This article highlights three ETFs rated by TipRanks’ AI analyst as Outperform and carrying at least 8% upside potential.
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- Financial Select Sector SPDR Fund (XLF)
- Pacer Trendpilot U.S. Large Cap ETF (PTLC)
- KraneShares CSI China Internet ETF (KWEB)
Exchange-traded funds (ETFs) provide investors with a robust opportunity to pursue capital growth through all types of market cycles. The snapshot below highlights what makes each fund stand out from the crowd.
- Financial Select Sector SPDR Fund (XLF) — XLF focuses on the financial sector, offering investors exposure to companies such as investment banks, insurance companies, and payment processors. However, the single-sector focus means the fund is vulnerable to trends from the banking and finance industry. The ETF AI analyst currently has a $57 price target on XLF, suggesting over 10% growth potential. The fund’s strength comes from the contributions of key portfolio holdings such as JPMorgan (JPM), Wells Fargo (WFC), and American Express (AXP).
- Pacer Trendpilot U.S. Large Cap ETF (PTLC) — PTLC is a fund that adopts a rules-based approach, which means it commits to its portfolio stocks during periods of positive market trends but goes on the defensive when the market weakens. Yet, the fund remains heavily reliant on the American tech sector. The ETF AI analyst currently has a $61 price target on PTLC, suggesting about 9% upside. The fund’s current Outperform rating largely reflects the strong performance of key holdings such as Microsoft (MSFT), Apple (AAPL), and Alphabet (GOOGL).
- KraneShares CSI China Internet ETF (KWEB) — KWEB tracks the CSI Overseas China Internet Index with the goal of providing investors with the opportunity to invest in leading Chinese internet companies across areas such as online entertainment, cloud services, e-commerce, and social media. The ETF AI analyst currently has a price target of $31 on KWEB, indicating approximately 8% upside. The fund’s current Outperform rating is thanks to portfolio leaders such as Tencent (TCHEY) and NetEase (NTES).