check out more popular Nasdaq ETFs on Stake and learn how to invest in the Nasdaq in a few simple steps.

When it comes to bonds, ETFs such as the Vanguard Total Bond Market ETF ($BND) and iShares Core U.S. Aggregate Bond ETF ($AGG) are among the two largest exchange-traded funds in the world. The Vanguard FTSE Emerging Markets ETF ($VWO) and the iShares Core MSCI Emerging Markets ETF ($IEMG) are popular choices for those looking to diversify their investment portfolio beyond developed markets. Commodity ETFs like Invesco DB Commodity Index Tracking Fund ($DBC) could also be considered as a way to diversify beyond equities and bonds.

It is important to remember if you invest in ETFs, find ones that are low cost, with a low expense ratio, as management fees can severely hamper returns, especially in a challenging market environment.

This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.