10 Power-Packed ETFs To Buy For Second-Half 2020

Wall Street extended its best quarterly performance in decades to start the second half buoyed by improving activities in the economy. Rounds of recent data suggest that the U.S. economy has been recovering faster than expected from the COVID-19 pandemic.

This is especially true as it created 4.8 million jobs in June, the highest since the Labor Department began keeping records in 1939, as more restaurants and bars resumed operations. Manufacturing activity rebounded in June, hitting its highest level in more than a year while consumer confidence logged in the biggest gain since 2011. Additionally, unprecedented monetary and fiscal stimulus, a technology sector boom, and potential coronavirus vaccines or treatment have added to the strength.

However, the second wave of coronavirus infection and U.S.-China tensions continued to weigh on the stocks lately.

Given these, we have highlighted a pack of ETFs that are poised to outperform in the second half:

Invesco QQQ (QQQ - Free Report): The recent broad market rally has made Nasdaq Composite Index an outperformer this year powered by the soaring technology sector, which accounts for nearly half of the portfolio. The trend is likely to continue with QQQ looking like an excellent pick. This ETF provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq. It is one of the largest and most popular ETFs in the large-cap space with AUM of $123.2 billion and charges investors 20 bps in annual fees. The product has a Zacks ETF Rank #1 (Strong Buy).

WisdomTree Cloud Computing Fund WCLD: The pandemic has resulted in a dramatic shift in consumer behavior toward the digital world. Cloud computing has encouraged video conferencing, gaming, e-commerce, remote project collaboration, online classes and several other programs. This fund offers exposure to emerging, fast-growing U.S.-listed companies (including ADRs) primarily focused on cloud software and services. It charges investors 45 bps in fees per year and has amassed $498.4 million in its asset base. The fund has a Zacks ETF Rank #2 (Buy).

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