The Best ETFs to Buy Now

Finding the best ETFs to buy in a high-inflation environment can seem like a tall task, but these five picks are a good place to start.

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Exchange-traded funds (ETFs) offer investors a variety of different strategies to prepare for whatever the market throws at them – rising interest rates, geopolitical uncertainty, economic instability. And we kept all of these in mind as we built this list of the best ETFs to buy now. 

As we round out the first quarter of 2023, we've enjoyed at least a modest respite from the turmoil and volatility of last year. Stocks are higher on the year so far, and investor confidence is returning. But that doesn't necessarily mean it's back to business as usual. Many of the factors that drove the bear market in 2022 are still very much alive and well today.

And at the top of the list is inflation.

"The Fed is in a tough spot," explains Doug Robinson, president of RCM Robinson Capital Management LLC (opens in new tab), a registered investment advisor based in San Francisco with $102 million in assets under management. "Inflation continues to come in hot, which forces them to keep tightening by raising rates. But the more they raise rates, the bigger the possibility that they push us into a recession."

There are few immediate signs of recession. The labor market remains tight, with unemployment close to its lowest levels in recorded history, and the latest forecast for GDP growth coming from the Atlanta Fed shows GDP growth this quarter coming it at close to 3%.

Yet the yield curve remains deeply inverted, with short-term interest rates significantly higher than long-term interest rates. This has traditionally been a warning sign of a coming recession. And in its latest earnings release, Walmart (WMT (opens in new tab)) noted that it saw a larger percentage of high-income Americans frequenting its stores of late … which is a major sign that folks across the income spectrum are feeling the pinch of inflation.

So, how do you invest in an environment like this?

Let's take a look at the five best ETFs to buy now.

Data is as of Feb. 27. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds.  

Charles Lewis Sizemore, CFA
Contributing Writer,

Charles Lewis Sizemore, CFA is the Chief Investment Officer of Sizemore Capital Management LLC, a registered investment advisor based in Dallas, Texas, where he specializes in dividend-focused portfolios and in building alternative allocations with minimal correlation to the stock market.