Exchange-traded funds (ETFs) still offer investors a key route to achieve capital appreciation amid macroeconomic jitters surrounding the ongoing conflict in the Middle East.
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This article highlights three ETFs rated as Outperform by TipRanks’ AI analyst that investors can consider adding to their portfolios. The funds, which carry significant upside potential, include:
- Vanguard Information Technology ETF (VGT)
- Invesco NASDAQ 100 ETF (QQQM)
- iShares Core S&P Total U.S. Stock Market ETF (ITOT).
Each of these ETFs is projected to deliver a return of at least 20%. The snapshot below highlights what makes each fund stand out from the crowd.
- Vanguard Information Technology ETF (VGT)– The ETF provides investors with exposure to the U.S. technology industry, targeting companies focused on high-growth business areas such as artificial intelligence and cloud computing. However, the fund’s heavy tilt toward the tech sector also means it becomes vulnerable when macroeconomic shocks hit the sector. The ETF AI analyst currently has an $826 price target on VGT, suggesting about 21% growth potential. The fund’s strength comes from the contributions of key portfolio holdings such as Apple (AAPL) and Microsoft (MSFT).
- Invesco NASDAQ 100 ETF (QQQM) — This fund tracks the Nasdaq 100 index, meaning that it is tailored as a way for investors to tap into the growth potential of the 100 largest non-financial companies listed on the Nasdaq exchange. The ETF AI analyst currently has a $282 price target on QQQM, suggesting about 21% upside. The fund’s current Outperform rating largely reflects the strong performance of key holdings such as Apple, Microsoft, and Alphabet (GOOGL).
- iShares Core S&P Total U.S. Stock Market ETF (ITOT) — As the name suggests, the goal of this ETF is to provide investors with exposure to the entire U.S. stock market, from emerging companies to industry heavyweights. The ETF AI analyst currently has a price target of $168 on ITOT, indicating about 20% upside. The fund’s current Outperform rating is thanks to portfolio leaders Apple, Microsoft, and Alphabet.