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Top ETF Picks For 2020

Cinthia Murphy | | Dec 16th, 2019

As the year comes to a close and we prepare to embark on the roaring 2020s, it’s a good time to evaluate your asset allocation.

This time of year, advisors everywhere are busy looking closely at what’s worked, what needs to go, and where opportunity lies ahead when it comes to portfolios.

We asked some ETF strategists and advisors to offer one ETF they like for the new year, and why that particular strategy is top of mind when it comes to investing in 2020. Here’s the list:

Sam Huszczo, founder and head of Investment and Research of SGH Wealth Management; Southfield, Michigan:

ETF Pick For 2020: Invesco BulletShares 2021 High Yield Corporate Bond ETF (BSJL)

“Target-maturity bond ETFs are one of the best-kept secrets in the ETF-verse, and by giving the investor control over when the diversified basket of bonds mature, it creates fixed income strategies that many did not have access to in the past with mutual funds.

“Due to the high correlations between high-yield bonds and the stock market, it may be prudent to have one’s riskier bonds mature near a time frame where there could be market volatility. If emotions take the better of investors in 2020, we would anticipate less of a downside run on these shorter-term issues, and potentially create a trading opportunity to extend duration at that time.

“Target-maturity bond ETFs give that level of control in a diversified package, and in the meantime, you are clipping a pretty nice coupon.”

BSJL invests in high-yield corporate bonds with effective maturities in 2021. The fund has nearly $1 billion in total assets under management, and costs 0.42% in expense ratio, or $42 per $10,000 invested.