Wall Street went through a rough patch in November. The Dow Jones Industrial Average and S&P 500 indices fell 3.7% and 0.8% respectively during the month. The Russell 2000 Index lost 4.3% on the month, marking its worst since March 2020.
The omicron variant stole some year-end rally thunder. A weakness is observed on the stock markets because there is still a lot of ambiguity about the seriousness of the new strain and the effectiveness of existing vaccines.
The growing cases due to the new variant have scared investors. They fear that the implementation of new lockdown measures to control the spread could harm the global economic recovery achieved so far, after economies reopen. However, some market analysts are anticipating a market rally in December. According to Bank of America, the S&P 500 Index has risen 2.3% on average since 1936 and remained positive 79% of the time in December, as mentioned in the CNBC article.
Meanwhile, Federal Reserve Chairman Jerome Powell negatively impacted market sentiment by mentioning that the central bank would discuss speeding up the downsizing process from the $ 15 billion per month schedule. previously decided, according to a CNBC article. This step could be taken to control the still high inflation levels, as the US economy is strongly recovering from the crisis caused by the pandemic.
Against this background, let’s take a look at a few top-ranked ETFs that investors can consider to garner good returns:
IShares Biotechnology ETFs IBB
It is undeniable that the pandemic has opened up investment opportunities in the biotechnology sector by triggering a race to introduce vaccines and treatment options. Additionally, increasing mergers and acquisitions (M&A), the growing dominance of AI, and favorable regulatory news continue to work in favor of the biotech market.
Ongoing, full FDA approval for COVID-19 vaccines to some developers has increased confidence to impose vaccine warrants. In addition, the unvaccinated population is now more likely to opt for vaccination. Now, the nod for booster shots can probably boost people’s confidence in the vaccination. This update will accelerate demand for coronavirus vaccines and improve the company’s finances. Additionally, space has received increasing attention in recent times, largely due to the resurgence of COVID-19 infections due to the omicron variant.
iShares Biotechnology ETF seeks to replicate the investment results of an index composed of US-listed stocks in the biotechnology sector. IBB has around 265 securities in its basket. iShares Biotechnology ETF has assets under management of $ 9.77 billion, with an expense ratio of 0.45%. IBB carries a Zacks ETF # 1 (strong buy) ranking (read: Moderna ETFs mobilize on COVID-19 Vaccine News to fight Omicron).
Invesco S&P 500 Equal Weight Technology ETF RYT
Technology is playing a key role in the uncertainty surrounding COVID-19 by helping people maintain safe distance standards. Telemedicine and digital health are given considerable importance. Data management and storage have become essential aspects of healthcare in today’s era. So, with the technological advancements in the healthcare industry and the increasing adoption of IT solutions in healthcare as well as the benefits of using the cloud in healthcare, the cloud computing market is on the market. a growth trajectory.
Some other ânormal newsâ trends have also emerged amid the health crisis, such as working from home, increasing digital payments, the growth of video streaming, and surging video game sales. The work-from-home model has increased sales of PCs, laptops, and other types of computer peripherals.
The Invesco S&P 500 Equal Weight Technology ETF is based on the S&P 500 Equal Weight Technology Index. RYT has approximately 77 stocks in its basket. The Invesco S&P 500 Equal Weight Technology ETF has assets under management of $ 2.83 billion, with an expense ratio of 0.40%. RYT sports a Zacks ETF # 1 ranking (read: 7 tech ETFs that survived the recent turmoil).
Vanguard Mid-Cap Value ETF VOE
Given the mixed feelings, mid-cap funds are gaining attention as they offer both growth and stability compared to their small and large-cap counterparts. So investors looking to capitalize on strong fundamentals but worried about uncertainty should consider mid-cap ETFs.
Vanguard MidCap Value ETFi are based on the CRSP US Mid Cap Value Index. VOE has around 208 stocks in its basket. The Vanguard MidCap Value ETF has $ 15.25 billion AUM, with an expense ratio of 0.07%. VOE has a Zacks ETF # 1 ranking.
The SPDR Financial Select Sector Fund XLF
Several factors can work in favor of the financial sector. The Federal Reserve decreasing its monthly bond purchases may be good for the space. The shift to tighter monetary policy will push yields higher, helping the financial sector. Indeed, rising rates will help boost profits for banks, insurance companies, discount brokerage firms and asset managers. In particular, the steepening of the yield curve (the difference between short and long-term interest rates) is likely to support banks’ net interest margins. As a result, net interest income, which constitutes a large part of bank income, is expected to be supported by the steepening of the yield curve and a modest increase in credit demand.
The Financial Select Sector SPDR Fund seeks to provide investment results which, before fees and expenses, generally correspond to the total return of the Financial Select Sector Index. XLF has assets under management of $ 41.80 billion and charges 0.12% in expense ratio. XLF carries a Zacks ETF Rank # 1.
Invesco NASDAQ Internet ETF PNQI
The pandemic has been a blessing in disguise for the e-commerce industry to this day, as people continue to practice social distancing and purchase all essentials online, especially food items. So, along with the digitalization trend, the upcoming holiday season in the United States is expected to see a significant increase in online sales. In addition, the expansion of digitization and the growing dependence on the internet due to some new normal trends such as working from home, digital payments, digitization of healthcare, growing demand for games video and many other factors paint a rosy picture for the space.
The Invesco NASDAQ Internet ETF seeks to provide investment results that, before fees and expenses, generally match the total return of the Nasdaq CTA Internet Index. PNQI has assets under management of $ 948.1 million and charges 0.60% in expense ratio. PNQI sports a Zacks ETF # 2 (Buy) ranking (read: ETF to win / lose on PayPal’s refusal to acquire Pinterest).
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iShares Biotechnology ETF (IBB): ETF Research Reports
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
ETF Invesco S&P 500 Equal Weight Technology (RYT): ETF Research Reports
Invesco NASDAQ Internet ETF (PNQI): ETF Research Reports
ETF Vanguard MidCap Value (VOE): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.