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Buy on the Dip Prospects: December 4 Edition

Below is a look at ETFs that currently offer attractive buying opportunities.

The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively.

Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term ‘buy on the dip’ opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.

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Only 14 ETFs made it to the list of buy on the dip prospects this month. The three major U.S. indices advanced during this month. U.S. stocks rose and strong economic data supported the gains. Retail shares outperformed and consumer discretionary became the best performing sector in the S&P 500 ahead of Black Friday. Several gold ETFs like VanEck Vectors Gold Miners ETF (GDX B+), Direxion Daily Gold Miners Bull 3X Shares (NUGT C+), iShares Gold Trust (IAU A) and SPDR Gold Shares (GLD A-) featured on the list of buy on the dip prospects as gold price declined by ~2% during the month. Prices of the yellow metal have come under pressure as the Treasury yields have risen, the equity market run continues and there is a low probability of the Federal Reserve tightening the monetary policy. iShares Silver Trust (SLV C+) which seeks to reflect the performance of the price of silver, also made it to the list of buy on the dip prospects as silver price also declined by more than 4% during the month. Compare the performance of different precious metals by using ETFdb.com’s category iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB A-), Invesco Preferred ETF (PGX A) and iShares MSCI Emerging Markets ETF (EEM A-) also featured on the buy on the dip prospects’ list as investors turn risk-averse in the face of rising global uncertainties. China warned that it would retaliate in response to U.S. legislation backing anti-government protesters in Hong Kong. iShares MSCI Mexico ETF (EWW A) also made it to the list. Check out our emerging markets bonds ETFs by clicking here: https://etfdb.com/etfdb-category/emerging-markets-bonds/ VanEck Vectors Russia ETF (RSX B+) was one of the buy on the dip candidates as oil prices fell and the U.S. President signed a law backing protesters in Hong Kong which further escalated tensions with China.

To compare this month’s list with the one published on November 7, click here.

ETFs to Buy on the Dip

Ticker Name Price 1-YearReturn Leverage
(NUGT C+) Direxion Daily Gold Miners Bull 3X Shares $26.40 105.29% Triple-Long
(GDX B+) VanEck Vectors Gold Miners ETF $26.66 41.28% Long
(GDXJ B) VanEck Vectors Junior Gold Miners ETF $37.20 40.54% Long
(ASHR C+) Deutsche X-trackers Harvest CSI 300 China A-Shares ETF $28.13 22.41% Long
(RSX B+) VanEck Vectors Russia ETF $24.50 20.75% Long
(GLDM) SPDR Gold MiniShares Trust $14.51 19.52% Long
(IAU A) iShares Gold Trust $13.91 19.50% Long
(SLV C+) iShares Silver Trust $15.84 19.19% Long
(GLD A-) SPDR Gold Shares $137.01 19.19% Long
(EWW A) iShares MSCI Mexico ETF $43.77 14.01% Long
(EMB A-) iShares J.P. Morgan USD Emerging Markets Bond ETF $112.40 9.81% Long
(PGX A) Invesco Preferred ETF $14.80 8.03% Long
(EEM A-) iShares MSCI Emerging Markets ETF $43.22 6.69% Long
(EWY C+) iShares MSCI South Korea ETF $59.82 -1.22% Long

Please note that this list is updated on a monthly basis.

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Disclosure: No positions at time of writing.

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