5 Top-Ranked ETFs To Buy At Bargain Prices

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With the easing of Omicron fears, Wall Street jumped to start a new week after a broad market sell-off in the past couple of weeks. Growth concerns and Fed’s speedy taper talks have made many ETFs attractive at the current levels.

As such, the beaten-down prices have charged up investors to snap up ETFs on the cheap. Investors could definitely look to these products for outsized gains over the longer term. Some of these are Invesco S&P MidCap Value with Momentum ETF (XMVM - Free Report), Vanguard Financials ETF (VFH - Free Report), SPDR S&P Retail ETF (XRT - Free Report), SPDR S&P Biotech ETF (XBI - Free Report), and Invesco S&P 500 Enhanced Value ETF (SPVU - Free Report).

Market Trends

The tech-heavy Nasdaq Composite Index rose 0.9% while the S&P 500 and Dow Jones gained 1.2% and 1.9%, respectively. The Russell 2000 Index outperformed, climbing 2.1%.

Bets that the new COVID-19 variant Omicron may cause milder illness than previously feared, renewed confidence in consumer and travel demand. Dr. Anthony Fauci, the White House's chief medical adviser, said that early indications of Omicron suggest that it may be less dangerous than the Delta variant.

Additionally, the wider reach of vaccinations and COVID-19 boosters should help to reduce infections caused by the new variant of COVID-19. Consumer confidence is stronger than expected, hiring has picked up and wages are rising. While inflation is rising at the fastest pace in 30 years, retail sales remain robust. Further, the U.S. service sector activity gauge hit a record high in November as businesses expedited hiring.

How to Find Bargain ETFs?

Using our database, first we have selected ETFs with a Zacks Rank #1 (Strong Buy) or 2 (Buy). This is because these ranks suggest strengthening fundamentals and superior weighting methodologies that could allow them to move higher than their cousins in a booming market. Then, we narrowed down the list to funds having a lower P/E ratio than 27.10 for the broad market fund (SPY - Free Report). Further, these ETFs have a lower expense ratio of below 0.50% and are among the popular options with AUM of at least $1 billion.

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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 ...

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