Best ETFs to Invest In, According to AI Analyst, 4/10/2026

Investors continue to grapple with a volatile stock market due to the ongoing U.S.-Iran conflict and elevated oil prices amid tensions in the Middle East. In this uncertain backdrop, lower-risk options like exchange-traded funds (ETFs) could be a good investment choice. Notably, ETFs reduce overall risk by diversifying across a range of stocks.

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TipRanks’ ETF AI Analyst helps investors select attractive ETFs that can generate solid returns. Here, we will look at three Outperform-rated ETFs with the potential to generate solid returns: First Trust NASDAQ Technology Dividend Index Fund (TDIV), First Trust Expanded Technology ETF (XPND), and Vanguard High Dividend Yield Index ETF (VYM).

Using TipRanks’ Stock Comparison Tool, let’s look at a few metrics of these ETFs.

1. First Trust NASDAQ Technology Dividend Index Fund (TDIV) — The TDIV ETF tracks the Nasdaq Technology Dividend Index and offers investors a unique combination of income and growth potential within the technology sector. The ETF AI Analyst has a price target of $106 on the TDIV ETF, indicating about 9.7% upside potential. Also, it offers a dividend yield of 1.45%. The Outperform rating on TDIV is backed by strong holdings such as IBM (IBM), Microsoft (MSFT), Broadcom (AVGO), and TSMC (TSM).
2. First Trust Expanded Technology ETF (XPND) — The XPND ETF seeks to provide long-term capital appreciation by providing exposure to information technology companies or financial and communication services companies whose operations are principally derived from and/or dependent upon technology (expanded technology companies). The ETF AI Analyst has a price target of $38 on the XPND ETF, implying about 9.5% upside potential. The top three holdings of the XPND ETF are Broadcom, Lam Research (LRCX), and Applied Materials (AMAT).
3. Vanguard High Dividend Yield Index ETF (VYM) — The VYM ETF tracks the FTSE High Dividend Yield Index, which provides exposure to stocks of companies characterized by high dividend yields. The ETF AI Analyst has a price target of $164 on the VYM ETF, implying about 8% upside potential. Additionally, the VYM ETF offers a dividend yield of over 2.3%. The Outperform rating on the VYM ETF is based on companies with strong financial performance, such as Johnson & Johnson (JNJ), Walmart (WMT), Broadcom, Exxon Mobil (XOM), and Caterpillar (CAT).