Top-Ranked ETFs To Buy As S&P 500 Nears Record High

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The S&P 500 is hovering near record highs as inflation fears have subsided and the economy is witnessing a speedy recovery with millions of Americans fully vaccinated and pandemic restrictions being rolled back. The expanded stimulus and strong corporate earnings are adding to the strength.

Additionally, the bouts of the latest data are bolstering investors’ confidence driving the stocks higher. This is because the combination is leading to pent-up demand, resulting in higher demand for all types of products and services in the economy. Notably, U.S. manufacturing activity hit a record high in May for the second straight month supported by stronger expansion in output and new orders. Meanwhile, the core personal consumption expenditures index increased by 3.1% in April from a year ago, sharply higher than the March reading of 1.9% and the highest reading since 1992.

Further, lower interest rates have made borrowings cheaper, providing a boost to both investment in new projects and repayment of higher-rate debt. Consequently, it leads to strong economic growth and is thus a boon for the stock market.

Moreover, the return of travel demand, after being badly hit over the past year, is infusing fresh optimism into economic growth. More Americans are expected to return to the road. According to TripAdvisor (TRIP - Free Report), about 67% of Americans expect to travel this summer, with 74% staying in the United States. The outdoor activities that American families are eyeing this summer include beach day, socially distanced barbecue day, camping trip, and pool day. The rebound in travel should support further stock rally.

Given the bullish fundamentals, investors seeking to make profits from a further surge in the stock market could consider the following ETFs. These funds are popular options and offer broad exposure to the stock market. These have a Zacks ETF Rank #2 (Buy), suggesting their outperformance in the coming months.

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Disclosure: 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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