Trump Sets Bullish Tone: Grab These Top-Ranked ETFs
Trump set a tone of optimism during his first address to the Congress last evening. This is especially true as he reiterated his campaign promises by pledging to boost economic growth and reduce regulations. He talked about the renewal of the American spirit and his wish to MAKE AMERICA GREAT AGAIN (read: Welcome Trump Era with These ETFs).
According to Trump, “Dying industries will come roaring back to life. Heroic veterans will get the care they so desperately need. Our military will be given the resources its brave warriors so richly deserve. Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports and railways gleaming across our very, very beautiful land. Our terrible drug epidemic will slow down and ultimately, stop. And our neglected inner cities will see a rebirth of hope, safety and opportunity.”
Further, the President pledged to overhaul the immigration system, cut corporate tax, provide a massive tax relief for the middle class, improve jobs and wages for Americans, and save billions of dollars. Moreover, he called Congress to repeal-and-replace Obamacare plan and urged them to support a $1 trillion infrastructure bill.
However, the lack of clarity on the achievement of key proposals and their timeline that fueled the rally in the stock market since the election might weigh on investors’ sentiment (read: Trump Set for Maiden Speech to Congress: ETFs in Focus).
Given Trump’s bullish statements, U.S. stocks are expected to continue their rally though bouts of volatility might block their roads in between. Given this, we delved into the Zacks ETF Rank to find the best picks for investors seeking to ride out the current trend. The system takes into account factors such as industry outlook and expert surveys; and then applies ETF-specific factors (like expense ratios and bid/ask spreads) to spot the best funds in each and every corner of the space.
Using this system, we have picked a handful of ETFs that earned a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy) in the latest ratings update, and could thus outperform. Each of these funds has seen their rank surge to the top hierarchy from #3 (Hold) and could be great picks in the Trump era (see: Our Zacks ETF Rank Guide).
Investors should note that these are not confined to a particular sector and instead offers a spread-out exposure.
PowerShares QQQ QQQ
This fund offers exposure to the large-cap equities and follows the Nasdaq 100 index.
Zacks ETF Rank: #1
Expense Ratio: 0.20%
YTD Returns: 9.7%
iShares Russell 2000 Growth ETF IWO
This fund tracks the Russell 2000 Growth Index and offers exposure to the small cap stocks whose earnings are expected to grow at an above-average rate relative to the market (read: 5 Reasons Why Small-Cap ETFs Are Lagging Large Caps in 2017).
Zacks ETF Rank: #1
Expense Ratio: 0.25%
YTD Returns: 4.1%
iShares Core S&P Mid-Cap ETF IJH
This ETF targets the mid cap segment of the broad U.S. market by tracking the S&P MidCap 400.
Zacks ETF Rank: #2
Expense Ratio: 0.07%
YTD Returns: 4.3%
Vanguard Small-Cap Growth ETF VBK
This ETF targets the growth segment of the small cap space and seeks to track the performance of the CRSP US Small Cap Growth Index.
Zacks ETF Rank: #1
Expense Ratio: 0.08%
YTD Returns: 5.4%
Vanguard Extended Market ETF VXF
This product seeks to deliver the performance of a benchmark index that measures the investment return of stocks from small and mid-size companies.
Zacks ETF Rank: #2
Expense Ratio: 0.09%
YTD Returns: 4.6%
First Trust Large Cap Core AlphaDEX Fund FEX
This fund employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index (read: Large-Cap Value ETFs Capitalizing on Renewed Trump Trade).
Zacks ETF Rank: #2
Expense Ratio: 0.61%
YTD Returns: 6.2%
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NASDAQ-100 SHRS (QQQ): ETF Research Reports
ISHARS-RS 2K GR (IWO): ETF Research Reports
ISHARS-SP MID (IJH): ETF Research Reports
VIPERS-SC GRWTH (VBK): ETF Research Reports
VIPERS-EXTD MKT (VXF): ETF Research Reports
FT-LRG CAP COR (FEX): ETF Research Reports
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