Best ETFs to Invest In, According to AI Analyst, 5/7/2026

Exchange-traded funds (ETFs) have become a preferred investment choice for investors seeking diversification, flexibility, and cost-efficient exposure to a wide range of assets. By spreading investments across multiple stocks, bonds, sectors, or themes, ETFs help reduce the risks associated with buying individual stocks.

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However, the expanding universe of ETFs can make it challenging to identify the right funds. In this regard, TipRanks’ ETF AI Analyst helps select ETFs that can generate strong returns through capital appreciation, dividends, or both. Here, we will look at three such ETFs rated Outperform by the AI Analyst that have the potential to generate attractive returns: FT Vest Dow Jones Internet & Target Income ETF (FDND), NEOS S&P 500 High Income ETF (SPYI), and Schwab US Dividend Equity ETF (SCHD).

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

1. FT Vest Dow Jones Internet & Target Income ETF (FDND) — The FDND ETF aims to capture the growth potential of the internet sector while generating income through strategic dividend opportunities. It seeks to achieve its objective by investing in the stocks in the Dow Jones Internet Composite Index and writing (selling) call options on the Nasdaq-100 Index (NDX), or ETFs that track the Nasdaq-100 Index. It offers a yield of more than 8%. The ETF AI Analyst has a price target of $26 on the FDND ETF, implying 21% upside potential (as of writing). The FDND earns a bullish outlook based on holdings like Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META).
2. NEOS S&P 500 High Income ETF (SPYI) — The SPYI ETF seeks to generate high monthly income by investing in the stocks in the S&P 500 Index (SPX) and implementing a data-driven call option strategy. The ETF AI Analyst has a price target of $56 on the SPYI ETF, indicating 5.4% upside potential. Plus, it offers a high dividend yield of 11.73%. The AI Analyst’s Outperform rating on SPYI is supported by exposure to prominent tech holdings such as Apple (AAPL), Microsoft (MSFT), and Alphabet.
3. Schwab US Dividend Equity ETF (SCHD) — The SCHD ETF tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to income-generating equities. The ETF AI Analyst has a price target of $35 on the SCHD ETF, implying about 10.5% upside potential. Also, SCHD offers a dividend yield of 3.33%. The AI Analyst’s Outperform rating on the SCHD ETF is based on dividend-paying companies like Merck (MRK), Qualcomm (QCOM), and Texas Instruments (TXN).