While last week was full of major corporate earnings and a Federal Reserve meeting, this week is no different with another flurry of corporate earnings. Cryptocurrencies are also surging, with Ethereum breaking through $4,000 over the weekend. This week in the markets comes after an extremely disappointing April Jobs report from the Labor Department, where employment came in at 266,000 versus over a million expected, casting doubt on any hikes in interest rates in the near future. Of course, they might be forced if inflation comes in too hot, but they seem to not be concerned despite several commodities, like lumber and oil, flashing warning signs. We’ve built a list of ETFs rated as Top Buys for this week. Hopefully, some of these picks can help you diversify your portfolio and potentially mitigate risks. Q.ai’s deep learning algorithms have identified several ETFs to look out for this week based on their fund flows over the last 90-days, 30-days, and 7-days.
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ARK Innovation ETF (ARKK)
The ARK Innovation ETF ARKK -5.2% is our first Top Buy this week. 2021 has not been a good time for Cathie Wood and her company’s ETFs, having significant drawdowns from all-time highs. This ARK ETF is Ark’s flagship holding, focusing on disruptive innovation technology in several different sectors, including DNA technologies, industrial innovation in energy, automation, and manufacturing, next-generation internet services and infrastructure, and financial services innovation. The ETF is Ark’s largest with $7,980,803,644.78 AUM. It has seen mixed fund flows, with a 90-day fund flow of $3,082,811,850.00, 30-day fund flow of -$1,148,016,550.00, and 1-week fund flow of -$410,317,550.00. As expected with an ARK ETF, this ETF has a very pricey net expense ratio of 0.75%.
Energy Select Sector SPDR Fund (XLE)
The Energy Select Sector SPDR Fund XLE 0.0% is our next Top Buy. This ETF aims to give investors broad exposure to S&P 500 energy stocks. As inflation expectations increased and oil demand flourished throughout the world as economies reopened, energy stocks have seen an extremely impressive run. This ETF carries an AUM of $9,721,956,813.60. The ETF has also seen some strong demand in recent months, with positive fund flows with a 90-day fund flow of $3,634,106,585.85, 30-day fund flow of $611,960,290.10, and 1-week fund flow of $283,266,812.60. With a net expense ratio of 0.13%, this ETF is fairly attractive as well.
iShares PHLX Semiconductor ETF (SOXX)
The next Top Buy ETF for this week is the iShares PHLX Semiconductor ETF SOXX -4.4%. This ETF aims to follow and track the overall performance of US-based companies involved in semiconductor production and equipment. There is still a massive semiconductor shortage with major car manufacturers even being forced to slow production as companies struggle to meet the surging semiconductor demand. This is definitely the type of ETF you want to keep your eyes on. The ETF runs with an AUM of $3,658,452,370.65. The ETF has seen mixed fund flows, with a 90-day fund flow of $937,029,555.00, 30-day fund flow of -$80,683,745.00, and 1-week fund flow of -$64,049,585.00. The iShares PHLX Semiconductor ETF also has a net expense ratio of 0.48%, which is on the pricier side.
iShares Silver Trust (SLV)
The iShares Silver Trust SLV -0.5% is our next Top Buy ETF. With a weakening USD and inflation expectations high, silver may be a strong candidate for your portfolio. Because the iShares Silver Trust aims to reflect the performance of the price of silver while providing a convenient and cost-effective way to invest in physical silver, it may be an excellent hedge. With $15,144,239,709.51 in AUM, the ETF has attracted many investors. Interestingly, its fund flows have been primarily negative, with a 90-day fund flow of -$2,910,290,145.00, 30-day fund flow of -$205,354,295.00, and 1-week fund flow of -$14,195,760.00. With a net expense ratio of 0.5%, it is not as cheap as other ETFs.
VanEck Vectors Gold Miners ETF (GDX)
Another precious metals ETF makes our top buys this week in the VanEck Vectors Gold Miners ETFs GDX -0.1%. If you’re looking for a levered way to play a higher gold move on the back of an inflationary environment and easy Federal Reserve policy, this ETF of gold miners may fit the bill. The ETF carries an AUM of $17,482,700,351.59. It has seen mixed fund flows recently, with a 90-day fund flow of -$695,556,310.50, a 30-day fund flows of $147,110,310.00, and a 1-week fund flow of $18,780,101.00. The ETF has a relatively pricey net expense ratio of 0.52%.
Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
Our next Top Buy for our weekly ETFs is a bond holding in the Vanguard Intermediate-Term Corporate Bond holding VCIT -0.1%. With markets at all-time highs, some may look to bonds to provide some protection in their portfolio, despite yields being extremely low vs their historical levels. This ETF is one of the largest we are covering today with an AUM of $39,125,280,550.40. It has seen positive fund flows lately, with a 90-day fund flow of $2,327,032,922.73, a 30-day fund flow of $1,724,563,009.88, and 1-week fund flow of $177,838,000.00. Its net expense ratio of 0.07% is extremely attractive.
iShares MSCI Emerging Markets ETF (EEM)
Another Top Buy this week in our ETFs is the iShares MSCI Emerging Markets ETF. With the US dollar dropping lately, and commodities surging, emerging markets are an interesting play to take advantage. The ETF has an AUM of $23,983,192,381.50, and has seen positive fund flows. The ETF has a 90-day fund flow of $2,183,755,860.00 and a 30-day fund flow of $145,713,330.00. Its net expense ratio of 0.69%, however, is quite expensive.
SPDR S&P Biotech ETF (XBI)
Another Top Buy this week in our ETFs is the SPDR S&P Biotech ETF. Biotech has been a massive winner lately, with many new drugs and vaccines coming to market amid a global pandemic, and will surely have some winners in the future. This is a great ETF to play the sector passively, and carries an AUM of $5,177,074,409.96, and has seen mostly positive fund flows. The ETF has a 90-day fund flow of $162,720,352.75, a 30-day fund flow of $461,915,925.03, and a 1-week fund flow of -$85,096,931.05. Its net expense ratio of 0.35% is attractive for the space.
iSharess iBoxx $ Investment Grade Corporate Bond ETF (LQD)
The final Top Buy ETF this week is another corporate bond holding in the iShares iBoxx $ Investment Grade Corporate Bond ETF LQD -0.5%. The ETF has lost some ground this year but has done pretty well over the last year. This ETF is our largest in terms of AUM highlighted this week with a total of $56,377,083,989.10. The ETF has also seen mixed fund flows with a 90-day fund flow of -$8,486,529,920.00, 30-day fund flow of $1,203,287,450.00, and 1-week fund flow of -$327,741,820.00. The ETF also has an attractive 0.15% net expense ratio.
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