Morningstar’s ETF Playbook for 2023

After a volatile 2022 in the markets, investors aren’t getting much relief in 2023. Inflation still runs well above the Federal Reserve’s target. Questions exist about the health of the banking sector. And while most market watchers agree that the Federal Reserve’s May interest-rate increase was likely its last, the jury is out about whether the Fed will consider lowering rates anytime soon.

The takeaway for investors? Expect more volatility ahead.

To cope with market volatility, Morningstar suggests maintaining a diversified portfolio that aligns with your goals. And ETFs are low-cost building blocks that investors can use to do just that.

We’ve assembled this ETF playbook that investors can use to ensure that their portfolios are goals-focused and diverse in 2023. From nuts and bolts research to sample portfolios to some of Morningstar’s favorite ETFs across investment categories, we hope this guide helps investors become more confident in their investments in the face of market volatility.

ETF Nuts and Bolts

Morningstar’s Guide to ETF Investing

Learn about the types of exchange-traded funds, their costs, and how to invest in them.

Why Index Funds and ETFs Are Good for Retirees

Low costs and tax efficiency are obvious pluses, but so are ease of oversight and cash flow extraction.

5 Tips for Trading ETFs

Best practices for avoiding unnecessary trading costs.

The New Frontier of Active Investing

Active managers’ adoption of the ETF structure has changed the game for investors.

Despite Recent Struggles, Thematic Funds Are Here to Stay

How to use our framework to assess the potential merits of a thematic investment.

How to Cut Your Losses With Defined-Outcome ETFs

Investing in buffer funds comes with trade-offs and higher fees.

Christine Benz’s ETF Portfolio Examples for Savers and Retirees

Tax-Deferred Retirement-Bucket Portfolios for ETF Investors

These portfolio mixes are geared toward retirees with different time horizons and risk tolerances/capacities.

Tax-Deferred ESG Retirement-Bucket Portfolios for ETF Investors

These in-retirement portfolios invest in ESG-friendly ETFs that should provide marketlike exposures.

Tax-Efficient Retirement-Bucket Portfolios for ETF Investors

These tax-efficient portfolios are geared toward retirees who are seeking simplicity and balance.

Tax-Deferred Retirement-Saver Portfolios for ETF Investors

These three portfolios are geared toward the tax-deferred accounts of people who are still working and saving for retirement.

ESG Tax-Deferred Retirement-Saver Portfolios for ETF Investors

These low-cost ETF portfolios are designed to deliver potent asset-class exposures to ESG-conscious investors saving for retirement.

Tax-Efficient Retirement-Saver Portfolios for ETF Investors

Composed of broad-market equity ETFs and smaller allocations to municipal bonds, these portfolios are designed for retirement savers’ taxable accounts.

Top ETF Picks

3 Great ETFs for 2023 and Beyond

Investors don’t have to give up long-term performance to manage current risks.

3 Great Core Bond ETFs

These low-cost ETFs provide investors with broad exposure to the fixed-income market.

3 Great Growth ETFs for 2023

An ETF for all types of growth investors.

3 Great International-Stock ETFs

From narrowly focused to broad-based, here are three options that should do well.

3 Great Specialized ETFs

Here’s some top stock and bond ETF picks for particular investment tastes.

3 Great Emerging-Markets ETFs

These are solid options in an otherwise tough category.

3 Unrated ETFs We’ve Got Our Eye On

These new ETFs have a lot to like.

3 Recent Standout ETFs to Avoid

These enticing ETFs are primed to disappoint.