6 Hot ETFs That Could Be Investors' Darling In February

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After a shaky month, Wall Street started February on a solid footing as the retail trading frenzy for the stocks like GameStop (GME - Free Report) cools down. Additionally, talks over economic stimulus and rounds of solid earnings from big tech players like Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) added to the strength.

Continued optimism over new vaccines, more vaccinations, and easing restrictions are also driving the stock higher. Though U.S. manufacturing activity slowed down slightly last month, measure of prices paid by factories for raw materials and other inputs jumped to its highest level in nearly 10 years, strengthening expectations inflation will perk up this year. Further, near-zero interest rates are the major catalysts to the stocks.

Amid such a backdrop, a few ETFs have garnered solid investors’ interest to start a New Year and will continue to be their darlings in the month of love. Below we have highlighted six of them, per etf.com:

Financial Select Sector SPDR Fund (XLF - Free Report)

The ultra-popular XLF has been the most-popular ETFs so far this year, gathering $4.3 million in capital. The steepening of the yield curve, where long-term yields rise faster than the short term, will expand profits of banks, insurance companies, discount brokerage firms, and asset managers, thereby resulting in a spike to this ETF.

It seeks to provide exposure to 65 companies in the diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts ("REITs"), consumer finance, and thrifts and mortgage finance industries. It has AUM of $30.5 billion and charges 12 bps in annual fees. The fund trades in an average trading volume of 48.6 million shares and has a Zacks ETF Rank #3 (Hold).

iShares MSCI EAFE Value ETF (EFV - Free Report)

This ETF has accumulated about $3.3 billion in the first few weeks of 2021, bringing its total AUM to $10.6 billion. The coronavirus vaccine will end the pandemic crisis, keeping the global economy recovery intact, and will boost consumer spending and in turn lift value stocks. As corporate earnings improve and yields started to creep up, value investing seems more tempting.

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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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William K. 2 weeks ago Member's comment

Thanks for some encouraging news.