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5 Low-Cost Top-Ranked ETFs to Tap at Discounted Prices
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Stocks have been experiencing a turbulent phase of late due to the coronavirus’ heavy blow on the economy and the oil price war. Amid this, some analysts believe that markets have hit a bottom and might turn around while some predict more pain ahead (read: Do Low Volatility ETFs Outperform During Market Turmoil?).
Meanwhile, global central banks and governments have been coming up with a series of massive stimulus to alleviate the effect of the virus. The Fed cut rates to zero and restarted QE measures. Meanwhile, the Trump administration is negotiating a massive $850-billion stimulus package with Congress (read: U.S. Dollar Climbs: ETFs to Gain/Lose).
Japan’s Prime Minister Shinzo Abe plans to launch massive pandemic stimulus. Also, there is likelihood of buying of exchange-traded funds by the Bank of Japan and public pension funds. The ECB has also announced a new, expanded program to buy up to 750 billion euros ($820 billion) in government and private sector bonds as well as commercial paper by year-end. Many other central banks are cutting rates to record low levels and announcing pandemic package (read: ETFs to Gain on ECB's Coronavirus Emergency Stimulus Rollout).
Investors should note that the Dow Jones, the S&P 500 and the Nasdaq Composite lost at least 25% from their all-times highs achieved in mid-February, ensuring a bear market. While looking at the corporate earnings strength, the S&P 500 companies’ earnings are expected to decline 1.7% in the first quarter of 2020, per Earnings Trends issued on Mar 17, 2020. Technology and Medical sectors are expected to log 5.1% and 3.4% growth, respectively.
The estimates do not appear that bad given the severity of the pandemic. But the question is whether analysts were able to take the exact impact of the pandemic into account. Only the release of Q1 earnings results will tell.
Still, markets can’t stay at this level for long. No one really knows when the coronavirus-induced market turmoil will ease but the rollout of gigantic global stimulus signals light at the end of the tunnel (read: Has Wall Street's March Madness Peaked? ETFs to Tap).
ETFs Available for Cheap
Against this backdrop, we highlight a few ETFs that lost heavily in the latest Wall Street carnage. These ETFs have a Zacks Rank #1 (Strong Buy) or 2 (Buy), very cheap expense ratios in the respective spaces and one-month loss of at least 30%
These ETFs are likely to turn around once the virus contagion is contained, consumer confidence improves and investors’ sentiments rise.
Image: Bigstock
5 Low-Cost Top-Ranked ETFs to Tap at Discounted Prices
Stocks have been experiencing a turbulent phase of late due to the coronavirus’ heavy blow on the economy and the oil price war. Amid this, some analysts believe that markets have hit a bottom and might turn around while some predict more pain ahead (read: Do Low Volatility ETFs Outperform During Market Turmoil?).
Meanwhile, global central banks and governments have been coming up with a series of massive stimulus to alleviate the effect of the virus. The Fed cut rates to zero and restarted QE measures. Meanwhile, the Trump administration is negotiating a massive $850-billion stimulus package with Congress (read: U.S. Dollar Climbs: ETFs to Gain/Lose).
Japan’s Prime Minister Shinzo Abe plans to launch massive pandemic stimulus. Also, there is likelihood of buying of exchange-traded funds by the Bank of Japan and public pension funds. The ECB has also announced a new, expanded program to buy up to 750 billion euros ($820 billion) in government and private sector bonds as well as commercial paper by year-end. Many other central banks are cutting rates to record low levels and announcing pandemic package (read: ETFs to Gain on ECB's Coronavirus Emergency Stimulus Rollout).
Investors should note that the Dow Jones, the S&P 500 and the Nasdaq Composite lost at least 25% from their all-times highs achieved in mid-February, ensuring a bear market. While looking at the corporate earnings strength, the S&P 500 companies’ earnings are expected to decline 1.7% in the first quarter of 2020, per Earnings Trends issued on Mar 17, 2020. Technology and Medical sectors are expected to log 5.1% and 3.4% growth, respectively.
The estimates do not appear that bad given the severity of the pandemic. But the question is whether analysts were able to take the exact impact of the pandemic into account. Only the release of Q1 earnings results will tell.
Still, markets can’t stay at this level for long. No one really knows when the coronavirus-induced market turmoil will ease but the rollout of gigantic global stimulus signals light at the end of the tunnel (read: Has Wall Street's March Madness Peaked? ETFs to Tap).
ETFs Available for Cheap
Against this backdrop, we highlight a few ETFs that lost heavily in the latest Wall Street carnage. These ETFs have a Zacks Rank #1 (Strong Buy) or 2 (Buy), very cheap expense ratios in the respective spaces and one-month loss of at least 30%
These ETFs are likely to turn around once the virus contagion is contained, consumer confidence improves and investors’ sentiments rise.
Schwab U.S. Large-Cap Value ETF (SCHV - Free Report)
Zacks ETF Rank: #2
Expense Ratio: 0.04%
One-Month Loss: Down 30.7%
Fidelity MSCI Information Technology Index ETF (FTEC - Free Report)
Zacks ETF Rank: #1
Expense Ratio: 0.08%
One-Month Loss: Down 30.0%
Materials Select Sector SPDR Fund (XLB - Free Report)
Zacks ETF Rank: #2
Expense Ratio: 0.13%
One-Month Loss: Down 31.6%
SPDR S&P Internet ETF
Zacks ETF Rank: #2
Expense Ratio: 0.35%
One-Month Loss: Down 36.7%
SPDR S&P Biotech ETF (XBI - Free Report)
Zacks ETF Rank: #2
Expense Ratio: 0.35%
One-Month Loss: Down 32.1%
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