Investors looking for exposure to exchange-traded funds (ETFs) might find it difficult to choose the right ones, given the vast universe of ETFs across different sectors and themes.
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TipRanks’ ETF AI Analyst enables investors to identify attractive ETFs. Below are three ETFs that have secured an Outperform rating from TipRanks’ AI Analyst and have at least 10% upside.
With the help of TipRanks’ ETF Comparison Tool, here’s how the three funds compare.
Fidelity Enhanced U.S. All-Cap Equity ETF (FEAC) — The FEAC ETF has a diversified equity strategy with an all-cap orientation. This ETF is suitable for investors seeking a broad-based approach, as it offers exposure to a diverse range of U.S. stocks, spanning large-, mid-, and small-cap companies. It has an expense ratio of 0.18%.
TipRanks’ AI Analyst has an Outperform rating on the FEAC ETF with a price target of $32, indicating an upside potential of 12.66%. The AI Analyst’s bullish stance is based on the solid performance of top holdings like tech giants Nvidia (NVDA) and Microsoft (MSFT), which are gaining from artificial intelligence (AI) tailwinds. However, holdings such as Tesla (TSLA) and Walmart (WMT) slightly moderate the overall rating of the AI Analyst due to their valuation concerns/mixed technical indicators.
Themes Cloud Computing ETF (CLOD) — The CLOD ETF tracks the performance of the Solactive Cloud Computing Index, which identifies the largest 50 companies by market capitalization that derive their revenues from digital security, e-commerce infrastructure, data infrastructure, data architecture, internet infrastructure, and data support. This ETF has a 0.35% expense ratio.
TipRanks’ AI Analyst has assigned an Outperform rating to the CLOD ETF with a price target of $39, implying about 15.69% upside potential. The AI Analyst’s rating is based on solid contributions from holdings like Microsoft and Alphabet (GOOGL), which are leaders in cloud and AI innovation. However, the ETF’s overall rating is slightly affected by holdings such as CrowdStrike (CRWD) and Intuit (INTU), due to valuation concerns and mixed technical indicators associated with these stocks.
First Trust Dow Jones Internet Index Fund (FDN) — The FDN ETF tracks the performance of the Dow Jones Internet Composite Index, which represents the largest and most actively traded U.S. stocks in the internet industry. It is suitable for investors seeking exposure to stocks across a range of internet-driven activities, including e-commerce, online services, social media, and cloud computing. The FDN ETF has an expense ratio of 0.49%.
TipRanks’ AI Analyst has an Outperform rating on the FDN ETF with a price target of $308, indicating 13.85% upside potential. The AI Analyst’s rating is based on the strength of top holdings like Amazon (AMZN) and Alphabet. However, weakness in stocks like Booking Holdings (BKNG), with leverage issues and bearish technical signals, slightly weighs on FDN’s rating.