5 ETFs You Can't Help Falling In Love With

After stepping back in the final months of 2018, bulls once again fall in love with Wall Street at the start of this year given the dovish Fed, a strong jobs market and a slew of positive developments. Signs of progress over trade negotiations between the United States and China have renewed the appeal for riskier assets. In the latest step, President Donald Trump signaled he might extend a deadline on the U.S.-China trade war ceasefire.

Additionally, oil price has shown a strong rebound and recovered about half of the losses made in the final quarter of 2018. The real optimism came from OPEC-led fresh crude output cuts, where major oil producers have agreed to curb production by 1.2 million barrels per day during the first six months of 2019 in order to tackle global supply glut and rebalance the oil market. Additionally, U.S. sanctions against Venezuela and falling OPEC production led to a spike in oil price.

The bullish trend is expected to continue this year given a stronger U.S. economy though the still-unresolved U.S.-China trade war, global growth concerns, geopolitical tensions, and Brexit continue to block the path of the bulls.

Against this backdrop, several ETFs have shown strong resiliency and a solid relationship with investors, gaining in double digits. As such, we have highlighted five ETFs that continue to receive investors’ affection as these have potentially superior weighting methodologies and a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).

SPDR S&P Software & Services ETF (XSW - Free Report) – Up 20.7%

This fund targets the software and services segment and follows the S&P Software & Services Select Industry Index. It holds 154 stocks in its basket, charging 35 bps in annual fees. XSW has accumulated $157.4 million and trades in paltry volume of 20,000 shares a day on average. It has a Zacks ETF Rank #2 with a High risk outlook.

Invesco Russell MidCap Pure Growth ETF (PXMG - Free Report) – Up 20%

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