In the July policy meeting, the Federal Reserve raised its benchmark interest rate by another 0.75 percentage point to tame the multi-decade high inflation. Moreover, the U.S. economy contracted for two consecutive quarters, with GDP declining 0.9% in the second quarter, fueling recession concerns.
Mayor Eric Adams said that the U.S. has entered into a recession and “Wall Street is collapsing,” contrary to President Biden’s claims that the nation is doing all right. However, better-than-expected earnings reports from many tech giants have kept investors’ sentiment positive lately. The tech-heavy Nasdaq Composite added 1.9% in the last trading session to close its best month since 2020.
So, we think it could be wise to invest in tech-focused ETFs ProShares S&P Technology Dividend Aristocrats ETF (TDV) and Innovator Nasdaq-100 Power Buffer ETF – October (NOCT) to capitalize on the current market trends.
ProShares S&P Technology Dividend Aristocrats ETF (TDV)
Non-diversified fund TDV seeks investment results that track the performance of the S&P Technology Dividend Aristocrats Index. The index targets companies from the U.S. technology sector.
With $111.30 million in assets under management (AUM), TDV’s top holdings include Avnet, Inc. (AVT) with a 3.06% weighting; Littelfuse, Inc. (LFUS) at 2.98%; and Badger Meter, Inc. (BMI) at 2.75%. Over the past month, the ETF’s fund flows came in at $1.11 million. In addition, its 0.46% expense ratio compares favorably to the 0.55% category average.
Closing the last trading session at $60.01, the ETF is currently trading below its 52-week high of $67.42. The fund has gained 11.5% over the past month.
TDV’s POWR Ratings reflect this promising outlook. The ETF has an overall rating of B, which equates to Buy in our proprietary rating system.
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TDV has an A grade for Peer and a B for Buy & Hold and Trade. Of the 118 ETFs in the Technology Equities ETFs group, TDV is ranked #3.
Innovator Nasdaq-100 Power Buffer ETF – October (NOCT)
NOCT seeks to provide returns that match those of the NASDAQ-100 Price Index while providing a buffer against the first 15% of NASDAQ-100 Price Index losses over a certain holding period. The actively-managed non-diversified fund invests at least 80% of its net assets in FLexible Exchange Options.
The fund has approximately $58.20 million AUM. Also…
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