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 8 ETFs made it to the list of buy on the dip prospects this month. The market closed high as the technology sector rebounded while the employment report still remained disappointing.
- Several financial ETFs like SPDR S&P Regional Banking ETF (KRE ), Invesco KBW Bank ETF (KBWB ), and SPDR S&P Bank ETF (KBE ) topped the buy on the dip prospects’ list on the back of falling bond yields and broader market sell-offs.
- Many bond ETFs such as Schwab U.S. TIPS ETF (SCHP ), iShares TIPS Bond ETF (TIP ), and Vanguard Total International Bond ETF (BNDX ) also made it to the list of buy on the dip prospects amid rising inflation and slow growth. Compare and contrast the two financial ETFs using our ETF Comparison tool.
To compare this month’s list with the one published on August 11, click here.
ETFs to Buy on the Dip
| Ticker | Name | Price | 1-YearReturn | Leverage |
|---|---|---|---|---|
| (KRE ) | SPDR S&P Regional Banking ETF | $65.38 | 67.73% | Long |
| (KBWB ) | Invesco KBW Bank ETF | $65.68 | 62.90% | Long |
| (KBE ) | SPDR S&P Bank ETF | $51.78 | 60.61% | Long |
| (SCHP ) | Schwab U.S. TIPS ETF | $63.07 | 1.94% | Long |
| (TIP ) | iShares TIPS Bond ETF | $128.80 | 1.34% | Long |
| (VTEB ) | Vanguard Tax-Exempt Bond ETF | $55.18 | 1.32% | Long |
| (SPIP) | SPDR Portfolio TIPS ETF | $31.36 | 1.13% | Long |
| (BNDX ) | Vanguard Total International Bond ETF | $57.72 | -0.52% | Long |
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
