Top ETFs To Diversify Your Portfolio This Month

ETF investing offers several advantages. ETFs, give investors the benefit of trading flexibility, portfolio diversification, and risk management. For today’s market conditions, this is especially relevant. Stocks have been on quite a run since they bottomed last March. However, there are still several headwinds and concerns. ETFs are a great way to diversify your portfolio and hedge these risks while still keeping some upside. Especially if you want to invest in a hot sector but do not necessarily know which stock to pick or if you’d prefer not to take any asset-specific risks, with valuations quite frothy right now for many individual stocks, ETFs can help. Q.ai’s deep learning algorithms have identified several Top Dividend ETFs, Top Tech ETFs, Top Growth ETFs, Top Value ETFs, and Top Consumer ETFs based on 90-day, 30-day, and 1-week fund flows. 

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Top Dividend ETFs

iShares Core High Dividend ETF (HDV)

The iShares Core High Dividend ETF
HDV
is our first Top Dividend ETF. The ETF focuses on tracking an index of relatively high dividend paying U.S. stocks, and offers investors exposure to 75 high quality and established U.S. companies. The iShares Core High Dividend ETF has $5,790,604,301.40 AUM and is on the smaller side. The ETF has seen mixed fund flows, with a fund flow of $35,083,975.00 over the last 90-days, $-44,344,345.00 over the last 30-days, and $-4,337,315.00 over the last week. The ETF also has a decent net expense ratio of 0.08%.

iShares Select Dividend ETF (DVY)

The iShares Select Dividend ETF
DVY
 is our next Top Dividend ETF. The ETF also focuses on tracking an index of relatively high dividend paying U.S. stocks, and offers exposure to broad-cap U.S. companies with a consistent history of dividends. The ETF holds 100 U.S. stocks with at least a 5-year record of paying dividends. The ETF has $15,070,190,033.00 AUM and is larger than the iShares Core High Dividend ETF, but is still on the smaller side. The ETF has seen mixed fund flows, with a fund flow of $203,430,315.00 over the last 90-days,$-109,634,515.00 over the last 30-days, and $-34,451,315.00 over the last week. The ETF has a pricier net expense ratio of 0.39%.

SPDR S&P Dividend ETF (SDY) 

The last Top Dividend ETF on our list is the SPDR S&P Dividend ETF
SDY
. The SPDR S&P Dividend ETF focuses on the highest dividend yielding S&P stocks that have consistently increased dividends for at least 20 years in a row, while excluding REITS. The SPDR S&P Dividend ETF holds $17,046,534,566.11 AUM, and is smaller compared to many other ETFs.  The ETF has also seen consistently negative fund flows, with a fund flow of $-1,192,074,636.85 over the last 90-days, $-307,153,433.75 over the last 30-days, and $-1,389,914,426.50 over the last week. The SPDR S&P Dividend ETF has a net expense ratio of 0.35% which is on the pricier side. 

Top Tech ETFs

VanEck Vectors Semiconductor ETF (SMH)

The first Top Tech ETF this month according to our AI systems is the VanEck Vectors Semiconductor ETF
SMH
. This ETF aims to follow and track the overall performance of companies involved in semiconductor production and equipment. This ETF is unique compared to other semiconductor focused ETFs, because their holdings are not limited to exclusively US companies. Based on AUM, it is on the smaller side with $4,406,336,111.66 AUM. It has seen mixed fund flows of $618,943,156.50 over the last 90-days, $321,584,695.00 over the last 30-days, and $-9,916,715.00over the last week. Its net expense ratio of 0.35% is also on the pricier side. 

Technology Select Sector SPDR Fund (XLK)

The next Top Tech ETF is the Technology Select Sector SPDR Fund
XLK
. This ETF seeks to track the performance of the technology and telecom sector of the S&P 500. It has $38,627,245,337.48 AUM, which is relatively middle-of-the-pack. It has seen consistently negative fund flows, with a fund flow of  $-713,379,623.70 over the last 90-days, a fund flow of $-509,324,021.60 over the last 30-days, and a fund flow of $-31,757,382.65 over the last week. Its net expense ratio of 0.13% is also considerably cheaper than other tech ETFs.

Invesco QQQ Trust (QQQ)

The Invesco QQQ
QQQ
 Trust is our last Top Tech ETF. 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 by far the largest Tech ETF on our list with $155,660,446,140.00 AUM. It has seen consistently negative fund flows with a 90-day fund flow of $-3,518,607,094.50, 30-day fund flow of $-486,390,297.00, and 1-week fund flow of $-876,117,135.00. Its net expense ratio of 0.2% is also decent.

Top Growth ETFs

iShares Russell Top 200 Growth ETF (IWY)

The iShares Russell 2000 Growth ETF
IWY
 is our first Top Growth ETF. This ETF tracks an index made up of the top large-cap growth stocks in the US such as Apple
AAPL
, Microsoft
MSFT
, Amazon
AMZN
, Facebook, and Alphabet. The fund is on the smaller side with $3,558,056,000.15 AUM. It has also seen mixed fund flows, with a 90-day fund flow of -$16,169,470.00, a 30-day fund flow of $34,315,630.00, and 1-week fund flow of $93,257,610.00. Its net expense ratio of 0.2% is decent. 

Vanguard Growth ETF (VUG)

The next Top Growth ETF is the Vanguard Growth ETF
VUG
. This ETF also holds similar stocks as the iShares Russell Top 200 Growth ETF, and seeks to give investors exposure to a basket of large-cap growth stocks. The ETF has $69,470,708,706.57 AUM and is more on the medium-sized side. It has seen mixed fund flows, with a 90-day fund flow of -$109,680,691.55, 30-day fund flow of -$891,343,474.68, and 1-week fund flow of $78,451,597.14. With a net expense ratio of 0.04%, this ETF is also extremely cheap and attractive to own.

Vanguard Mega Cap Growth ETF (MGK)

The Vanguard Mega Cap Growth ETF
MGK
is our final Top Growth ETF. This ETF also focuses on large-cap growth stocks, and aims to provide a convenient way for investors to get diversified exposure to the largest growth stocks in the U.S. market. The ETF has $10,173,032,481.60 AUM and is on the smaller  side. It has seen mixed fund flows, with a 90-day fund flow of -$452,295,750.00, 30-day fund flow of -$61,304,250.00, and 1-week fund flow of $30,920,000.00. With a net expense ratio of 0.07%, this ETF is quite cheap.

Top Value ETFs

iShares S&P Mid-Cap 400 Value ETF (IJJ)

The first Top Value ETF on our list is the iShares S&P Mid-Cap 400 Value ETF
IJJ
. This ETF tracks an index of mid-cap value stocks, with top holdings consisting of familiar names such as Lear Corp
LEA
, Alleghany Corp
Y
, Owens Corning
OC
, East West Bancorp
EWBC
, and Reliance Steel. The ETF is smaller-sized and has $6,912,408,895.00 AUM. It has also seen consistently positive fund flows. The ETF has a 90-day fund flow of $1,172,489,640.00, 30-day fund flow of $1,130,111,555.00, and 1-week fund flow of $725,206,400.00. Its net expense ratio of 0.18% is decent as well. 

iShares Russell 2000 Value ETF (IWN)

The next Top Value ETF is the iShares Russell 2000 Value ETF
IWN
. The Russell 2000 has surged since November, and value stocks on the index could continue the run with aggressive stimulus appearing to be imminent. This ETF tracks a basket of undervalued small-cap stocks that trade on the Russell 2000 and could especially benefit. In terms of AUM, the ETF is on the smaller side with $13,285,379,516.80 AUM. The ETF has seen mixed fund flows, with a fund flow of $1,735,343,355.00 over the last 90-days, a fund flow of $463,339,590.00 over the last 30-days, and a 1-week fund flow of -$90,742,575.00. Its net expense ratio of 0.24% is decent.

First Trust Large Cap Value AlphaDEX Fund (FTA)

The last Top Value ETF on our list is the First Trust Large Cap Value AlphaDEX Fund
FTA
. This ETF tracks an index of stocks from the NASDAQ
NDAQ
US 500 Large Cap Value Index such as GM, Lumen, Exxon Mobil
XOM
, Lennar
LEN
, and ViacomCBS. The ETF is the smallest on this month’s list with only $795,150,114.00 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $27,050,500.00, 30-day fund flow of $3,476,500.00, and 1-week fund flow of $2,874,000.00. The ETF is quite expensive to own with a costly net expense ratio of 0.62%. 

Top Consumer ETFs 

Vanguard Consumer Discretionary ETF (VCR)

The Vanguard Consumer Discretionary ETF
VCR
 is our first Top Consumer ETF. This ETF tracks an index of consumer discretionary stocks such as stocks of companies that manufacture products and provide services that consumers purchase on a discretionary basis. The ETF is smaller-sized and has only $5,258,426,248.48 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $512,844,185.70, 30-day fund flow of $210,310,544.34, and 1-week fund flow of $14,879,500.54. The ETF has a cheap and attractive net expense ratio of only 0.1%.   

iShares US Consumer Goods ETF (IYK)

The iShares US Consumer Goods ETF
IYK
is our next Top Consumer ETF. This ETF aims to give investors exposure to U.S. companies in the consumer goods sector, specifically companies that produce a wide range of consumer goods, including food, automobiles, and household goods. The ETF is one of the smallest on this month’s list with only $771,662,403.60 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $17,845,140.00, 30-day fund flow of $17,789,865.00, and 1-week fund flow of $17,727,870.00. The ETF has a relatively pricey net expense ratio of 0.44%. 

SPDR S&P Homebuilders ETF (XHB)

Our final Top Consumer ETF for this month is the SPDR S&P Homebuilders ETF
XHB
. This ETF targets the red-hot homebuilding sector, and gives investors exposure to companies that engage in not only homebuilding, but also building products, home furnishings, home improvement retail, home furnishing retail, and household appliances. The ETF is smaller-sized with only $1,397,841,116.16 AUM. It has seen inconsistent fund flows, with a 90-day fund flow of -$233,435,010.40, 30-day fund flow of $8,666,542.40, and 1-week fund flow of -$24,379,972.65. The ETF’s net expense ratio of 0.35% is not the greatest.  

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