ETFs provide a cost-effective way to diversify a portfolio due to their low expense ratios compared to individual stocks. Further, the lower investment requirements make them attractive to budget-conscious investors. By leveraging the TipRanks ETF Screener to scan for ETFs with more than 10% upside potential in the next 12 months, we have shortlisted two such funds: SPGP and VOT.
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Let’s take a deeper look at these two ETFs.
Invesco S&P 500 GARP ETF (SPGP)
The SPGP ETF tracks an index of S&P 500 stocks with the highest growth, quality, and value composite scores. The ETF has $4.9 billion in assets under management (AUM), with the top 10 holdings contributing 20.18% of the portfolio. Importantly, it has a low expense ratio of 0.34%. The SPGP ETF has returned 12.5% in the past six months.
Overall, the SPGP ETF has a Moderate Buy consensus rating. Of the 75 stocks held, 63 have Buys, 11 have a Hold, and one has a Sell rating. The analysts’ average price target on the SPGP ETF of $114.73 implies a 10.77% upside potential from the current levels.
Vanguard Mid-Cap Growth ETF (VOT)
The ETF seeks to track the performance of the CRSP U.S. Mid Cap Growth Index, which measures the investment return of mid-capitalization growth stocks. It has $13.13 billion in AUM, with the top 10 holdings contributing 16.02% of the portfolio. Meanwhile, the expense ratio of 0.07% is encouraging. Interestingly, the VOT ETF has generated a return of 16.16% over the past six months.
On TipRanks, VHT has a Strong Buy consensus rating. This is based on the consensus rating of each stock held in the portfolio. Of the 156 stocks held, 131 have Buys, and 25 have a Hold rating. The analysts’ average price target on the VOT ETF of $259.23 implies a 12.27% upside potential from the current levels.
Concluding Thoughts
ETFs are a low-cost, diversified, and transparent way to participate in the market. Investors looking for potential ETF recommendations could consider SPGP and VOT due to the upside potential expected by analysts.