Below is a look at ETFs that currently offer attractive buying opportunities.
The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively.
Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term ‘buy on the dip’ opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.
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A total of 61 ETFs made it to the list of buy on the dip prospects this month. The three major U.S. indices moved lower during this month. Dim prospects of progress in U.S.-China trade talks is rattling financial markets. Consumer Discretionary Select Sector SPDR Fund (XLY A) which tracks an index of S&P 500 consumer discretionary stocks, was one of the top performers in the list of buy on the dip prospects. The consumer discretionary sector lost over 1% in the last month. The recent Sino-American trade talks took a toll over the consumer sector, as international markets form a major portion of revenues for most of the consumer goods companies. Technology Select Sector SPDR Fund (XLK A) which tracks the performance of S&P 500 technology stocks, also featured on the list of buy on the dip prospects, as the technology sector declined by 1.7% during the month. Semiconductor ETFs such as iShares PHLX Semiconductor ETF (SOXX B+) and VanEck Vectors Semiconductor ETF (SMH A-) also made it to the list as the semiconductor segment dipped by more than 9% during the same time. The technology sector was adversely affected after the U.S. banned China’s Huawei Technologies, from buying components/ technology from the U.S. without government approval. Huawei was the third largest semiconductors buyer in the last year. Several industrial ETFs like SPDR Dow Jones Industrial Average ETF (DIA A-) and Industrial Select Sector SPDR Fund (XLI A) ranked amongst the buy on the dip contenders as the industrials sector registered a fall of more than 2% during the month. Financial Select Sector SPDR Fund (XLF A) and Direxion Daily Financial Bull 3X Shares (FAS A-) also made it to the list as the financials sector fell by more than 1% during the month. Several ETFs which provide an exposure to the S&P 500 index like ProShares UltraPro S&P 500 (UPRO B+), ProShares Ultra S&P500 (SSO A) and Direxion Daily S&P 500 Bull 3X Shares (SPXL B+) were present on this month’s buy on the dip prospects’ list as the index lost 1% during the month. S&P 500 has witnessed its worst week so far in 2019. Many country focused ETFs such as iShares MSCI China ETF (MCHI A), SPDR EURO STOXX 50 ETF (FEZ A-), and Vanguard FTSE Emerging Markets ETF (VWO A) also made it to the list of buy on the dip prospects list week as global markets fell since the trade war between the U.S. and China heightened. Check out our Emerging Markets Equities ETFs by clicking “here:â€https://etfdb.com/etfdb-category/emerging-markets-equities/
_To compare this month’s list with the one published on April 24, click “here.â€:https://etfdb.com/news/2019/04/24/buy-on-the-dip-april-24-2019-edition/
| Ticker | Name | Price | 1-YearReturn | Leverage |
|---|---|---|---|---|
| (QLD A) | ProShares Ultra QQQ | $94.40 | 12.29% | Double-Long |
| (XLY A) | Consumer Discretionary Select Sector SPDR Fund | $116.80 | 10.87% | Long |
| (TQQQ B) | ProShares UltraPro QQQ | $60.73 | 10.55% | Triple-Long |
| (QQQ A-) | Invesco QQQ Trust | $184.93 | 9.44% | Long |
| (XLK A) | Technology Select Sector SPDR Fund | $75.99 | 9.31% | Long |
| (IWF A+) | iShares Russell 1000 Growth ETF | $154.93 | 9.27% | Long |
| (SPXL B+) | Direxion Daily S&P 500 Bull 3X Shares | $48.62 | 8.55% | Triple-Long |
| (UPRO B+) | ProShares UltraPro S&P500 | $51.21 | 8.36% | Triple-Long |
| (SSO A) | ProShares Ultra S&P500 | $121.16 | 8.36% | Double-Long |
| (DGRO B+) | iShares Core Dividend Growth ETF | $37.41 | 8.03% | Long |
| (SCHX A+) | Schwab U.S. Large-Cap ETF | $68.83 | 5.70% | Long |
| (SPY A) | SPDR S&P 500 ETF | $287.70 | 5.68% | Long |
| (VOO A) | Vanguard S&P 500 ETF | $264.21 | 5.65% | Long |
| (IVV A) | iShares Core S&P 500 ETF | $289.56 | 5.64% | Long |
| (IWB A) | iShares Russell 1000 ETF | $160.10 | 5.54% | Long |
| (VTI A+) | Vanguard Total Stock Market ETF | $147.28 | 4.85% | Long |
| (SCHB A) | Schwab U.S. Broad Market ETF | $69.24 | 4.85% | Long |
| (ITOT A) | iShares Core S&P Total U.S. Stock Market ETF | $65.55 | 4.76% | Long |
| (SOXX B+) | iShares PHLX Semiconductor ETF | $194.60 | 4.74% | Long |
| (DIA A-) | SPDR Dow Jones Industrial Average ETF | $259.16 | 4.51% | Long |
| (XHB A+) | SPDR S&P Homebuilders ETF | $40.50 | 3.90% | Long |
| (IWR A-) | iShares Russell Mid-Cap ETF | $54.77 | 3.65% | Long |
| (VTV A) | Vanguard Value ETF | $108.67 | 2.94% | Long |
| (PCY A) | Invesco Emerging Markets Sovereign Debt ETF | $27.85 | 2.77% | Long |
| (FAS A-) | Direxion Daily Financial Bull 3X Shares | $69.79 | 2.44% | Triple-Long |
| (IWD A) | iShares Russell 1000 Value ETF | $124.91 | 1.76% | Long |
| (XLI A) | Industrial Select Sector SPDR Fund | $75.66 | 1.42% | Long |
| (SMH A-) | VanEck Vectors Semiconductor ETF | $107.50 | 0.91% | Long |
| (EMB A-) | iShares J.P. Morgan USD Emerging Markets Bond ETF | $109.21 | 0.69% | Long |
| (HYG A) | iShares iBoxx $ High Yield Corporate Bond ETF | $85.97 | 0.62% | Long |
| (JNK A+) | SPDR Bloomberg Barclays High Yield Bond ETF | $107.43 | 0.31% | Long |
| (FLOT B+) | iShares Floating Rate Bond ETF | $50.87 | -0.25% | Long |
| (FLRN B) | SPDR Bloomberg Barclays Investment Grade Floating Rate ETF | $30.68 | -0.36% | Long |
| (INDA B+) | iShares MSCI India ETF | $33.61 | -0.59% | Long |
| (SJNK A) | SPDR Bloomberg Barclays Short Term High Yield Bond ETF | $27.09 | -0.99% | Long |
| (XLC n/a) | Communication Services Select Sector SPDR Fund | $49.36 | -1.20% | Long |
| (ACWI A) | iShares MSCI ACWI ETF | $72.54 | -1.29% | Long |
| (MDY B+) | SPDR S&P MidCap 400 ETF | $348.68 | -1.46% | Long |
| (RSX B+) | VanEck Vectors Russia ETF | $21.23 | -2.08% | Long |
| (VT A+) | Vanguard Total World Stock ETF | $73.74 | -2.27% | Long |
| (EWH A) | iShares MSCI Hong Kong ETF | $25.49 | -2.90% | Long |
| (EWC C+) | iShares MSCI Canada ETF | $28.15 | -3.69% | Long |
| (XLF A) | Financial Select Sector SPDR Fund | $27.06 | -4.18% | Long |
| (EWA B+) | iShares MSCI Australia ETF | $21.59 | -5.43% | Long |
| (GDX B+) | VanEck Vectors Gold Miners ETF | $20.56 | -7.76% | Long |
| (EFA A) | iShares MSCI EAFE ETF | $65.20 | -8.79% | Long |
| (FEZ A-) | SPDR EURO STOXX 50 ETF | $37.74 | -8.95% | Long |
| (SCHF A) | Schwab International Equity ETF | $31.36 | -9.21% | Long |
| (VGK A) | Vanguard FTSE Europe ETF | $54.36 | -9.28% | Long |
| (IEFA A+) | iShares Core MSCI EAFE ETF | $61.01 | -9.47% | Long |
| (VEU A) | Vanguard FTSE All-World ex-US ETF | $49.85 | -9.71% | Long |
| (VEA A) | Vanguard FTSE Developed Markets ETF | $40.90 | -9.81% | Long |
| (VXUS A) | Vanguard Total International Stock ETF | $51.59 | -10.12% | Long |
| (EWU A-) | iShares MSCI United Kingdom ETF | $32.90 | -10.79% | Long |
| (EZU A-) | iShares MSCI Eurozone ETF | $39.46 | -11.10% | Long |
| (VWO A) | Vanguard FTSE Emerging Markets ETF | $40.85 | -11.21% | Long |
| (ASHR C+) | Deutsche X-trackers Harvest CSI 300 China A-Shares ETF | $26.96 | -12.41% | Long |
| (EWG B+) | iShares MSCI Germany ETF | $28.30 | -13.77% | Long |
| (MCHI A) | iShares MSCI China ETF | $59.59 | -15.48% | Long |
| (EZA B+) | iShares MSCI South Africa ETF | $54.35 | -18.00% | Long |
| (CHAU B) | Direxion Daily CSI 300 China A Share Bull 2X Shares | $20.83 | -27.42% | Double-Long |
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
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