5 Big Investment Trends in 2023

3. ETFs

Persistent rate hikes, inflation, uncertainty in the stock market and an overall propensity of investors to hedge against risks gave a huge boost to ETFs in 2023. According to data from Morningstar, new exchange-traded funds (ETFs) in the U.S. marketplace are on track to hit record highs this year.

A whopping 391 new ETFs started trading in 2023 through October 27, a massive jump from 311 new ETFs in the same period in 2021.

A Reuters report quoted John Hooson, managing director for ETF Product at BBH, who said that ETFs are rising in popularity as investors tend to tackle volatility and effects of rising rates. Money managers are creating new, innovative ETFs to attractive investors. For example, amid the AI wave, 2023 saw a flurry of AI-focused ETFs.