Diversify With This Week’s Trending ETFs As Bond Yields Rise

Just when we thought we could relax with easing COVID numbers and vaccines that appear to be even more effective than we thought, it looks like we have a new headwind: rising bond yields. For months in this fresh bull market, we’ve been wrestling between optimism and pessimism thanks to a pandemic and economic crisis. But now, with rising bond yields, we finally have reason to become concerned — especially with high-growth companies. Higher yields = less attractive stocks. It also means that the cost of borrowing will be higher now. Sure, it’s a blessing in disguise. It means there is pent-up consumer activity, and it also means that we could be getting back to normal sooner than we realize. But it also means that inflation could be just around the corner — especially if the Fed keeps rates this low. Time will tell what happens in the short-term, but we’ve put together a list of trending ETFs this week that can help you diversify your portfolio and potentially mitigate these risks. Q.ai’s deep learning algorithms have identified several ETFs to look out for this week based on their fund flows over the last 90-days, 30-days, and 7-days. We have identified four Top Buys, one Attractive, one Neutral, one Unattractive, and one Top Short for this week.  

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Top Buy

ARK Innovation ETF (ARKK)

Our first Top Buy ETF for the third week in a row is the ARK Innovation ETF ARKK . This ETF focuses on holding companies that are defined by ‘‘disruptive innovation’’ or the companies that provide a product or service that could potentially change the way the world works. With top holdings consisting of companies such as Tesla TSLA , Roku, Crispr Therapeutics, Square, and Invitae, Ark Invest seemingly has that covered. With $27,902,320,730.97 AUM, the ETF is small to medium sized. Its fund flows have been consistently positive, with a 90-day fund flow of $9,620,747,800.00, 30-day fund flow of $3,640,388,800.00, and 1-week fund flow of $704,792,600.00. With a net expense ratio of 0.75%, it is very expensive- but that is what you get with an ETF as actively managed as an ARK ETF from a stock guru like Cathie Wood.

ARK Fintech Innovation ETF (ARKF)

The ARK Fintech Innovation ETF  ARKF is our next Top Buy this week and our second ARK ETF of the day. Cathie Wood and her company’s ETFs have continuously outperformed as of late. This ARK ETF aims to provide investors exposure to fintech innovations such as mobile payments, digital wallets, peer-to-peer lending, blockchain technology, and risk transformation. The ETF is on the smaller side with $4,277,767,649.83 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $3,052,961,200.00, 30-day fund flow of $1,966,183,150.00, and 1-week fund flow of $835,298,550.00. As expected with an ARK ETF, this ETF has a very pricey net expense ratio of 0.75%.

MORE FOR YOU

ARK Next Generation Internet ETF (ARKW)

The ARK Next Generation Internet ETF ARKW  is our next Top Buy this week and our third and final ARK ETF of the day. This ARK ETF aims to provide investors exposure to the “Next Generation Internet.” What this refers to are sectors such as artificial intelligence, big data, cloud computing, cybersecurity, and blockchain technology. The ETF is on the smaller side with $9,097,767,315.56 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $3,863,171,350.00, 30-day fund flow of $2,137,718,400.00, and 1-week fund flow of $641,138,900.00. Like the other ARK ETFs, this ETF has a very pricey net expense ratio of 0.75%.

Invesco S&P 500 Low Volatility ETF (SPLV)

The Invesco S&P 500 Low Volatility ETF SPLV  is our final Top Buy this week. This ETF aims to provide investors with an index of low volatility S&P 500 stocks. Invesco chooses 100 securities from the S&P 500 that have experienced the lowest volatility over the past 12 months. The ETF is on the smaller side with $8,068,546,394.29 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $212,232,386.50, 30-day fund flow of $464,474,171.10, and 1-week fund flow of $591,638,095.70. The ETF also has a decent net expense ratio of 0.25%.

Attractive

Vanguard S&P 500 ETF (VOO)

The lone Attractive ETF for this week is the Vanguard S&P 500 ETF VOO . This ETF aims to mirror the performance of the S&P 500 as closely as possible. With $198,021,270,205.46 AUM, it is one of the largest ETFs on this week’s list. Its fund flows have been consistently positive with a 90-day fund flow of $8,638,588,719.12, 30-day fund flow of $11,908,641,603.37, and 1-week fund flow of $1,551,580,081.39. With a net expense ratio of 0.03%, it is also very cheap.

Neutral

iShares S&P 500 ETF (IVV)

The lone Neutral ETF IVV  is another ETF that seeks to track the S&P 500-the iShares S&P 500 ETF. With $254,778,120,214.00 AUM, it is by far the largest ETF on this week’s list based on AUM. Its fund flows have also been consistently positive with a 90-day fund flow of $3,560,966,240.00, 30-day fund flow of $9,166,138,170.00, and 1-week fund flow of $2,481,361,080.00. With a net expense ratio of .03, it is also very cheap to own.

Unattractive

Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF VTI  is our sole Unattractive ETF, and is Unattractive for the second week in a row. This ETF aims to track the broader stock market, across all indices. The ETF also includes stocks of all cap sizes, and both growth stocks and value stocks. The ETF is on the larger side with $219,080,681,441.28 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $12,850,872,500.70, 30-day fund flow of $2,831,321,052.64, and 1-week fund flow of $863,311,303.07. Its net expense ratio of 0.03% is also very cheap and reasonable.

Top Short

iShares 7-10 Year Treasury Bond ETF (IEF)

With rising bond yields becoming the talk of the market, our Top Short this week certainly has relevance- the iShares 7-10 Year Treasury Bond ETF IEF . The goal of this ETF is fairly straightforward- to track the investment results of an index composed of U.S. Treasuries with 7-10 years of remaining maturities. The ETF is small to medium sized with $14,025,785,655.30 AUM. It has seen mixed fund flows, with a 90-day fund flow of -$3,706,911,250.00, 30-day fund flow of $130,799,830.00, and 1-week fund flow of $649,971,360.00. Its net expense ratio of 0.15% is also fairly reasonable.

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