Technology was the standout sector. Funds focusing on cloud computing and software-as-a-service (SaaS) led the pack. First Trust Cloud Computing ETF (SKYY)
As rates rose, "cash-like" ETFs finally started providing a modest yield without the drama of the stock market. Review Summary: Was 2018 a good year to buy? 2018 Context Long-term Verdict Broad Market (VOO/VTI) Rough end to the year (-4% approx).
Because 2018 saw the S&P 500 end the year with a slight loss, some of the "best" ETFs were actually those that preserved capital. iShares Short Treasury Bond ETF (SHV) best etf to buy 2018
Strong M&A (mergers and acquisitions) activity kept this fund in the green while other sectors slumped.
This remains a foundational tech ETF, though it now faces stiff competition from more specialized AI-focused funds. 2. Healthcare & Biotech (The Defensive Play) Technology was the standout sector
Healthcare often acts as a "defensive" sector during volatility. In 2018, breakthroughs in gene therapy boosted specific biotech ETFs. iShares Nasdaq Biotechnology ETF (IBB)
Buying the 2018 dip led to massive gains in 2019-2021. Tech (QQQ) Volatile, but stayed flat/positive. Winner. The dominant theme of the last decade. Dividends (VYM) Struggled due to rising rates. Moderate. Better for income than raw growth. The "Best" Pick in Hindsight Review Summary: Was 2018 a good year to buy
While still a giant, many investors now prefer the XBI (SPDR S&P Biotech) for its equal-weight approach to smaller, high-growth companies. 3. Short-Term Treasury & Cash (The Safety Net)