Top ETFs This Week As Markets Cool Off To End November

After a November to remember, markets cooled off in the final trading day of the month. After starting the month with the best election week performance since 1932, positive vaccine data from Pfizer PFE and BioNTech, Moderna, and Astrazeneca and Oxford University, caused markets to soar. The Dow has risen over 11% this month, on pace for its best monthly performance since January 1987, while the S&P 500 and the Nasdaq NDAQ both climbed over 10%. However, small-caps led the way, with the Russell 2000 index on pace for its best monthly performance in history and gaining 20+%. Energy, 2020′s worst performing sector, also jumped 29% this month, while financials, industrials and materials have all gained at least 11%. For the foreseeable future, however, investors will have to consistently weigh the realities of the 2nd wave of COVID. Although it appears that the end is finally in sight, short-term pain amid more shutdowns are surely on the horizon. A good way to manage this unpredictability, and add diversity to your portfolio, is through investing in ETFs. 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 two Top Buys, one Attractive, three Neutral, two Unattractive, and one Top Short for this week. 

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Top Buy

iShares MSCI Japan ETF (EWJ)

After being rated as a Top Short last week, the iShares MSCI Japan ETF EWJ is our first Top Buy for the week. The ETF gives investors easy exposure to the Japanese equity market through a comprehensive index composed of large and mid-sized Japanese companies. With the decline of the dollar, there may be some opportunities with exposure to markets such as Japan. The ETF is smaller-sized with $12,890,174,123.20 AUM. The ETF has also seen consistent fund flows with a 90-day fund flow of $1,524,164,550.00, 30-day fund flow of $1,116,338,400.00, and 1-week fund flow of $660,148,455.00. The ETF’s net expense ratio of 0.49% is very expensive and the priciest on this list.

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

The iShares Core U.S. Aggregate Bond ETF AGG   is our other Top Buy this week, and is a Top Buy for the second week in a row. This ETF aims to track an index composed of the total U.S. investment-grade bond market. This ETF is also midsized in terms of AUM with $83,365,909,204.60 AUM. The ETF has also witnessed consistent fund flows with a 90-day fund flow of $4,521,770,410.00, 30-day fund flow of $1,497,859,120.00, and 1-week fund flow of $1,027,766,480.00. Its net expense ratio of .05% is also reasonable.

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Attractive

Financial Select Sector SPDR Fund (XLF)

The Financial Select Sector SPDR Fund XLF is our lone Attractive ETF for the week. This ETF is considered a benchmark ETF for exposure to banks and other financials, and seeks to effectively represent the S&P 500’s financial sector. The ETF has $22,782,218,170.06 AUM and has seen positive fund flows coinciding with the rotation into cyclical stocks. The ETF has a 90-day fund flow of $2,525,121,390.45, 30-day fund flow of $1,895,617,350.10, and 1-week fund flow of $825,996,558.00. Its net expense ratio of .13% is also fairly attractive.

Neutral

Invesco QQQ Trust (QQQ)

The Invesco QQQ Trust QQQ is our first Neutral ETF for the week. This ETF is considered to be the staple ETF for tracking the Nasdaq as closely as possible, with holdings weighted by market cap. The ETF is also rebalanced quarterly. It is a very large ETF with $144,525,697,853.47 AUM. It has seen mixed fund flows, largely due to the rotation out of tech in the initial vaccine rally. The ETF has a 90-day fund flow of $10,712,942,920.50, 30-day fund flow of -$753,341,466.00, and 1-week fund flow of $1,315,859,374.00. Its net expense ratio of 0.2% is also very cheap and attractive.

SPDR S&P 500 ETF Trust (SPY)

Our next Neutral ETF for the week is the SPDR S&P 500 ETF Trust SPY . This is a benchmark ETF that tracks the return of the S&P 500 index as closely as possible. The ETF is the largest ETF on the market in terms of AUM with $323,922,314,660.81 AUM. The ETF has seen consistently positive fund flows with a 90-day fund flow of$3,650,511,922.70, 30-day fund flow of $7,364,573,004.10, and 1-week fund flow of $1,186,661,487.80. With a net expense ratio of .094%, this ETF is also extremely cheap.

Vanguard Total Stock Market ETF (VTI)

After being rated as Unattractive the last two weeks, the Vanguard Total Stock Market ETF VTI  comes in as our final Neutral ETF for this week. 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. The ETF is on the larger side with $189,777,622,013.68 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $13,277,447,886.74, 30-day fund flow of $5,556,672,681.85, and 1-week fund flow of $847,774,841.98. Its net expense ratio of .03% is also very cheap and reasonable. 

Unattractive

Vanguard S&P 500 ETF (VOO)              

Our first Unattractive ETF this week is the Vanguard S&P 500 ETF VOO . The goal of this ETF is fairly straightforward and similar to the SPDR S&P 500 ETF’s- to track as closely as possible the return of the S&P 500 index. While not as large as the SPDR S&P 500 ETF, it is still a large ETF in terms of AUM, with $178,079,945,541.30 AUM. The stock has seen consistently positive fund flows with a 90-day fund flow of $6,097,803,988.90, 30-day fund flow of $3,386,064,329.75, and 1-week fund flow of $856,269,386.30. With a net expense ratio of .03%, this ETF is also extremely cheap.

iShares Russell 2000 ETF (IWM)

Our final Unattractive 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. Although the Russell has outperformed all the other indices, and has benefitted the most from positive vaccine news, it is also ultra-sensitive to bad news as well. As COVID surges largely unchecked and out of control, there are questions on whether or not The Russell’s rally can be sustained. The ETF is mid-sized with $52,012,534,294.10 AUM, and has seen consistently positive fund flows. The ETF has a fund flow of $3,214,771,435.00 over the last 90-days, a fund flow of $2,957,832,925.00 over the last 30-days, and a 1-week fund flow of $1,200,369,540.00. Its net expense ratio of .2% is not terrible, but pricier compared to other similar ETFs.

Top Short

iShares Edge MSCI USA Quality Factor ETF (QUAL)

Our only Top Short this week is the iShares Edge MSCI USA Quality Factor ETF QUAL . This ETF is built in a unique way, and aims to hold U.S. large- and mid-cap stocks that pose three strong fundamental metrics: return on equity, earnings variability, and debt-to-equity. The ETF has $24,473,472,277.50 AUM, and has seen consistent fund flows. It has a 90-day fund flow of $3,626,358,960.00, 30-day fund flow of $3,274,711,770.00, and 1-week fund flow of $2,808,739,470.00. The ETF also has a net expense ratio of .15% which is decent.

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