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As market volatility continues amid economic uncertainty, many investors are taking a long-term view and turning to exchange-traded funds (ETFs) to position their portfolios. CNBC Pro asked several financial experts for their top ETF stocks to buy and hold this year. Vanguard Total World Stock ETF Vahan Janjigian, chief investment officer at Greenwich Wealth Management, says the Vanguard Total World Stock ETF (VT) should be a core asset for long-term investors. . “This is basically a global index ETF that provides a lot of diversification at a very low cost,” he said. “If you’re a relatively new investor in your 20s who are just starting out, I think this is a great ETF to be in. You can hold it for the long term,” said Janjijian, who manages more than $2 billion in client assets. also suggested purchasing ETFs through dollar-cost averaging. This means, for example, investing monthly rather than allocating a one-time lump sum investment. “Invest the same amount every month and forget about it.” Janjijian prefers global stock ETFs over S&P 500 funds for a diversified portfolio, adding that the S&P 500 is “very heavy on large-cap stocks.” ”, he pointed out. The top 10 stocks in the US benchmark account for nearly a third of the index. “It’s not really that diversified because it’s so focused on market capitalization,” he added. VT 1Y Line However, Ursula Marchioni, head of markets and portfolio solutions for Europe, the Middle East and Asia at BlackRock, believes it is unlikely that the world’s broad indexes will rise in unison in the near future. Instead, he suggested a more liquid allocation approach would benefit investors. “granularity is becoming increasingly important in this new investment regime. We are not assuming a macro environment where all markets are profitable,” he said. Marchioni favors a “high quality core” of investments through sectors such as healthcare and technology, combined with cyclical exposure in financials and energy. Marchioni added that the bank is likely to review its allocation choices frequently “especially in years of heightened geopolitical factors.” SPDR MSCI USA Value ETFFor investors concerned about rising valuation multiples in the tech industry and looking for a value tilt, Premier Mitten Ian Rees, co-head of his Investors multi-manager fund, recommends SPDR MSCI USA I support the value ETF (UVAL-GB). “The value investing style in this market has fallen out of favor in recent years, with the rise of high-growth U.S. stocks driven by the surge in the profile of technology and AI,” Reese said. However, “over the long term, following the value discipline of acquiring undervalued companies has proven to be an effective way to compound wealth, but market bubbles and market dominance “It’s difficult when you’re in a tight space,” he added. Rees believes the current situation provides a “great entry point” to a value strategy. The MSCI USA Value Index, available to investors based in the United States and Europe, has risen 14% this year, outperforming the S&P 500. Investors in this ETF have typically earned compound annual returns of 7.8% over the past five years. Invesco Nasdaq Biotech ETF For investors looking for exposure to growth stocks, Reese likes the biotech Invesco Nasdaq Biotech ETF (SBIO-GB). “Biotech stocks have seen significant downgrades in recent years, and as a result, valuations look quite low when judged in historical context,” he said. But Reese said the growth story remains intact due to long-term trends of an aging population and more personalized medicine. “This is creating a wave of investment opportunities and a lot of positive comments from biotech executives,” he added. The Invesco Nasdaq Biotech ETF, which trades on exchanges in the U.S. and Europe, fell 1.5% this month and was flat for the year. L&G Clean Water ETF Lease, which has more than $12.6 billion in assets under management, also highlighted the L&G Clean Water ETF (GLUG-GB) for investors who are committed to environmental initiatives. This ETF provides exposure to companies involved in water solutions at a time of growing global water scarcity concerns. “Many of the valuations within the index are still broadly in line with global index valuations, and this is another area of growth where investors don’t have to pay nosebleed valuations,” he said. Stated. The ETF, which trades on the London Stock Exchange under the ticker GLUG, has gained nearly 3.5% this year. The fund’s $415 million is invested in 53 stocks in the Solactive Clean Water Index. Vanguard FTSE 250 ETF Finally, Rees sees opportunity in the unfashionable UK market through the Vanguard FTSE 250 ETF (VMID-GB), which tracks mid-cap UK companies. Mr Rees said: “The perception that the UK is one of Europe’s sickest economies has caused a lot of negative sentiment, but the UK’s economic outlook in recent months shows that the UK economy is outperforming its European neighbours. “Improving macro data is too often overlooked.” The $2 billion Vanguard ETF (VMID-DE), which is also accessible to Germany-based investors, was relatively flat for the year. Over the past five years, the return has been 3.45% per year. However, the dividend yield is 3.3%. “The overall UK market has a lot to offer in terms of valuation, but for us it is the UK mid-market space covered by the FTSE 250 index that is most attractive,” he added.
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