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ETF Strategies to Follow as Sino-US Trade Deal Looks Possible

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Progress in the trade deal has instilled optimism among investors. The Dow Jones Industrial Average rose 0.20% to 28,121.68, the S&P 500 gained 0.22% to 3,140.52 and the Nasdaq Composite added 0.18% to 8,647.93 on Nov 26 (read: Wall Street Hits Record High: Leveraged ETFs to Play).

In fact, President Trump’s positive comments on trade deal subdued the impact of certain disappointing U.S. economic fundamentals like consumer confidence and new home sales data for October. Notably, the consumer confidence has fallen for the fourth consecutive month in November. Per The Conference Board, the consumer confidence index slipped to 125.5 in November, comparing unfavorably with 126.1 in October. Meanwhile, the latest new home sales data for October is a little disappointing. According to data provided by the Commerce Department, new home sales declined 0.7% to a seasonally adjusted annual rate of 733,000 units in the month. This compares unfavorably with September’s sales pace that was upwardly revised to 738,000 units from the previously reported 701,000 units.

Going on, Trump commented that the United States has reached the “final throes” of the Sino-US trade deal. This latest update follows China’s Commerce Ministry’s confirmation of a telephonic conversation between the Chinese and U.S. trade negotiators (read: Phase 1 Trade Deal or Not: ETFs to Ride the Trend).

ETF Strategies to Follow

Here we discuss certain ETF strategies to help our investors make the most of the current bull market.

Momentum ETFs Can Make a Right Choice

While the broader stock market is expected to gain from positive development in trade talks, momentum investing will likely take centre stage as investors seek greater returns in the short term. Momentum investing looks to fetch profits from hot stocks that have shown an uptrend over the past few weeks or months. In view of this, investors can consider iShares Edge MSCI USA Momentum Factor ETF (MTUM - Free Report) , Invesco DWA Momentum ETF (PDP), Invesco S&P MidCap Momentum ETF XMMOVictoryShares USAA MSCI USA Value Momentum ETF ULVM and SPDR Russell 1000 Momentum Focus ETF (ONEO - Free Report) (read: Is This the Right Time to Buy Momentum ETFs?).

Growth ETFs Look Attractive

Growth stocks are likely to witness revenue and earnings growth at a faster rate than the industry average. As such, growth funds tend to outperform during an uptrend. While there are plenty of options in the growth ETF world, we have highlighted five funds that offer broad-based exposure to the U.S. stock market like Vanguard Growth ETF (VUG - Free Report) , Schwab U.S. Large-Cap Growth ETF (SCHG - Free Report) , iShares Core S&P U.S. Growth ETF (IUSG - Free Report) , SPDR S&P 500 Growth ETF (SPYG - Free Report) and Vanguard Mega Cap Growth ETF (MGK - Free Report) .

US Agricultural/Livestock ETFs Make Lucrative Picks

The U.S. agricultural sector has seen the worst due to the trade war. However, the latest developments might bring some relief to the sector. Thus, investors can keep an eye on ETFs like  Invesco DB Agriculture Fund (DBA - Free Report) , Teucrium Wheat Fund (WEAT - Free Report) , ELEMENTS Linked to the Rogers International Commodity Index - Agriculture Total Return , iPath Series B Bloomberg Grains Subindex Total Return ETN  and iPath Series B Bloomberg Livestock Subindex Total Return ETN  (see: all the Agricultural ETFs here).

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