Exchange-traded funds (ETFs) remain an attractive investment vehicle for investors seeking attractive returns with lesser risk, as they offer diversification across several stocks, sectors, or asset classes. However, deciding which ETF to buy can be a challenging task. 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 offer at least 10% upside. With the help of TipRanks’ ETF Comparison Tool, here’s how the three funds compare.
Vanguard Total Stock Market ETF (VTI) — The VTI ETF tracks the performance of the CRSP U.S. Total Market Index. It comprises a diverse array of large-, mid-, and small-cap stocks across growth and value styles. The VTI ETF’s low expense ratio of 0.03% is another appealing aspect.
TipRanks’ ETF AI Analyst has an Outperform rating on the VTI ETF with a price target of $370, indicating 11.1% upside potential. The AI Analyst’s bullish stance is based on solid contributions from holdings such as tech giants Microsoft (MSFT) and Nvidia (NVDA), which are dominant AI players with strong financials. However, weaker holdings like Berkshire Hathaway (BRK.A) (BRK.B), with mixed technical indicators and slower revenue growth, slightly weigh on the fund’s overall rating.
Schwab U.S. Large-Cap ETF (SCHX) — The SCHX ETF tracks the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index. It is focused on well-established companies that are leaders in their industries. The SCHX ETF’s expense ratio is also 0.03%.
The TipRanks’ ETF AI Analyst has an Outperform rating on the SCHX ETF with a price target of $30, implying 12.1% upside potential. The AI Analyst’s rating is based on robust contributions by top holdings like Nvidia and Microsoft. As with the VTI ETF, weaker holdings such as Berkshire Hathaway have slightly tempered the AI Analyst’s overall score on the SCHX ETF.
Invesco QQQ ETF (QQQ) — The QQQ ETF tracks the Nasdaq-100 Index (NDX). It offers exposure to a select group of the largest non-financial companies listed on the Nasdaq Stock Market. The QQQ ETF has an expense ratio of 0.20%.
The TipRanks’ ETF AI Analyst has a price target of $692 (11% upside potential) on the QQQ ETF and an Outperform rating. The bullish stance on the QQQ ETF is supported by its top holdings, including Microsoft and Nvidia. However, holdings like Tesla (TSLA) and Amazon (AMZN) have a modest adverse impact on QQQ’s overall rating due to valuation concerns and challenges in their respective markets.