Top ETFs To Buy As Investors Brace For Pre-Election Home Stretch
Although markets closed last week in the green for the second week in a row, there are many different forces pushing and pulling stocks right now. While September ended as the worst September for markets in nearly 18 years, October, so far, is looking a little better. Amid concerns about President Trump and First Lady Melania Trump’s health as they both tested positive for COVID-19 to close out last week, the prognosis is considerably more optimistic now. There is also mixed economic news, as there is cautious optimism about a stimulus package passing, while there are indications that the economic recovery could be slowing as the U.S. added less jobs than expected with 661,000 jobs vs. the estimated 800,000. 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 five Top Buys, three Unattractive, and two Top Shorts.
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Invesco QQQ Trust (QQQ)
The first of our five Top Buys is the Invesco QQQ Trust QQQ . This ETF is the gold standard when it comes to NASDAQ NDAQ tracking ETFs. With $134,581,230,153.30 AUM, it is by far the largest tech ETFs in terms of AUM. It has had relatively stable fund flows over the long-term and short-term. Its 90-day fund flows are $11,238,489,212, its 30-day fund flows are $8,322,178,596 , and its 1-week fund flows are $3,883,869,906. Its net expense ratio of .2% is somewhat middle of the road compared to other ETFs, however, compared to other tech focused ETFs, this is fairly cheap.
SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
The next Top Buy ETF is the SPDR Bloomberg Barclays High Yield Bond ETF JNK . While investment grade bonds have struggled to provide investors with the types of yields that they want when investing in bonds, high yield bonds have been an alternative for many. In fact, the Fed has been buying up these types of bonds in unprecedented amounts. This ETF specifically seeks investment results that correspond directly to the price and yield of the Bloomberg Barclays High Yield Very Liquid Bond Index. This ETF is relatively smaller with $12,792,267,697.31 AUM. It has seen mixed fund flows over the last few months, with a 90-day fund flow of $10,006,678,344, a 30-day fund flow of -$193,681,866.4, and a 1-week fund flow $768,960,905.6. The ETF has a net expense ratio of .4% which is relatively expensive compared to other ETFs.
SPDR Gold Shares (GLD)
After being rated Unattractive, the SPDR Gold Shares ETF GLD has now been rated Attractive by our AI systems. This ETF is a quick and easy way for investors to have exposure to and effectively invest in Gold and the gold market. Gold has had quite a run this year as a safe haven during the COVID crisis. This ETF currently has $78,020,622,965.94 AUM, and has seen consistently positive fund flows. Its 90-day fund flow is $6474857200, its 30-day fund flow is $1578277400, and its 1-week flow flow is $529376300. Its .40% net expense ratio, however, is quite expensive.
iShares JP Morgan USD Emerging Markets Bond ETF (EMB)
The next Top Buy we have for this week is the iShares JP Morgan USD Emerging Markets Bond ETF EMB . Emerging Market Bonds, while they pose unique risks that US Bonds don’t necessarily pose, offer higher returns than US bonds, with considerable upside. This ETF specifically tracks an index composed of US dollar-denominated, emerging market bonds, with top holdings consisting of bonds issued by countries such as Qatar, Saudi Arabia, Russia, The Philippines, and Turkey. The ETF currently has $16,435,571,483.50 AUM, and has seen 90-day fund flows of $1,722,804,460, 30-day fund flows of $263,583,530, and 1-week fund flows of $462,695,130. Its .40% net expense ratio is quite expensive compared to other ETFs.
iShares US Preferred Stock ETF (PFF)
The final Top Buy for this week is the iShares US Preferred Stock ETF PFF . This is a unique ETF, as it is composed of an index of preferred stock traded on both the NYSE and NASDAQ. The ETF’s holdings are selected by rules-based, proprietary methods and are weighted by market value. The ETF currently has $17,244,929,097.60 AUM. It has experienced 90-day fund flows of $1,091,246,425, 30-day fund flows of $389,328,790, and 1-week fund flows of $384,849,105. Its .47% net expense ratio is quite expensive, and is in fact the most expensive from our list of today’s ETFs.
iShares 20+ Year Treasury Bond ETF (TLT)
The first of our three Unattractive ETFs is the iShares 20+ Year Treasury Bond ETF TLT . This ETF tracks an index composed of US Treasury bonds that have remaining maturities greater than twenty years. These types of treasuries are exposed to considerable interest rate risk, and are also currently trading with unattractive yields. So as of right now, our AI systems have deemed the ETF Unattractive. The ETF currently has $19,997,564,475 AUM, and has seen decent fund flows over the last 90-days and 30-days. The iShares 20+ Year Treasury Bond ETF has seen 90-day fund flows of $1,025,487,810, 30-day fund flows of $2,075,161,080, and 1-week fund flows of $1,787,839,240. Its net expense ratio of .15% is relatively cheap as well.
Vanguard Total Stock Market ETF (VTI)
The second of our three Unattractive ETFs is the Vanguard Total Stock Market ETF VTI . This ETF tracks an index made up of a blend of growth and value stocks, from all caps, in order to follow the returns of the overall US stock market. This is a large ETF, with a considerable number of AUM at $163,401,099,737.04 AUM. The ETF has seen positive fund flows with a 90-day fund flow of $7,578,841,027, 30-day fund flow of 3,871,983,019, and a 1-week fund flow of $1,250,861,161. Its net expense ratio of .03% is very cheap and reasonable.
Financial Select Sector SPDR Fund (XLF)
Our third and final Unattractive ETF is the Financial Select Sector SPDR Fund XLF . This is a sector focused ETF, as this ETF tracks an index made up of S&P 500 financial stocks, weighted by market cap. It currently has $17,195,325,145.26 AUM which is not very large compared to other ETFs. It has seen mixed fund flows, with a 90-day fund flow of $378,600,016.8, a 30-day fund flow of -$765,178,234.7, and a 1-week fund flow of $545,563,694.5. Its .13% net expense ratio is relatively cheap as well.
iShares Core U.S. Aggregate Bond ETF (AGG)
The first Top Short we have for this week is the iShares Core U.S. Aggregate Bond ETF AGG . The ETF aims to track the investment results of an index composed of US investment-grade bonds. Although the 10-year yield has been quite low for some time now, US investment grade bonds have traditionally been the safest way to invest, and are always considered the “risk-free rate.” This ETF is a good option for investors that want stable and consistent income streams, and cheap easy exposure to fixed income and US bonds. Currently, the ETF has $80,902,645,818.20 AUM, and has seen consistently positive fund flows. The ETF has 90-day fund flows of $5,438,550,100, 30-day fund flows of $1,986,764,580, and 1-week fund flows of $436,999,050. Its .05% net expense ratio is also very cheap.
Vanguard Short-Term Corporate Bond ETF (VCSH)
The second Top Short we have for this week is the Vanguard Short-Term Corporate Bond ETF VCSH . This ETF tracks an index of investment grade corporate bonds, and maintains a dollar-weighted average maturity of 1 to 5 years. This ETF currently has $32,766,266,749.59 AUM, and has seen 90-day fund flows of $3,840,713,932, 30-day fund flows of $1,102,966,789, and 1-week fund flows of $397,033,161.2. Its net expense ratio of .07% is also very cheap.
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