5 Beaten Down ETFs & Stocks To Buy Now

After three consecutive weekly losses, Wall Street has rebounded to start this week on rising hopes of monetary stimulus globally as well as renewed trade optimism. This is especially true as major central banks across the globe are taking steps to prop up the slowing economic growth that has eased global recession concerns and in turn given a boost to investor confidence once again.  

Chinese central bank unveiled a key interest rate reform to lower borrowing costs for companies while the German government is ready to potentially free up 50 billion euros ($82 billion) of extra spending. The European Central Bank is expected to cut rates in September and resume a bond-buying program while the Federal Reserve might signal further rate cuts this year. In the rate cut stampede, Mexico was the latest to cut interest rates last week.

In the latest trade development, Washington extended a 90-day temporary license allowing China’s Huawei Technologies to continue doing business with U.S. firms.

Given the rebounding fundamentals, investors should take advantage of the beaten-down prices. For them, we have highlighted five solid picks from both the ETF and the stock worlds that were in red over the past month but have a solid upside potential. All these have a Zacks Rank #1 (Strong Buy) or 2 (Buy).

ETF Picks

SPDR S&P Internet ETF (XWEBFree Report) – Down 11.1%

This product targets the Internet corner of the broad tech space and follows the S&P Internet Select Industry Index. It charges 35 bps in annual fees and trades in a volume of 6,000 shares. With AUM of $27.6 million, the fund holds 44 stocks in its basket and carries a Zacks ETF Rank #2.

iShares U.S. Telecommunications ETF (IYZ - Free Report) – Down 8.4%

This fund follows the Dow Jones U.S. Select Telecommunications Index and offers exposure to 42 American companies that provide telephone and Internet products, services and technologies. It has AUM of $432.9 million and trades in average daily volumes of 489,000 shares. It charges 42 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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