Here Are 7 Advisors' Top ETF Picks: Advisors' Advice

High stock valuations, uncertain timing on interest rate cuts and other market dynamics can add up to confusion for investors.

Clients face an array of choices when it comes to addressing near-term market dynamics while seeking to maintain their long-term financial goals.

We asked advisors whether they’re recommending specific ETFs to clients to address the current environment and if so, why. Several cited individual exchange-traded funds while others offered more general thoughts.

Tamara Witham, owner and financial planner at GreenLife Advisors LLC, noted that bonds attract investors seeking a steady income stream compared to low-yielding savings accounts and money market funds.

While investors can build a bond ladder by purchasing bonds with different maturity dates to lock in today’s relatively high interest rates without worrying about future rate changes, Witham recommends target maturity ETFs over individual bonds for clients.

“A ladder of target maturity bond funds can achieve the same objectives as a ladder of individual bonds while providing diversification across many underlying bond holdings with lower fees than those incurred in buying individual bonds,” she said.

Jeremy Bohne, financial advisor and founder, Paceline Wealth Management, cautioned against winding up with a concentration in pricey tech stocks.

“One of the unexpected outcomes of investing in certain ESG funds is that they tend to be overly weighted towards expensively priced technology stocks,” Bohne said, referencing environmental, social and governance-oriented funds.

“Often, natural resources firms — like energy, mining and utilities — which do well during an inflationary period are excluded from holdings, leaving outsized positions in tech stocks.

This isn’t always a bad thing, but if your concern is being overly concentrated in a handful of highly priced tech stocks, this can exacerbate the issue in an unexpected way for most investors.”

Check the gallery for specific recommendations from 6 other advisors. Some items were edited for clarity or length.