A Pack Of ETFs To Buy For 2019

With heightened volatility and uncertainty last year, U.S. stocks logged in their biggest annual losses since 2008. The S&P 500 and Dow Jones fell for the first time in three years while Nasdaq snapped a six-year winning streak. U.S.-China trade woes and slower global growth were the major culprits.

Rising interest rates in the United States, worries about increased regulation of the technology sector, political malaise in Europe and slowing growth in emerging and developed markets also resulted in the market gyrations. The slump sparked concerns over the nearly decade-long bull run. Most of these headwinds are likely to persist this year as well, suggesting that volatility will continue to show up.

The partial government shutdown entered the third week with lack of progress in passing a spending bill, wherein Trump demanded $5.6 billion funding for a border wall. The bill has been opposed by the Democrats. However, booming economic growth buoyed by an impressive labor market, higher wages, increasing consumer spending and rising consumer confidence will likely keep the momentum alive in the stock market. Notably, the American economy is on track this year to expand at the fastest pace in 13 years. Additionally, any signs of a trade deal between the United States and China will instill optimism into the broad markets.

Given this, we have highlighted a pack of ETFs that are poised to outperform in 2019 given the current trends:

iShares Core S&P Small-Cap ETF (IJR - Free Report) : Small-caps are expected to outperform this year as these are well insulated from international headwinds such as global growth worries and trade war. These pint-sized stocks are considered safe and better plays if any political issue or economic turmoil creeps into the picture. IJR, offering broad exposure to U.S. small-cap stocks, seems a compelling choice. It has AUM of $38.2 billion and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

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