What’s in store for the stock market in 2014? We asked several money managers who each have more than $1 billion in assets to share their outlook and their best ETF investing idea.

• Frank Wan, senior vice president at Burgess Chambers & Associates in Orlando, Fla. with $3 billion in assets under management: In an environment where the S&P 500 index has reached new highs and interest rates are at historical lows, investors should begin to position their portfolios more defensively by lowering portfolio volatility.

This will be of particular importance in 2014 as tapering becomes more probable, and the market re-prices investments that have been overinflated.

Money managers Frank Wan, Joseph Tatusko, David Kotok and Matt Reiner expect ETFs involving MLPs, Turkey, the Internet and dividend-paying companies. View Enlarged Image

Historically, the obvious choice was to underweight stocks and overweight bonds to preserve principal. However, when yield is scarce and interest rate risk is mounting, further diversification and unconventional assets may be necessary to offset the market risk.

Master limited partnerships, or MLPs, with significant ownership of America’s energy infrastructure and an orphaned asset class has been gaining popularity for the following reasons:

1. Strong historical performance with low correlation to stocks and bonds; 2. high yield and stable distribution growth; 3. inflation hedge; 4. U.S. energy renaissance and increasing in energy exports; and 5. growing institutional interest.

MLPs are not created equal, and risks may include leverage and commodity price sensitivity. The asset class can be divided into three categories: upstream, downstream and midstream. Midstream, also known as infrastructure assets, is the most defensive way to access MLPs. The largest ETF for this segment is Alerian Energy Infrastructure MLP (ARCA:AMLP ).

Should a correction occur in 2014, AMLP is expected to preserve capital and lower portfolio beta, or volatility, while increasing yield.

• Joseph Tatusko, CIO at Westport Resources in Westport, Conn. with $1.28 billion in assets: The weaker performers in 2013 have a reasonable chance of rebounding in 2014. It’s not uncommon to have losers in one year turn into champions the following year.

IShares MSCI Turkey (ARCA:TUR ) is down 24% year to date and has had a rough last six months. Political issues, both internal and regional, weighed on the economy, which slowed from 8% annual gross domestic product growth to 3%.

A stronger Europe, as it continues to mend itself, and a lessening of political tension could be catalysts for stronger growth.

Further, Turkey has a strong services sector, a growing industrial base and is an important energy hub bridging production from the former Soviet countries and the Middle East with the demand centers in Europe. This is indicative of a diverse and largely privatized economy.