An exchange-traded fund (ETF) is a strong vehicle to tap into market growth opportunities despite global economic uncertainty triggered by the ongoing conflict in the Middle East. This article highlights three ETFs rated by TipRanks’ AI analyst as Outperform and which carry upside potential. The funds are:
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Forget margin or options. Here's how the pros trade NVDA- Vanguard Value ETF (VTV)
- Invesco S&P 500 Equal Weight ETF (RSP)
- J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ)
The snapshot below highlights what makes each fund stand out from the crowd.
- Vanguard Value ETF (VTV) — VTV tracks the CRSP U.S. Large Value Index and seeks to provide investors with exposure to value stocks, that is, companies whose shares are trading below their actual worth. The fund has a presence in sectors such as financials, healthcare, and industrials. The ETF AI analyst currently has a $219 price target on VTV, suggesting over 8% growth potential. The fund’s strength comes from the contributions of key portfolio holdings such as Johnson & Johnson (JNJ), Walmart (WMT), Exxon Mobil (XOM), and Micron (MU).
- Invesco S&P 500 Equal Weight ETF (RSP) — RSP targets the 500 largest companies in the U.S. but gives equal weight to them to provide investors with a broader exposure to the overall U.S. stock market. It achieves this by tracking the S&P 500 Equal Weighted Index. The ETF AI analyst currently has a $213 price target on RSP, suggesting about 7% upside. The fund’s current Outperform rating largely reflects the strong performance of key holdings such as Diamondback Energy (FANG), ConocoPhillips (COP), and Devon Energy (DVN).
- J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ) — JEPQ primarily invests in established U.S. companies, leaning heavily on those in the tech and communication services sectors. The fund complements its growth exposure to these companies with an options strategy for extra income. The ETF AI analyst currently has a price target of $62 on JEPQ, indicating over 6% upside. The fund’s current Outperform rating is thanks to portfolio leaders Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), and Nvidia (NVDA).