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You wish you held these three wealth-making ETFs in 2023…
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Sebastian Bowen
Sebastian Bowen has been a Motley Fool contributor since late 2018.
Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record.
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As we welcome the new year on the ASX boards, it's a good time to look back at the shares and exchange-traded funds (ETFs) that have most delighted investors over the calendar year just gone.
We've already discussed some of the worst ASX shares to hold over the past 12 months or so last week. But today, let's try a different tack and discuss the three best-performing ETFs on the entire market over 2023. We'll only be using raw capital gains here, so the numbers analysed below don't include the value of any dividend returns.
The best ASX ETFs of 2023 revealed
Global X FANG+ ETF (ASX: FANG)
This US-focused ETF has just come off a cracking year. FANG units started 2023 at $10.70 each. But last month, those same units ended the year at $20.99. That's a capital gain worth a pleasing 96.17%.
It's not hard to see where these gains come from. The Global X FANG+ ETF holds a concentrated portfolio consisting of ten of the largest US tech shares. That includes the likes of Apple, Microsoft, Tesla, Netflix and NVIDIA – as well as Amazon, Meta Platforms, Alphabet, Broadcom and Snowflake.
Every single one of those shares has just finished an outstanding 2023. But lifts like Nvidia's 239% and Tesla's 101.7% have really helped FANG stand out.
Global X Ultra Long NASDAQ 100 Hedge Fund(ASX: LNAS)
Another fund from Global X, the Ultra Long NASDAQ 100 Hedge Fund takes out the second spot. This ETF is a slightly different kettle of fish to your average ASX exchange-traded fund. At its core, LNAS tracks the top 100 shares on the US Nasdaq stock exchange.
However, it also employs the use of derivatives in order to leverage investors' exposure to the upside. This means that if the NASDAQ-100 Index (NASDAQ: NDX) records a gain over any given period, LNAS investors can expect an amplified return.
Of course, this cuts both ways, and any NASDAQ 100 losses will also be magnified for investors of this ETF.
However, the NASDAQ 100 Index recorded an outsized gain of 53.8% in 2023. That helped push LNAS units from $4.29 at the start of last year to $9.47 by the time 2023 wrapped up. That translates to a very happy gain of 120.75%.
BetaShares Crypto Innovators ETF (ASX: CRYP)
Our final and best-performing ASX ETF of 2023 was this cryptocurrency-focused fund from provider BetaShares. CRYP aims to give investors exposure to the cryptocurrency sector.
Not by holding cryptocurrencies like Bitcoin (CRYPTO: BTC) directly, mind you, but by holding shares of companies that facilitate the mining and exchange of the digital tokens. It's your classic 'selling shovels to the gold miners' approach.
Some of the Betashares Crypto Innovators ETF's top holdings include names like Coinbase Global, Marathon Digital Holdings, and Microstrategy.
And by gosh, did it work well in 2023. CRYP units ended last year trading at $1.415 each. But those same units were worth a shocking $4.99 by the time 2023 came to a close. That means the Betashares Crypto Innovators ETF tops our list today with a stonking gain of 252.65% for 2023.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Bitcoin, Coinbase Global, Meta Platforms, Microsoft, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Betashares Crypto Innovators ETF, Bitcoin, Coinbase Global, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Bitcoin, Meta Platforms, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
