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When considering the future of their investments, many investors consider the SPDR S&P 500 ETF Trust (spy) or Vanguard Total World Stock ETF (VT), allowing maximum market exposure in one convenient package. But word from Norway’s sovereign wealth fund suggests this may not be a great year for the market as a whole. Nicolai Tangen, CEO of Norges Bank Investment Management Services, said the group was “not very optimistic about earnings.”
Tangen noted that the inflationary pressures currently facing markets are not only likely to be worse than expected, but also likely to persist for a long time. Tangen also expects international central banks to repeat their previous mistakes in the opposite direction: “They raised rates too late, so they will be very, very cautious about cutting rates too quickly.” he pointed out.
A fundamentally shaken market
So is he right? After all, isn’t this the year of ETFs? He’s got some points, but this year is different than usual. First, Bitcoin ETFs are coming online. This is the first investment I’ve ever seen. Second, a growing number of investors are converting from mutual funds to ETFs, suggesting new sources of investment. But with some considering more ETF closures in 2024 and launches looking to gain momentum as well, this could end up being a year unlike any other. unpredictable and therefore impossible to predict.
Which ETF is the best buy?
If you look at Wall Street and look at the two major ETFs, the SPDR S&P 500 ETF Trust and the Vanguard Total World Stock ETF, you’ll see that SPDR is at least somewhat ahead of the curve. The average price is $476.68 per share, the annualized return is 21.44%, and the expense ratio is 0.09%. Meanwhile, VT had a return of 15.01% and an expense ratio of 0.07%.
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