by Ian Cooper

One of the best ways to trade any hot sector is with an exchange traded fund (ETF).

Not only does an ETF allow you to diversify among dozens of industry names, it also allows you to do so at far less cost. With it, I can gain exposure to stocks, such as Apple, Microsoft, Nvidia, Visa, Mastercard, Broadcom, Cisco, Accenture, and another 68 tech holdings.

Here are three of the top ETFs to consider as we get deeper into 2023.

Schwab U.S. Large Cap Value ETF (SCHV)

One of the best ways to diversify is with an ETF, such as the Schwab U.S. Large Cap Value ETF (SCHV), which carries a balanced portfolio of large cap value stocks. With an expense ratio of 0.04%, the ETF offers exposure to companies such as Berkshire Hathaway, Johnson & Johnson, Exxon Mobil, JP Morgan Chase, Home Depot, AbbVie, Pfizer, and Merck. Even better, the SCHV ETF has a dividend yield of 2.45% and has a quarterly payout.

KraneShares Electric Vehicles and Future Mobility ETF (KARS)

The Krane Shares Electric Vehicles and Future Mobility ETF (KARS) could accelerate.

After all, the electric vehicle boom is accelerating – and fast. Governments all over the world are pushing for a greener future. The U.S. just promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China will stop releasing CO2 in the next 40 years.

In doing so, they all want millions of electric vehicles on the roads. Fueling even more potential upside, states, like California are banning gas-powered cars by 2035. More are likely to follow. Even the European Union just approved a law that will ban the sale of new petrol and diesel cars starting in 2035. 

That being said, the KARS ETF could be a top beneficiary. With an expense ratio of 0.70%, this ETF provides exposure to companies involved in the production of EVs and their components.

Global X Lithium ETF (LIT)

One of my favorite ways to trade any hot sector is with an ETF, such as the Global X Lithium ETF. Not only does this ETF offer great diversification, it does so at less cost.  At $60 a share, with an expense ratio of 0.75%, the LIT ETF offers exposure to stocks, such as Albemarle, BYD Co., LG Chem, Tesla, Livent Corp., Lithium Americas, and Quantumscape Corp.

Even better, major automakers are securing lithium deals as the battle for supply heats up.

General Motors, for example, said it would invest $650 million in Lithium America (LAC) to help develop a lithium deposit in Nevada. According to Barron’s, “The mine, referred to as Thacker Pass, is projected to begin lithium production in the second half of 2026. The Thacker Pass investment should amount to all the lithium GM needs to meet its goal of selling 1 million EVs in North America by mid-decade.”