A near-term end to the ongoing U.S.-Israel-Iran war does not appear to be in sight, even as investors remain on edge. Exchange-traded funds (ETFs) remain a key way to seek growth in the market.
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Forget margin or options. Here's how the pros trade MPWRTo this end, this article highlights three ETFs rated by TipRanks’ AI analyst as Outperform. These funds, which also have significant upside, include:
- Themes U.S. R&D Champions ETF (USRD)
- Abacus FCF Small-Cap Leaders ETF (ABLS)
- LG QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI)
The snapshot below highlights what makes each fund stand out from the crowd.
- Themes U.S. R&D Champions ETF (USRD) — This fund tracks an index that provides investors with exposure to U.S. companies that give utmost priority to research and development. USRD invests in companies of various sizes, with particular emphasis on technology and healthcare. The ETF AI analyst currently has a $36 price target on USRD, suggesting over 14% growth potential. The fund’s strength comes from the contributions of key portfolio holdings such as Vertiv (VRT), Keysight Technologies (KEYS), Cisco (CSCO), Broadcom (AVGO), Applied Materials (AMAT), and Monolithic Power (MPWR).
- Abacus FCF Small-Cap Leaders ETF (ABLS) — ABLS tracks an index with the same name with the goal of helping investors earn capital appreciation from smaller U.S. companies with strong profits and healthy cash flow. The fund achieves this by investing across sectors, including technology, healthcare, and industrials. The ETF AI analyst currently has a $20.50 price target on ABLS, suggesting about 8% upside. The fund’s current Outperform rating largely reflects the strong performance of key holdings such as construction and engineering holding company Argan (AGX), specialty vehicle manufacturer LCI Industries (LCII), and commercial-stage pharma company Harmony Biosciences Holdings (HRMY).
- LG QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) — As the name of the ETF suggests, this fund uses artificial intelligence to select a mix of large U.S. companies to help investors tap into the growth of the U.S. stock market. This approach is different from the index-tracking methodology of most ETFs. Nonetheless, the fund gives considerable attention to the technology sector. The ETF AI analyst currently has a price target of $43 on LQAI, indicating about 8% upside. The fund’s current Outperform rating is thanks to portfolio leaders Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), and Micron (MU).