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SPDR S&P Retail, ARK Fintech Innovation And More Top ETFs To Diversify Your Portfolio This Week

April proved that history usually repeats itself and was overall a solid month for stocks. However, May comes in with more questions than answers. The month kicked off with substantial gains. But then we saw the worst tech sell-off since March. Now, on the 3rd trading day of the month, we have tech stocks sharply recovering and leading the way. If you thought the tug of war between optimism and pessimism would end in 2021, unfortunately, you were sorely mistaken. There is a genuine possibility that we could be at a market top. Couple that with inflation fears and the potential for more tax hikes, and there are many macro-level things to be concerned about. It’s easy to be excited about the economy reopening this summer, but it’s important to hedge your bets. A great way to do that is through ETFs. We’ve built a list of ETFs rated as Top Buys for this week. Hopefully, some of these picks can help you diversify your portfolio and potentially mitigate 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.  

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ARK Fintech Innovation ETF (ARKF)

The ARK Fintech Innovation ETF 
ARKF
is our first Top Buy this week. Although Cathie Wood and her company’s ETFs were top performers in 2020, 2021 has not been smooth sailing to put it lightly. This ARK ETF specifically focuses on providing investors with 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 $593,695,590.67 AUM. It has seen mixed fund flows, with a 90-day fund flow of $1,750,365,200.00, 30-day fund flow of $63,144,150.00, and 1-week fund flow of -$16,009,200.00. As expected with an ARK ETF, this ETF has a very pricey net expense ratio of 0.75%.

SPDR S&P Retail ETF (XRT)

The SPDR S&P Retail ETF
XRT
is our next Top Buy. This ETF aims to give investors exposure to the retail segment of the S&P 500, with stocks such as GameStop
GME
, Magnite Inc., Signet Jewelers Limited
SIG
, Groupon Inc., and Designer Brands Inc
DBI
. The ETF is small-sized with only $412,771,962.78 AUM. It has seen positive fund flows with investors rushing into reopening plays, with a 90-day fund flow of $597,713,951.40, 30-day fund flows of $281,954,536.15, and 1-week fund flow of $116,432,233.75. The ETF has a relatively pricey net expense ratio of 0.35%.

iShares Russell 2000 ETF (IWM)

The iShares Russell 2000 ETF
IWM
is our next Top Buy. The ETF aims to track the small-cap Russell 2000 index. With optimism of a reopening economy, more government spending, and a monetary policy that remains dovish, the Russell 2000 and small-cap stocks continue to be a strong place for exposure. The ETF is mid-sized with $40,205,986,631.80. It has seen mixed but primarily negative fund flows, with a 90-day fund flow of $511,010,050.00, 30-day fund flow of -$2,563,011,540.00, and 1-week fund flow of -$264,786,515.00. Its net expense ratio of 0.2% is decent.

iShares US Real Estate ETF (IYR)

The iShares US Real Estate ETF is our next Top Buy ETF this week. This ETF aims to give investors exposure to U.S. real estate companies and REITs, and is a very good option to diversify portfolios and gain direct access to the real estate sector- especially with inflation on the horizon. The ETF is smaller-sized with $3,519,650,193.50 AUM, and has seen primarily positive yet mixed fund flows. The ETF has a 90-day fund flow of $1,792,757,590.00, a 30-day fund flow of $1,221,881,240.00, and a 1-week fund flow of -$193,038,260.00. Its net expense ratio of 0.44%, however, is quite expensive.

Vanguard Small-Cap ETF (VB)

The next Top Buy ETF is another ETF with strong exposure to small-cap stocks: the Vanguard Small-Cap ETF
VB
. This ETF aims to track an index of high-quality and diversified small-cap stocks, and has performed very strongly over the last 12+ months with holdings such as Zebra Technologies Corp
ZBRA
, Etsy Inc., Teradyne Inc
TER
, and HubSpot Inc
HUBS
. The ETF is medium sized in terms of AUM with $28,513,137,911.28 AUM. The ETF has also seen positive fund flows with a 90-day fund flow of $1,677,319,516.11, 30-day fund flow of $666,204,743.98, and 1-week fund flow of $155,023,481.17. The ETF also has a very attractive 0.05% net expense ratio.

iShares PHLX Semiconductor ETF (SOXX)

The next Top Buy ETF for this week is the iShares PHLX Semiconductor ETF
SOXX
 
. This ETF aims to follow and track the overall performance of US based companies involved in semiconductor production and equipment. With a worldwide semiconductor shortage, this is definitely the type of ETF you want to keep your eyes on. The ETF is also on the smaller side with $3,658,452,370.65 AUM. The ETF has also seen mixed fund flows, with a 90-day fund flow of $979,533,715.00, 30-day fund flow of $276,599,140.00, and 1-week fund flow of -$150,664,075.00. The iShares PHLX Semiconductor ETF also has a net expense ratio of .48% which is certainly on the pricier side.

iShares Silver Trust (SLV)

The iShares Silver Trust
SLV
 
is our next Top Buy ETF. This is a good ETF to hold onto right now due to what looks like imminent inflation and a weakening dollar. Because the iShares Silver Trust aims to reflect the performance of the price of silver while providing a convenient and cost-effective way to invest in physical silver, it’s a very good hedge for this type of environment. Commodities are always a good way to go when the dollar weakens. With $15,144,239,709.51, the ETF is on the smaller side. Its fund flows have been mixed and primarily negative, with a 90-day fund flow of $58,322,845.00, 30-day fund flow of -$191,158,535.00, and 1-week fund flow of -$31,707,130.00. With a net expense ratio of 0.5%, it is also certainly not cheap to own.  

iShares Russell 2000 Value ETF (IWN)

The next Top Buy ETF is the iShares Russell 2000 Value ETF
IWN
 
. Value stocks have been the way to go in 2021, and this ETF is no exception. This ETF tracks a basket of undervalued small-cap stocks that trade on the Russell 2000 and could especially benefit from the current climate. In terms of AUM, the ETF is on the smaller side with $8,208,167,389.40 AUM. The ETF has also surprisingly seen mixed fund flows, with a fund flow of $1,380,682,780.00 over the last 90-days, a fund flow of -$63,752,930.00 over the last 30-days, and a 1-week fund flow of $39,963,175.00. Its net expense ratio of 0.24% is decent but pricier than comparable ETFs.

ARK Next Generation Internet ETF (ARKW)

The ARK Next Generation Internet ETF
ARKW
is our next Top Buy this week and our second ARK ETF on the list. 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 $2,378,423,582.85 AUM. It has seen mixed but primarily negative fund flows, as high-growth sectors have been rocked. It’s seen a 90-day fund flow of $819,573,500.00, 30-day fund flow of -$317,633,350.00, and 1-week fund flow of -$23,063,600.00. This ETF also has a very pricey net expense ratio of 0.75%.

Energy Select Sector SPDR Fund (XLE)

The Energy Select Sector SPDR Fund
XLE
 
is our final Top Buy. This ETF aims to give investors broad exposure to S&P 500 energy stocks. Energy stocks have seen one of the biggest winners thus far in 2021 as the world reopens. The ETF is on the smaller side with $9,721,956,813.60 AUM. The ETF has also seen consistently positive fund flows with a 90-day fund flow of $3,643,807,195.30, 30-day fund flow of $471,422,758.45, and 1-week fund flow of $201,738,657.95. With a net expense ratio of .13%, this ETF is fairly attractive as well.

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