The latest Fed minutes came in dovish which indicates thatofficials may not be ready to go for tightening the policy as yet. According to the minutes of the U.S. central bank's June policy meeting, the Fed officials felt considerable improvement on the economic recovery "was generally seen as not having yet been met," though they are watchful of the inflation concerns.

The minutes indicated that the Fed officials are worried about new inflation risks but still-relatively-high unemployment has been keeping them from tightening the monetary policies. After its meeting and statement last month, investors started to fear that the Fed would tighten the policy more quickly than previously expected.

The benchmark U.S. treasury yield dropped to 1.33% on Jul 7 thanks to the dovish Fed minute from 1.48% seen at the start of the month. Against this backdrop, below we highlight a few ETFs that should be gainful in the coming days.

Invesco QQQ (QQQ Quick QuoteQQQ - Free Report) ) – Zacks Rank #2 (Buy)

The minutes led the Nasdaq to a new high as rates are likely to remain lower for longer. Moreover, fears of delta variant of COVID-19 are also causing higher demand for the tech stocks as these are winning ones amid stay-at-home trend. Since the Nasdaq is tech-heavy, low rates should boost this fund.

The underlying Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The fund charges 15 bps in fees (read: Nasdaq at New Peak: ETFs to Tap the Surge).

SPDR S&P 500 ETF (SPY Quick QuoteSPY - Free Report)  – Zacks Rank #2

This fund gives exposure to both growth and value stocks. Information technology takes about 27.6% of the fund, followed by 13.1% in healthcare, 12.4% in the consumer discretionary and 11.1% in financials.  

The underlying S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups. It charges 9 bps in fees.

iShares Russell Top 200 Growth ETF (IWY Quick QuoteIWY - Free Report) – Zacks Rank #2

As growth stocks prevail in a low-rate environment, IWY should gain materially. Low rates have been instrumental in pushing the fund higher this year (read: 10 Top-Performing ETFs of the Past Decade).

Materials Select Sector SPDR ETF (XLB Quick QuoteXLB - Free Report) – Zacks Rank #1 (Strong Buy)

Higher pent-up demand and a gradually improving labor market should boost the inflationary pressure and increase the price of materials. The underlying Materials Select Sector Index seeks to provide an effective representation of the materials sector of the S&P 500 Index. The fund puts 68.11% in the chemical sector, followed by 14.1% in metals and mining, and 13% in container and packaging. It charges 12 bps in fees.

OShares U.S. Quality Dividend ETF (OUSA Quick QuoteOUSA - Free Report) – Zacks Rank #2

Dividend payments were mostly stalled in the year 2020 as the coronavirus-led corporate cash crunch led to the announcement of dividend cuts. But now the hikes are back. Howard Silverblatt, senior index analyst from S&P Global Indices expects the overall dividend payout for the S&P 500 to increase 5% in 2021, per the CNBC article (read: Dividend Hikes Are Back: Buy These ETFs).

Moreover, current low-rate environment would propel investors to go for dividend-paying ETFs so that investors can enjoy some decent current income. The underlying OShares U.S. Quality Dividend Index of the fund OUSA measures the performance of large-capitalization and mid-capitalization dividend-paying issuers in the United States. The fund yields 1.54% annually.

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