Exchange-traded funds (ETFs) remain an attractive investment vehicle for investors seeking solid returns with lesser risk, as they offer diversification across several stocks, sectors, or asset classes. However, deciding which one to buy can be challenging given the vast universe of ETFs. That’s where TipRanks’ ETF AI Analyst comes in!
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Below are three ETFs that TipRanks’ AI Analyst is bullish on. These ETFs have an Outperform rating and at least 10% upside potential. With the help of TipRanks’ ETF Comparison Tool, here’s how the three funds compare.
iShares Russell 1000 Growth ETF (IWF) — The IWF ETF tracks the performance of the Russell 1000 Growth Index, offering exposure to a diverse array of high-performing companies with strong growth prospects. This ETF has an expense ratio of 0.18% and $127.3 billion in assets under management (AUM).
The ETF AI Analyst has an Outperform rating on IWF with a price target of $536, indicating an upside potential of about 12%. The bullish stance on the IWF ETF is based on its top holdings, such as Nvidia (NVDA) and Microsoft (MSFT). Notably, the AI Analyst highlighted Nvidia’s solid revenue growth and dominance in the AI infrastructure market and Microsoft’s strength in its cloud business and AI services, along with strategic investments. However, valuation risks/leverage concerns related to stocks like Tesla (TSLA) and Eli Lilly (LLY) temper the AI Analyst’s overall score for the IWF ETF.
Vanguard Value ETF (VTV) — The VTV ETF tracks the performance of the CRSP U.S. Large Cap Value Index. It comprises some of the most well-established and financially strong companies. Notably, the VTV ETF includes stocks trading below their intrinsic value, as reflected in their lower price-to-earnings or price-to-book multiples. It has an expense ratio of 0.04% and nearly $149 billion in AUM.
The ETF AI Analyst has assigned a price target of $207 (12.3% upside potential) to the VTV ETF with an Outperform rating. The bullish stance on the VTV ETF is based on solid contributions from key holdings like energy giant Exxon Mobil (XOM) and healthcare company Johnson & Johnson (JNJ). That said, weaker holdings such as Bank of America (BAC) and AbbVie (ABBV), which face headwinds like cash flow management and financial leverage risks, may have slightly tempered the AI Analyst’s overall score.
Schwab U.S. Dividend Equity ETF (SCHD) — The SCHD ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index, offering exposure to a diverse portfolio of attractive, income-generating equities. It has an expense ratio of 0.06% and over $68 billion in AUM.
The TipRanks’ ETF AI Analyst has an Outperform rating on SCHD ETF with a price target of $30, implying 13.5% upside potential. The bullish rating of AI Analyst is based on SCHD’s robust portfolio of dividend-paying stocks, with networking giant Cisco (CSCO) and snacks and beverage company PepsiCo (PEP) being the major contributors to the overall rating. That said, holdings like AbbVie and Altria Group (MO) have modestly weighed on the AI Analyst’s overall rating due to concerns over high leverage and declining growth in key areas.