Top ETFs This Week As Dow Kicks Off Month With Gains

Markets closed October by ending the week lower for the second consecutive week. In fact, the indices had their worst week since global markets crashed in March. Last week also marked the 11th time this year that the S&P 500 ended the week over 2% lower than the start of the week, compared with a yearly average of around six times since 2010. Although October started off strongly, the markets also closed down for the second consecutive month. While strong earnings continued to pour in, and more data indicated good recovery news regarding jobless claims, GDP growth, and consumer spending, markets are certainly reflecting the unease permeating the US and the world. COVID numbers are reaching record levels, and countries are reimposing lockdown restrictions. Additionally, investors do not realistically expect a stimulus until 2021, which will surely weigh on stocks until that finally happens. Additionally, while the election is finally here, investors believe that this process will be contested and drag-on for an unprecedented amount of time. History shows that markets do not like contested elections. As the VIX reached its highest levels since June, people are truly uncertain and anxious, and do not know what to expect in the coming months. Amidst the uncertainty, Q.ai’s deep learning algorithms have identified several interesting ETFs based on their fund flows over the last 90-days, 30-days, and 7-days. This includes two Top Buys, one Attractive, one Unattractive, and three Top Shorts. We also have two other interesting unrated ETFs for this week as well.

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Top Buys

Our AI systems have identified two ETFs rated as Top Buys this week.

Vanguard S&P 500 ETF (VOO)

Our first Top Buy of the week is the Vanguard S&P 500 ETF  VOO . The goal of this ETF is fairly straight forward- to track as closely as possible the return of the S&P 500 index. The stock has seen consistently positive fund flows with a 90-day fund flow of $2,921,528,635.59, 30-day fund flow of $404,621,152.78, and 1-week fund flow of $888,417,790.49. With a net expense ratio of .03%, this ETF is also extremely cheap.

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Technology Select Sector SPDR Fund (XLK)         

Our second Top Buy of the week is the Technology Select Sector SPDR Fund XLK . The goal of this ETF is to track an index made up exclusively of S&P 500 tech stocks. The ETF’s fund flows have been mixed, with a 90-day fund flow of -$1,023,411,678.75, 30-day fund flow of $346,339,476.70, and 1-week fund flow of $408,870,448.70. While the net expense ratio of .13% isn’t as cheap as the Vanguard S&P 500 ETF, the Technology Select Sector SPDR Fund ETF is still quite reasonable.

Attractive

Our AI systems have identified one ETF rated as Attractive this week.

iShares Russell 2000 ETF (IWM)

Our lone Attractive rated ETFs is the iShares Russell 2000 ETF IWM . This ETF tracks an index made up of small-cap US stocks that trade on the Russell 2000 index. The ETF has seen consistently positive fund flows, with a fund flow of $407,412,980.00 over the last 90-days, a fund flow of $1,414,308,565.00 over the last 30-days, and a 1-week fund flow of $526,094,140.00. Its net expense ratio of .2% is pricier compared to other similar ETFs.

Unattractive

Our AI systems have identified one Unattractive rated ETF this week.

Vanguard Total Stock Market ETF (VTI)

The lone Unattractive rated ETF for this week is the Vanguard Total Stock Market ETF VTI . This ETF aims to track the broader stock market, across all indices. The ETF includes stocks of all cap sizes, and both growth stocks and value stocks. It has seen consistently positive fund flows, with a 90-day fund flow of $9,611,289,112.57, 30-day fund flow of $3,851,258,626.91, and 1-week fund flow of $357,069,588.54. Its net expense ratio of .03% is also very cheap and reasonable.

Top Shorts

Our AI systems identified three ETFs rated as Top Shorts this week.

Vanguard Total Bond Market ETF (BND)

The first Top Short ETF is the Vanguard Total Bond Market ETF BND . This ETF seeks to give investors exposure to a broad index of taxable US dollar denominated bonds. The ETF has seen consistent fund flows, with a 90-day fund flow of $6,265,361,000.00, 30-day fund flow of $2,057,369,000.00, and 1-week fund flow of $412,724,000.00. With a net expense ratio of .05%, this ETF is also extremely cheap.

iShares Core U.S. Aggregate Bond ETF (AGG)

Our next Top Short is the iShares Core U.S. Aggregate Bond ETF AGG . This ETF aims to track an index composed of the total U.S. investment-grade bond market. The ETF has witnessed consistent fund flows with a 90-day fund flow of $3,082,763,680.00, 30-day fund flow of $1,083,122,480.00, and 1-week fund flow of $447,317,600.00. Its net expense ratio of .05% is also reasonable.

Vanguard Short-Term Corporate Bond ETF (VCSH)

The Vanguard Short-Term Corporate Bond ETF is our final Top Short ETF VCSH . This ETF consists of holdings that are made up of high-quality, investment-grade, corporate bonds. The ETF has seen consistently positive fund flows, with a 90-day fund flow of $4,363,373,020.52, 30-day fund flow of $1,425,214,177.34, and 1-week fund flow of $323,244,393.94. Its net expense ratio of 0.07 is also quite cheap.

Unrated

iShares Core MSCI EAFE ETF (IEFA)

The iShares Core MSCI EAFE ETF is our first unrated ETF IEFA . This ETF is composed of large-, mid- and small-cap companies from exclusively foreign markets, while also excluding Canada. This ETF gives investors significant exposure to a broad range of companies in Europe, Australia, Asia, and the Far East. The ETFs fund flows have been consistent, with a 90-day fund flow of $3,567,810,620.00, 30-day fund flow of $441,955,200.00, and 1-week fund flow of $441,955,200.00. The net expense ratio of 0.08 is also very good.

Vanguard Total International Stock ETF (VXUS)

Our other unrated ETF is the Vanguard Total International Stock ETF VXUS . This ETF aims to give investors exposure to companies located outside of the US, and has broad exposure across both developed and emerging non-US equity markets. The Vanguard Total International Stock ETF has seen a 90-day fund flow of $6,064,504,029.21, 30-day fund flow of $2,670,657,617.85, and 1-week fund flow of $364,423,919.17. Its net expense ratio of .09% is also decent.

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