3 Best ETFs to Invest In, According to AI Analyst, 01/27/2026

Many investors still find exchange-traded funds a complex landscape of products and approaches, making it hard to allocate capital with conviction. To provide clearer guidance, TipRanks’ AI analyst team has singled out three ETFs that currently carry Outperform ratings: Brown Advisory Flexible Equity ETF (BAFE), Aptus Collared Income Opportunity ETF (ACIO), and Fidelity Low Volatility Factor ETF (FDLO).

Each of these ETFs carries a projected return of at least 10%. The accompanying snapshot and chart highlight the distinctive characteristics of each fund.

1. Brown Advisory Flexible Equity ETF (BAFE) — This is a flexible fund that doesn’t track a single index but makes its selection from small-, mid- and large-cap companies, especially those listed in the U.S. The goal is to provide investors exposure to the overall stock market. The ETF AI analyst currently has a $31 price target on BAFE, suggesting 12.48% growth potential. The funds’ solid rating comes from the contributions of portfolio holdings such as Microsoft (MSFT) and Alphabet (GOOGL).
2. Aptus Collared Income Opportunity ETF (ACIO) — The fund is so-called because it uses the options “collar strategy” to protect its portfolio against losses. In practice, the fund deploys options to set a floor and a ceiling on share prices, thereby limiting potential losses. The ETF AI analyst currently has a $49 price target on ACIO, suggesting 11.21% upside. The fund relies on tech majors such as Microsoft, Alphabet, Apple (AAPL), and Nvidia (NVDA).
3. Fidelity Low Volatility Factor ETF (FDLO) — As the name suggests, this ETF is designed to have lower volatility or sudden price movements compared to the broader market. The fund achieves this by focusing on American companies with large market capitalizations. The ETF AI analyst currently has a price target of $75 on FDLO, implying 10.04% upside from current trading levels. The fund’s current Outperform rating is thanks to its heavy exposure to companies such as Alphabet, Microsoft, and Apple.