Exchange-traded funds (ETFs) provide an attractive option to gain exposure to themes such as artificial intelligence (AI), growth stocks, dividends, and fixed income. They offer diversification, flexibility, and convenient access to a variety of market opportunities.
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However, the vast ETF market can make selection challenging for investors. In this regard, TipRanks’ ETF AI Analyst helps pick funds with attractive upside potential. Here, we will look at three such ETFs rated Outperform by the AI Analyst and having attractive upside, according to the ETF AI Analyst: iShares Russell 1000 Value ETF (IWD), Vanguard Growth ETF (VUG), and Invesco QQQ Trust (QQQ).
Using TipRanks’ ETF Comparison Tool, let’s look at a few metrics of these ETFs.
- iShares Russell 1000 Value ETF (IWD) — The IWD ETF tracks the Russell 1000 Value Index and provides exposure to the U.S. large- and mid-cap stocks that are undervalued compared to peers. It is suitable for investors seeking exposure to companies that exhibit value characteristics. The ETF AI Analyst has a price target of $255 on the IWD ETF, implying about 10% upside potential. It also offers a dividend yield of about 1.54%. Berkshire Hathaway (BRK.B), JPMorgan Chase (JPM), and Alphabet (GOOGL) are among the top holdings of the IWD ETF.
- Vanguard Growth ETF (VUG) — The VUG ETF tracks the CRSP US Large Cap Growth Index and provides exposure to large-cap growth stocks. It is suitable for investors who want to capitalize on the potential of leading companies with strong growth trajectories. The ETF AI Analyst has a price target of $98 on the VUG ETF, implying about 13% upside potential. Plus, VUG offers a dividend yield of 1.83%. The AI Analyst’s bullish stance is based on strong holdings like Apple (AAPL), Microsoft (MSFT), and Alphabet.
- Invesco QQQ Trust (QQQ) — The QQQ ETF tracks the Nasdaq 100 Index (NDX) and provides exposure to the 100 largest non-financial companies listed on the Nasdaq. It helps investors gain access to the most influential and rapidly growing companies. The ETF AI Analyst has a price target of $781 on the QQQ ETF, indicating about 10% upside potential. The AI Analyst’s Outperform rating on QQQ is supported by its exposure to prominent tech giants such as Microsoft, Apple, and Alphabet.