3 Best ETFs to Invest In, According to AI Analyst, 04/27/2026

This article highlights three ETFs rated by TipRanks’ AI analyst as Outperform and which carry at least 10% upside potential.

• Energy Select Sector SPDR Fund (XLE)
• Vanguard Health Care ETF (VHT)
• iShares China Large-Cap ETF (FXI)

Exchange-traded funds (ETFs) offer investors a strong vehicle to seek capital appreciation in all market conditions. The snapshot below highlights what makes each fund stand out from the crowd.

1. Energy Select Sector SPDR Fund (XLE) — XLE provides investors with access to the leading U.S. energy companies by tracking the S&P Energy Select Sector Index. Higher oil prices due to the conflict in the Middle East are drawing renewed attention to this ETF. The ETF AI analyst currently has a $69 price target on XLE, suggesting over 21% growth potential. The fund’s strength comes from the contributions of key portfolio holdings such as ExxonMobil (XOM) and Chevron (CVX).
2. Vanguard Health Care ETF (VHT) — VHT is aimed at investors seeking exposure to the U.S. healthcare industry. The fund tracks a wide variety of industry participants, from drugmakers, biotech firms, and medical device establishments to healthcare services providers. The ETF AI analyst currently has a $306 price target on VHT, suggesting about 13% upside. The fund’s current Outperform rating largely reflects the strong performance of key holdings such as Eli Lilly (LLY), Johnson & Johnson (JNJ), Merck (MRK), and Gilead (GILD).
3. iShares China Large-Cap ETF (FXI) — FXI tracks the FTSE China 50 Index in a bid to capture gains from the 50 largest Chinese companies, mainly those trading on the Hong Kong Stock Exchange for investors. The ETF AI analyst currently has a price target of $41 on FXI, indicating approximately 13% upside. The fund’s current Outperform rating is thanks to portfolio leaders China Construction Bank (CICHY) and the Bank of China (BACHY) and key contributors such as Tencent (TCHEY) and Netease (NTES).