5 Top-Ranked ETFs to Weather the Market Storms
The Federal Reserve finally gave a nod on Mar 16 to the first-rate hike of a 0.25 percentage point since December 2018. At the same time, while taking an aggressive approach to increasing the rates, the central bank informed about plans to increase the interest rates six times this year. The Federal Reserve is aiming at a consensus funds rate of 1.9% by 2022 end (per a CNBC article).
Market fluctuations have been a common phenomenon in 2022 so far. The Russia-Ukraine crisis and inflation at a 40-year high are persistently adding to market ambiguity. As the war tension continues, rising commodity prices and fears of further disruptions in global supply-chain distributions might stoke higher inflation.
Studying the current backdrop, let’s look at some top-ranked ETFs that investors might wish to bet on:
iShares S&P 500 Value ETF IVE
Value investing is looking to be more appealing. Value stocks seek to capitalize on the market inefficiencies. They are less exposed to the trending markets and their dividend payouts offer a shield against the market turbulence.
iShares S&P 500 Value ETF carries a Zacks Rank #1 (Strong Buy), with a Medium-risk outlook.
Invesco KBW Bank ETF KBWB
The shift toward a tighter monetary policy will push yields higher, thereby helping the financial sector. This is because the rising rates will help boost profits for banks, insurance companies, discount brokerage firms and asset managers. The steepening of the yield curve (the difference between short and long-term interest rates) is likely to support banks’ net interest margins.
Invesco KBW Bank ETF currently carries a Zacks ETF Rank #2 (Buy), with a High-risk outlook(read: Grab Banking ETFs Now to Reap Gains From Hawkish Fed).
SPDR S&P Retail ETF XRT
High levels of consumer spending and improving employment conditions kept the retail sector buzzing with opportunities.
SPDR S&P Retail ETF currently carries a Zacks ETF Rank #1, with a Medium-risk outlook (read: 6 Sector ETFs That Show Promise After Jobs Data).
iShares Global Clean Energy ETF ICLN
Expanding new solar and wind capacities will make up most of the rise in renewable generation. Moreover, technological advancements, increasing investments, growing government initiatives and rising global awareness about clean energy are buoying demand for renewable energy.
iShares Global Clean Energy ETF currently carries a Zacks ETF Rank #2, with a Medium-risk outlook(read: Alternative Energy ETFs Shine as Oil Prices Rally Amid War).
VanEck Semiconductor ETF SMH
The growing adoption of cloud computing and the ongoing infusion of AI, machine learning and IoT are expected to create solid opportunities in 2022. Moreover, the revolutionary 5G platform is expected to act as a major catalyst for semiconductor revenues in the mobile phone market.
VanEck Semiconductor ETF currently carries a Zacks ETF Rank #1, with a High-risk outlook (read: Nvidia ETFs to Tap on Upbeat Q4 Earnings).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P Retail ETF (XRT): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
iShares Global Clean Energy ETF (ICLN): ETF Research Reports
Invesco KBW Bank ETF (KBWB): ETF Research Reports
iShares S&P 500 Value ETF (IVE): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
