SPECIAL REPORT The Top 7 Stocks for 2024

The 7 Best ETFs to Buy to Cover 2023’s Biggest Investing Opportunities


  • Here are seven of the top ETFs to consider for 2023.
  • Direxion Hydrogen ETF (HJEN): Hydrogen could eventually be an $11 trillion opportunity.
  • ProShares Ultra Nasdaq Biotech ETF (BIB): Biotech is still a top recession-proof trade.
  • ETFMG Alternative Harvest ETF (MJ): The world may be getting closer to full legalization.
  • Global X Cybersecurity ETF (BUG): The U.S. still isn’t prepared for the next cyberattack.
  • VanEck Green Metals ETF (GMET): The green revolution could get red-hot in 2023.
  • Global X Autonomous & EVs ETF (DRIV): A top ETF for the electric vehicle boom.
  • VanEck Semiconductor ETF (SMH): Semiconductor demand is set to increase in the new year.
Best ETFs to Buy - The 7 Best ETFs to Buy to Cover 2023’s Biggest Investing Opportunities

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These are some of the best ETFs to buy and hold heading into New Year 2023. Rather than being completely tied to the ebb and flow of single-stock ideas, you can gain access to a broad number of similar opportunities at a low price.

For example, if I wanted to buy 100 shares of the SPDR S&P Biotech ETF, it would cost me $8,100. I would now have exposure to top biotech stocks. If I were to buy each of those holdings individually, it would cost me far more than $8,100.

Even if I were to just buy 100 shares of Moderna, it would cost me $19,200. In short, it just makes sense to buy ETFs, too, especially in some of the hottest sectors. Here are seven more ETFs to buy that offer just as much diversification at a low cost.

HJEN Direction Hydrogen ETF $14.01
BIB ProShares Ultra Nasdaq Biotechnology ETF $57.20
MJ ETFMG Alternative Harvest ETF $4.52
BUG Global X Cybersecurity ETF $21.37
GMET VanEck Green Metals ETF $28.60
DRIV Global X Autonomous and Electric Vehicles ETF $20.74
SMH VanEck Semiconductor ETF $208.68

Direxion Hydrogen ETF (HJEN)

An image of a hydrogen fueling station against a blue sky.
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Let’s start out with Direxion Hydrogen ETF (NYSEARCA:HJEN).

Not only does it give investors exposure to top hydrogen stocks, but it also does so at a low cost of just $14.35, making it one of the more affordable ETFs to buy.

With an expense ratio of 0.45%, this ETF holds 30 companies that are in the following sectors: Hydrogen production and generation, storage and supply, fuel cells and battery, and systems and solutions. The ETF also features companies that design and produce membranes.

Some of the ETF’s top holdings include Plug PowerBloom EnergyBallard PowerAir Products and Chemicals and Doosan Fuel Cell Co. to name a few.

 ProShares Ultra Nasdaq Biotechnology ETF (BIB)

doctor holding tablet with graphic of dna
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Another red-hot ETF to consider is the ProShares Ultra Nasdaq Biotechnology ETF (NASDAQ:BIB). At $59.32, with an expense ratio of 0.95%, this ETF offers exposure to stocks, including Clearside Biomedical, Passage BioAdverum BiotechnologiesLeap TherapeuticsSurface OncologyApplied Molecular and dozens more.

The BIB ETF didn’t have an exemplary year either. However, if it can break above triple top resistance dating back to March, it could potentially retest $85 a share.

Biotech is one of the safest, recession-proof sectors on the market. After all, we can’t stop people from aging – at least, not yet. Plus, there’s a growing demand for innovation in gene therapies, immune-oncology, precision medicine, machine-learning drug discovery, and treatments for unmet medical needs.

 ETFMG Alternative Harvest ETF (MJ)

Cannabis leaf on dollar bill
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Since peaking around $34, the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) was crushed, but don’t count it out just yet. With an expense ratio of 0.75%, the ETFMG Alternative Harvest ETF  offers investors access to the Canadian and global marijuana sector.

The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing, or distribution of cannabis products for either medical or nonmedical purposes.

Some of its top holdings include Cronos Group, Tilray, SNDL Inc., OrganiGram, Aurora Cannabis, and dozens more.

If we were to buy each of the ETFs holdings, it would cost us thousands of dollars. But for just $4.85 a share, the ETF offers exposure to all.

Helping, even more, U.S. states are likely to legalize cannabis. Perhaps we’ll see even more action from the White House following President Biden’s calls for federal reform.

Should the U.S. de-schedule or designate cannabis as a Schedule III substance, related stocks could easily see higher highs. We also have to consider that cannabis stocks are excessively low, which is great news for those with long-term vision.

Global X Cybersecurity ETF (BUG)

A digital illustration of a hacker in a blue sweatshirt.
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Or, take a look at the Global X Cybersecurity ETF (NASDAQ:BUG). Not only does BUG offer greater diversification, but it does so at far less cost.

With an expense ratio of 0.50%, the BUG ETF offers exposure to 27 holdings, which will benefit from the adoption of cybersecurity adoption.

Some of its top holdings include FortinetPalo AltoCheck Point SoftwareOkta and Rapid7 to name a few.

According to Cybersecurity Ventures, global cybercrime costs will grow about 15% a year, reaching $10.5 trillion by 2025 (up from $3 trillion in 2015). That alone is a good reason for investors to look at some of the hottest cybersecurity stocks on the market.

VanEck Green Metals ETF (GMET)

lithium (LI) on the periodic table
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Another fund for investors looking for cheap electric vehicle stocks to consider is VanEck Green Metals ETF (NYSEARCA:GMET).

Launched in November 2021, the fund tracks the Global Clean-Tech Metals Index, which is comprised of companies “involved in the production, refining, processing, and recycling of green metals,” according to VanEck.

Some of the fund’s top holdings include mining companies Anglo AmericanGlencore and Freeport-McMoRan. Geographically, the majority of the fund’s assets are concentrated in China, followed by Australia, and the U.S.

Global X Autonomous & Electric Vehicles ETF (DRIV)

Illustration of blue electric vehicle (EV) charging with dark black background
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With the electric vehicle boom only set to accelerate, look at the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV), for example.

This ETF invests in “companies involved in the development of autonomous vehicle technology, electric vehicles, and EV components and materials.

This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt,” as noted by Global X.

With this ETF, investors have exposure to EV and autonomous stocks, such as Tesla, Nio, Qualcomm and NVIDIA for example. It also does so at less cost.

VanEck Semiconductor ETF (SMH)

AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks
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With an expense ratio of 0.35%, the VanEck Semiconductor ETF (NASDAQ:SMH) tracks the performance of companies involved with semiconductor production and equipment.

It includes the who’s who in the world of semiconductor stocks, such as Taiwan Semiconductor, Nvidia, Texas Instruments, Broadcom, Applied Materials, Qualcomm Inc., Intel(NASDAQ:INTC), and dozens more.

It also tracks the MVIS U.S. Listed Semiconductor 25 Index and has about $7 billion in net assets. While the SMH ETF doesn’t appear technically attractive at the moment, give it time.

There are still plenty of trends that point to a very rewarding future for semiconductors, including gaming, electric vehicles, autonomous vehicles, 5G technology, cloud-based solutions, etc.

Plus, with the global semiconductor industry poised to become a trillion-dollar industry by 2030, investing in the latest pullback isn’t a bad move.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/7-best-etfs-to-buy-to-cover-2023s-biggest-investing-opportunities/.

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