Best ETFs to Invest In, According to AI Analyst, 4/29/2026

Exchange-traded funds (ETFs) provide investors exposure to the broader market, sectors, or themes, with the aim of enhancing overall returns through capital appreciation, dividends, or both. In this regard, TipRanks’ ETF AI Analyst helps pick attractive ETFs that can generate solid returns.

Here, we will look at three such ETFs rated Outperform by the AI Analyst and having the potential to generate strong returns: Fidelity MSCI Energy Index ETF (FENY), Vanguard Consumer Staples ETF (VDC), and SPDR S&P Dividend ETF (SDY).

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

1. Fidelity MSCI Energy Index ETF (FENY) — The FENY ETF tracks the MSCI USA IMI Energy 25/50 Index and offers exposure to the stocks in the U.S. energy sector. The ETF AI Analyst has a price target of $38 on the FENY ETF, implying about 15% upside potential. Additionally, the FENY ETF offers a dividend yield of 2.4%. The AI Analyst’s Outperform rating on FENY is based on energy giants such as Exxon Mobil (XOM) and Chevron (CVX).
2. SPDR S&P Dividend ETF (SDY) — The SDY ETF tracks the S&P High Yield Dividend Aristocrats Index and provides exposure to companies that have consistently increased their dividends for at least 20 consecutive years. The ETF AI Analyst has a price target of $162 on the SDY ETF, indicating about 10% upside potential. It offers a dividend yield of about 2.5%. The AI Analyst’s Outperform rating on SDY is supported by holdings in companies such as Verizon (VZ) and PepsiCo (PEP).
3. Vanguard Consumer Staples ETF (VDC) — The VDC ETF tracks the MSCI US IMI 25/50 Consumer Staples Index and offers exposure to companies that have a presence in essential goods and services that remain in demand regardless of economic cycles. VDC comprises a portfolio of household names across food and beverage, personal care, tobacco, and other consumer staples areas. The ETF AI Analyst has a price target of $245 on the VDC ETF, implying 7.4% upside potential. VDC offers a dividend yield of 2.1%. The AI Analyst’s bullish stance on the VDC ETF is based on consumer staple giants such as Walmart (WMT), Coca-Cola (KO), Costco (COST), and PepsiCo.