{"id":3459,"date":"2025-01-30T17:59:55","date_gmt":"2025-01-30T17:59:55","guid":{"rendered":"http:\/\/blog.valuengine.com\/?p=3459"},"modified":"2025-01-30T18:03:57","modified_gmt":"2025-01-30T18:03:57","slug":"selected-etfs-to-watch-in-2025","status":"publish","type":"post","link":"http:\/\/blog.valuengine.com\/index.php\/selected-etfs-to-watch-in-2025\/","title":{"rendered":"Selected ETFs to Watch in 2025"},"content":{"rendered":"

Following on last week\u2019s top 10 list, this week\u2019s blog focuses on ETFs related to the stocks in the list. We begin with lots and lots of data in the form of several tables, and end with our written analysis. Skip to the end if you prefer to jump to the conclusions we make on all of this data. <\/span>Here is a review of the top stock list as it appeared last week in the “Top Ten ValuEngine Stocks to Watch” in 2025 posting. This is important due to its relevance in how we selected the top ETFs to watch in 2025.<\/span><\/p>\n

Top 10 Stock List for 2025<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Rank<\/b><\/td>\nTicker<\/b><\/td>\nCompany Name<\/b><\/td>\nMarket Cap ($Bil)<\/b><\/td>\nPrice<\/b><\/td>\nVE Rating<\/b><\/td>\nForecast Ranking<\/b><\/td>\nValuation Ranking<\/b><\/td>\n<\/tr>\n
1<\/span><\/td>\nCVNA<\/span><\/td>\nCARVANA CO<\/span><\/td>\n36.8<\/span><\/td>\n203.40<\/span><\/td>\n5<\/span><\/td>\n100<\/span><\/td>\n86<\/span><\/td>\n<\/tr>\n
2<\/span><\/td>\nTWLO<\/span><\/td>\nTWILIO* INC-A<\/span><\/td>\n17.3<\/span><\/td>\n108.10<\/span><\/td>\n5<\/span><\/td>\n100<\/span><\/td>\n86<\/span><\/td>\n<\/tr>\n
3<\/span><\/td>\nPYPL<\/span><\/td>\nPAYPAL HOLDINGS<\/span><\/td>\n87.8<\/span><\/td>\n85.35<\/span><\/td>\n5<\/span><\/td>\n100<\/span><\/td>\n81<\/span><\/td>\n<\/tr>\n
4<\/span><\/td>\nCRDO<\/span><\/td>\nCREDO TECH GRP<\/span><\/td>\n12.1<\/span><\/td>\n67.21<\/span><\/td>\n5<\/span><\/td>\n99<\/span><\/td>\n62<\/span><\/td>\n<\/tr>\n
5<\/span><\/td>\nTHC<\/span><\/td>\nTENET HEALTH<\/span><\/td>\n11.7<\/span><\/td>\n126.20<\/span><\/td>\n5<\/span><\/td>\n99<\/span><\/td>\n78<\/span><\/td>\n<\/tr>\n
6<\/span><\/td>\nCHWY<\/span><\/td>\nCHEWY INC<\/span><\/td>\n14.7<\/span><\/td>\n33.49<\/span><\/td>\n5<\/span><\/td>\n99<\/span><\/td>\n72<\/span><\/td>\n<\/tr>\n
7<\/span><\/td>\nXYZ<\/span><\/td>\nBLOCK INC*<\/span><\/td>\n56.8<\/span><\/td>\n84.99<\/span><\/td>\n5<\/span><\/td>\n99<\/span><\/td>\n85<\/span><\/td>\n<\/tr>\n
8<\/span><\/td>\nISRG<\/span><\/td>\nINTUITIVE SURG<\/span><\/td>\n190.7<\/span><\/td>\n522.00<\/span><\/td>\n5<\/span><\/td>\n99<\/span><\/td>\n92<\/span><\/td>\n<\/tr>\n
9<\/span><\/td>\nDOCU<\/span><\/td>\nDOCUSIGN INC<\/span><\/td>\n18.2<\/span><\/td>\n89.94<\/span><\/td>\n5<\/span><\/td>\n99<\/span><\/td>\n83<\/span><\/td>\n<\/tr>\n
10<\/span><\/td>\nGM<\/span><\/td>\nGENERAL MOTORS<\/span><\/td>\n56.9<\/span><\/td>\n53.27<\/span><\/td>\n5<\/span><\/td>\n98<\/span><\/td>\n55<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
All 5,200+ stocks US and Canadian stocks, 16 sector groups, 200+ industries, and 700+\u00a0 ETFs have been updated: Two-week free trial:<\/b> www.ValuEngine.com<\/b><\/a>\u00a0\u00a0<\/b><\/h5>\n

For this week, we then screened for ETFs that contained each stock that were also rated <\/span>5 <\/b>(Strong Buy), focusing on the ETF that held the stock in the greatest percentage, then traveling down the lists of ETFs that held it until we found one rated <\/span>5.\u00a0 <\/b>This resulted in a\u00a0 list of Strong Buy 5 rated ETFs that held at least one Strong Buy 5 rated stock as a major holding.\u00a0<\/span><\/p>\n

Here are the strong-buy-rated ETFs matched up to each stock.\u00a0\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Ticker<\/b><\/td>\nCompany Name<\/b><\/td>\nETF Ticker<\/b><\/td>\nETF Name<\/b><\/td>\nObjective<\/b><\/td>\nActively\u00a0<\/b><\/p>\n

Managed?<\/b><\/td>\n<\/tr>\n

CVNA<\/span><\/td>\nCARVANA CO<\/span><\/td>\nPEZ<\/b><\/td>\nInvesco Dorsey Wright Consumer Cyclicals Momentum ETF<\/span><\/td>\nBuys Cyclicals with Strong Price Momentum and Good Fundamentals<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
TWLO<\/span><\/td>\nTWILIO INC-A<\/span><\/td>\nBOUT<\/b><\/td>\nInnovator IBD Breakout Opportunities ETF<\/span><\/td>\nTechnical Analysis-Driven Breakout Opportunities<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
PYPL<\/span><\/td>\nPAYPAL HOLDINGS<\/span><\/td>\nFDN<\/b><\/td>\nFirst Trust Dow Jones Internet Index Fund<\/span><\/td>\nInvest in firms deriving at least half their revenues from internet<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
CRDO<\/span><\/td>\nCREDO TECH GRP<\/span><\/td>\nIPO<\/b><\/td>\nRenaissance IPO ETF<\/span><\/td>\nTracks Index of Significant IPOs added 5th Trading Day<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
THC<\/span><\/td>\nTENET HEALTH<\/span><\/td>\nRJMG<\/b><\/td>\nRaymond James Multicap Growth Equity Multi-Cap Growth Equity ETF<\/span><\/td>\nBuy growth stocks rated as outperform by RJ research department<\/span><\/td>\nYes<\/span><\/td>\n<\/tr>\n
CHWY<\/span><\/td>\nCHEWY INC<\/span><\/td>\nPINK<\/b><\/td>\nSimplify Health Care ETF<\/span><\/td>\nPINK is an actively managed fund of US healthcare stocks and\/or ETFs. The fund seeks long-term capital growth<\/span><\/td>\nYes<\/span><\/td>\n<\/tr>\n
XYZ<\/span><\/td>\nBLOCK INC<\/span><\/td>\nEBIZ<\/b><\/td>\nGlobal X e-Commerce ETF<\/span><\/td>\nInvest in firms likely to profit from e-Commerce Boom<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
ISRG<\/span><\/td>\nINTUITIVE SURG<\/span><\/td>\nEKG<\/b><\/td>\nFirst Trust Nasdaq Lux Digital Health Solutions ETF<\/span><\/td>\nEKG tracks a cap-weighted index of companies engaged in digital health technologies.<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
DOCU<\/span><\/td>\nDOCUSIGN INC<\/span><\/td>\nDVOL<\/b><\/td>\nFirst Trust Dorsey Wright Momentum & Low Volatility ETF<\/span><\/td>\nDVOL tracks an index of 50 large- and mid-cap, low volatility stocks exhibiting relative strength.<\/span><\/td>\nNo<\/span><\/td>\n<\/tr>\n
DGM<\/span><\/td>\nGENERAL MOTORS<\/span><\/td>\nSIXA<\/b><\/td>\nETC 6 Meridian Mega Cap Equity ETF<\/span><\/td>\nSIXA is an actively managed fund that invests in large cap US equities selected from the Russell 3000 Index.<\/span><\/td>\nYes<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Current ValuEngine reports on all covered stocks and ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

Since this column features ten ETFs and space is limited, we present two tables with five ETFs apiece followed by two benchmark index ETFs, <\/span>IVV<\/b> from iShares by Blackrock that replicates the S&P 500 Index and <\/span>RSP <\/b>from Invesco that evenly allocates the holdings of the S&P 500 instead of market cap weighted.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
ETF Ticker<\/b><\/td>\nPEZ<\/b><\/td>\nBOUT<\/b><\/td>\nFDN<\/b><\/td>\nIPO<\/b><\/td>\nRJMG<\/b><\/td>\n<\/tr>\n
Category<\/span><\/td>\nInvesco Dorsey Wright Consumer Cyclicals Momentum ETF<\/span><\/td>\nInnovator IBD Breakout Opportunities ETF<\/span><\/td>\nFirst Trust Dow Jones Internet Index Fund<\/span><\/td>\nRenaissance IPO ETF<\/span><\/td>\nFT Raymond James Multicap Growth Equity ETF<\/span><\/td>\n<\/tr>\n
ValuEngine Rating<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n<\/tr>\n
Current Price<\/span><\/td>\n100.67<\/span><\/td>\n40.54<\/span><\/td>\n249.54<\/span><\/td>\n45.97<\/span><\/td>\n24.24<\/span><\/td>\n<\/tr>\n
Forecast 3-mo. Price Return<\/span><\/td>\n2.64%<\/b><\/td>\n2.27%<\/span><\/td>\n2.18%<\/span><\/td>\n2.09%<\/span><\/td>\n1.99%<\/span><\/td>\n<\/tr>\n
Forecast 6-Mo. Price Return<\/span><\/td>\n5.30%<\/b><\/td>\n5.68%<\/span><\/td>\n4.70%<\/span><\/td>\n5.06%<\/span><\/td>\n4.29%<\/span><\/td>\n<\/tr>\n
Forecast 1-yr. Price Return<\/span><\/td>\n7.33%<\/b><\/td>\n6.22%<\/span><\/td>\n5.06%<\/span><\/td>\n6.26%<\/span><\/td>\n4.20%<\/span><\/td>\n<\/tr>\n
Historic 1 mo. Price Return<\/span><\/td>\n-9.80%<\/span><\/td>\n-5.61%<\/span><\/td>\n-3.37%<\/span><\/td>\n-3.92%<\/span><\/td>\n-3.28%<\/span><\/td>\n<\/tr>\n
Historic 3 mo. Price Return<\/span><\/td>\n-4.87%<\/span><\/td>\n6.68%<\/span><\/td>\n11.64%<\/b><\/td>\n2.66%<\/span><\/td>\n2.05%<\/span><\/td>\n<\/tr>\n
Historic 6 mo. Price Return<\/span><\/td>\n4.99%<\/span><\/td>\n10.23%<\/span><\/td>\n17.66%<\/b><\/td>\n7.62%<\/span><\/td>\n7.33%<\/span><\/td>\n<\/tr>\n
Historic 1-Year Price Return<\/span><\/td>\n20.05%<\/span><\/td>\n20.24%<\/span><\/td>\n29.70%<\/span><\/td>\n22.72%<\/span><\/td>\n22.36%<\/span><\/td>\n<\/tr>\n
Historic 3-Yr Ann. Price Return<\/span><\/td>\n14.57%<\/span><\/td>\n5.34%<\/span><\/td>\n14.89%<\/span><\/td>\n-15.25%<\/span><\/td>\nNA<\/span><\/td>\n<\/tr>\n
Historic 5-Yr Ann. Price Return<\/span><\/td>\n11.67%<\/span><\/td>\n12.44%<\/b><\/td>\n11.17%<\/span><\/td>\n6.74%<\/span><\/td>\nNA<\/span><\/td>\n<\/tr>\n
Volatility<\/span><\/td>\n30.8%<\/span><\/td>\n21.5%<\/span><\/td>\n24.6%<\/span><\/td>\n32.7%<\/span><\/td>\n14.6%<\/span><\/td>\n<\/tr>\n
Sharpe Ratio<\/span><\/td>\n0.38<\/span><\/td>\n0.58<\/span><\/td>\n0.45<\/span><\/td>\n0.21<\/span><\/td>\n1.07<\/span><\/td>\n<\/tr>\n
Beta<\/span><\/td>\n1.41<\/span><\/td>\n0.98<\/span><\/td>\n1.11<\/span><\/td>\n1.25<\/span><\/td>\n1.20<\/span><\/td>\n<\/tr>\n
# of Stocks<\/span><\/td>\n39<\/span><\/td>\n34<\/span><\/td>\n42<\/span><\/td>\n26<\/span><\/td>\n41<\/span><\/td>\n<\/tr>\n
Div. Yield<\/span><\/td>\n0.1%<\/span><\/td>\n0.6%<\/span><\/td>\n0.0%<\/span><\/td>\n0.1%<\/span><\/td>\n0.0%<\/span><\/td>\n<\/tr>\n
Assets (AUM) ($M)<\/span><\/td>\n68.82<\/span><\/td>\n14.06<\/span><\/td>\n6697.23<\/span><\/td>\n158.92<\/span><\/td>\n12.07<\/span><\/td>\n<\/tr>\n
Expense Ratio<\/span><\/td>\n0.60%<\/span><\/td>\n0.85%<\/span><\/td>\n0.51%<\/span><\/td>\n0.60%<\/span><\/td>\n0.85%<\/span><\/td>\n<\/tr>\n
Largest Holding Pct.<\/span><\/td>\n ROYAL CARIBBEAN (4.26%)<\/span><\/td>\n PLANET FITNESS (6.07%)<\/span><\/td>\nMETA PLATFORMS (10.04%)<\/span><\/td>\n ARM HOLDINGS (9.68%)<\/span><\/td>\nBOSTON SCIENTIF (2.64%)<\/span><\/td>\n<\/tr>\n
ETF Issuer<\/span><\/td>\nInvesco\u00a0<\/span><\/td>\nInnovator<\/span><\/td>\nFirst Trust\u00a0\u00a0<\/span><\/td>\nRenaissance Capital<\/span><\/td>\nFirst Trust\u00a0\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Here are the next five:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
ETF Ticker<\/b><\/td>\nPINK<\/b><\/td>\nEBIZ<\/b><\/td>\nEKG<\/b><\/td>\nDVOL<\/b><\/td>\nSIXA<\/b><\/td>\n<\/tr>\n
Category<\/span><\/td>\nSimplify Health Care ETF<\/span><\/td>\nGlobal X E-commerce ETF<\/span><\/td>\nFirst Trust Nasdaq Lux Digital Health Solutions ETF<\/span><\/td>\nFirst Trust Dorsey Wright Momentum & Low Volatility ETF<\/span><\/td>\nETC 6 Meridian Mega Cap Equity ETF<\/span><\/td>\n<\/tr>\n
ValuEngine Rating<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n5<\/span><\/td>\n<\/tr>\n
Current Price<\/span><\/td>\n29.71<\/span><\/td>\n28.78<\/span><\/td>\n17.71<\/span><\/td>\n35.44<\/span><\/td>\n44.96<\/span><\/td>\n<\/tr>\n
Forecast 3-mo. Price Return<\/span><\/td>\n1.09%<\/span><\/td>\n2.49%<\/span><\/td>\n1.34%<\/span><\/td>\n1.72%<\/span><\/td>\n1.56%<\/span><\/td>\n<\/tr>\n
Forecast 6-Mo. Price Return<\/span><\/td>\n1.90%<\/span><\/td>\n4.87%<\/span><\/td>\n2.72%<\/span><\/td>\n3.78%<\/span><\/td>\n3.86%<\/span><\/td>\n<\/tr>\n
Forecast 1-yr. Price Return<\/span><\/td>\n2.86%<\/span><\/td>\n7.73%<\/span><\/td>\n3.70%<\/span><\/td>\n3.29%<\/span><\/td>\n3.01%<\/span><\/td>\n<\/tr>\n
Historic 1 mo. Price Return<\/span><\/td>\n-4.85%<\/span><\/td>\n-2.70%<\/b><\/td>\n-2.93%<\/span><\/td>\n-4.09%<\/span><\/td>\n-5.08%<\/span><\/td>\n<\/tr>\n
Historic 3 mo. Price Return<\/span><\/td>\n-6.64%<\/span><\/td>\n7.59%<\/span><\/td>\n5.77%<\/span><\/td>\n0.55%<\/span><\/td>\n-3.65%<\/span><\/td>\n<\/tr>\n
Historic 6 mo. Price Return<\/span><\/td>\n-4.64%<\/span><\/td>\n17.13%<\/span><\/td>\n13.48%<\/span><\/td>\n9.99%<\/span><\/td>\n3.45%<\/span><\/td>\n<\/tr>\n
Historic 1-Year Price Return<\/span><\/td>\n4.71%<\/span><\/td>\n43.47%<\/b><\/td>\n10.77%<\/span><\/td>\n22.77%<\/span><\/td>\n16.92%<\/span><\/td>\n<\/tr>\n
Historic 3-Yr Ann. Price Return<\/span><\/td>\n13.48%<\/span><\/td>\n13.98%<\/span><\/td>\nNA<\/span><\/td>\n13.72%<\/span><\/td>\n18.65%<\/b><\/td>\n<\/tr>\n
Historic 5-Yr Ann. Price Return<\/span><\/td>\n3.71%<\/span><\/td>\n8.20%<\/span><\/td>\nNA<\/span><\/td>\n8.40%<\/span><\/td>\n11.40%<\/span><\/td>\n<\/tr>\n
Volatility<\/span><\/td>\n17.0%<\/span><\/td>\n29.6%<\/span><\/td>\n29.3%<\/span><\/td>\n18.6%<\/span><\/td>\n13.9%<\/span><\/td>\n<\/tr>\n
Sharpe Ratio<\/span><\/td>\n0.22<\/span><\/td>\n0.28<\/span><\/td>\n-0.26<\/span><\/td>\n0.45<\/span><\/td>\n0.82<\/span><\/td>\n<\/tr>\n
Beta<\/span><\/td>\n0.78<\/span><\/td>\n1.27<\/span><\/td>\n1.42<\/span><\/td>\n0.89<\/span><\/td>\n0.77<\/b><\/td>\n<\/tr>\n
# of Stocks<\/span><\/td>\n54<\/span><\/td>\n40<\/span><\/td>\n39<\/span><\/td>\n51<\/span><\/td>\n50<\/span><\/td>\n<\/tr>\n
Div. Yield<\/span><\/td>\n0.3%<\/span><\/td>\n0.2%<\/span><\/td>\n0.0%<\/span><\/td>\n0.7%<\/span><\/td>\n1.7%<\/span><\/td>\n<\/tr>\n
Assets (AUM) ($M)<\/span><\/td>\n139.66<\/span><\/td>\n68.17<\/span><\/td>\n2.66<\/span><\/td>\n55.90<\/span><\/td>\n291.97<\/span><\/td>\n<\/tr>\n
Expense Ratio<\/span><\/td>\n0.50%<\/span><\/td>\n0.50%<\/span><\/td>\n0.65%<\/span><\/td>\n0.60%<\/span><\/td>\n0.48%<\/b><\/td>\n<\/tr>\n
Largest Holding Pct.<\/span><\/td>\n ARCUTIS BIOTHERMAL (7.7%)<\/span><\/td>\n CARVANA CO (5.59%)<\/span><\/td>\n DEXCOM INC (8.67%)<\/span><\/td>\nKINDER MORGAN (3.33%)<\/span><\/td>\n ALTRIA GROUP (5.2%)<\/span><\/td>\n<\/tr>\n
ETF Issuer<\/span><\/td>\nSimplify\u00a0<\/span><\/td>\nGlobal X E-commerce ETF<\/span><\/td>\nFirst Trust<\/span><\/td>\nFirst Trust\u00a0\u00a0<\/span><\/td>\nExchange Traded Concepts<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Current ValuEngine reports on all covered stocks and ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

Here is an identical data table for the cap-weighted (IVV) and equally weighted (RSP) S&P 500\u00a0 index ETFs:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Fund Ticker<\/b><\/td>\nIVV<\/b><\/td>\nRSP<\/b><\/td>\n<\/tr>\n
Category<\/span><\/td>\niShares Core S&P 500 ETF<\/span><\/td>\nInvesco S&P 500 Equal Weight ETF\u00a0<\/span><\/td>\n<\/tr>\n
ValuEngine Rating<\/span><\/td>\n5<\/span><\/td>\n2<\/span><\/td>\n<\/tr>\n
Current Price<\/span><\/td>\n605.23<\/span><\/td>\n182.12<\/span><\/td>\n<\/tr>\n
Forecast 3-mo. Price Return<\/span><\/td>\n1.28%<\/span><\/td>\n0.94%<\/span><\/td>\n<\/tr>\n
Forecast 6-Mo. Price Return<\/span><\/td>\n2.81%<\/span><\/td>\n2.67%<\/span><\/td>\n<\/tr>\n
Forecast 1-yr. Price Return<\/span><\/td>\n1.67%<\/span><\/td>\n0.89%<\/span><\/td>\n<\/tr>\n
Historic 1 mo. Price Return<\/span><\/td>\n-0.79%<\/span><\/td>\n-0.05%<\/span><\/td>\n<\/tr>\n
Historic 3 mo. Price Return<\/span><\/td>\n2.56%<\/span><\/td>\n-0.71%<\/span><\/td>\n<\/tr>\n
Historic 6 mo. Price Return<\/span><\/td>\n7.18%<\/span><\/td>\n5.28%<\/span><\/td>\n<\/tr>\n
Historic 1-Year Price Return<\/span><\/td>\n26.47%<\/span><\/td>\n17.03%<\/span><\/td>\n<\/tr>\n
Historic 3-Yr Ann. Price Return<\/span><\/td>\n30.92%<\/span><\/td>\n13.23%<\/span><\/td>\n<\/tr>\n
Historic 5-Yr Ann. Price Return<\/span><\/td>\n11.99%<\/span><\/td>\n8.30%<\/span><\/td>\n<\/tr>\n
Volatility<\/span><\/td>\n18.4%<\/span><\/td>\n20.9%<\/span><\/td>\n<\/tr>\n
Sharpe Ratio<\/span><\/td>\n0.65<\/span><\/td>\n0.40<\/span><\/td>\n<\/tr>\n
Beta<\/span><\/td>\n1.00<\/span><\/td>\n1.08<\/span><\/td>\n<\/tr>\n
# of Stocks<\/span><\/td>\n500<\/span><\/td>\n500<\/span><\/td>\n<\/tr>\n
Div. Yield<\/span><\/td>\n1.3%<\/span><\/td>\n0.7%<\/span><\/td>\n<\/tr>\n
Assets (AUM) ($M)<\/span><\/td>\n490475.62<\/span><\/td>\n71840.00<\/span><\/td>\n<\/tr>\n
Expense Ratio<\/span><\/td>\n0.03%<\/span><\/td>\n0.20%<\/span><\/td>\n<\/tr>\n
Largest Holding Pct.<\/span><\/td>\n APPLE INC (7.12%)<\/span><\/td>\nCONSTELLATION ENERGY (0.27%)<\/span><\/td>\n<\/tr>\n
ETF Issuer<\/span><\/td>\niShares\u00a0\u00a0\u00a0<\/span><\/td>\nInvesco\u00a0\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Analysis<\/b><\/p>\n

That is admittedly a lot of data for a blog article posting. Now for some of our analysis of all of that.<\/span><\/p>\n

All 10 ETFs illustrated here were chosen because they are rated <\/span>5<\/b> (Strong Buy) by ValuEngine\u2019s quantitative models.\u00a0 Within this list, the next differentiation are the forecast price returns.\u00a0 In this case, the same ETF ranks highest for 3-month, 6-month and 12-month forecast price gains.<\/span><\/p>\n

That ETF is the <\/span>Invesco Dorsey Wright Consumer Cyclicals Momentum ETF<\/span> (<\/span>PEZ<\/b>). Its indexed methodology employs quarterly rebalancing to buy cyclical sector stocks with strong price momentum and Fundamentals. Its current second-largest position is Carvana (<\/span>CVNA<\/b>).\u00a0 In terms of recent history, it posted negative returns for the past six months but a robust 20% return for the 12 months.\u00a0 Its five-year annualized return is superior to that of equally-weighted (<\/span>RSP<\/b>) and competitive with that of (<\/span>SPY).\u00a0 <\/b>On the negative side for conservative investors, its volatility is 40% higher than the benchmark while paying close to zero yield.\u00a0\u00a0<\/span><\/p>\n

The Innovator Breakout Opportunities ETF <\/span>(<\/span>BOUT<\/b>) is a rare \u201ctraditional\u201d 100% long ETF by Innovator ETFs.\u00a0 The firm is best known for its highly successful suite of defined protection ETFs. It’s on our list because of its large position in Twilio Inc (<\/span>TWLO<\/b>), the second highest ranked of our top 10 stocks from the prior blog. <\/span>BOUT <\/b>tracks an index of stocks that are likely to break out, as determined by technical analysis. Holdings are weighted by a mix of fundamental and technical factors. While its periodic price gain\/loss history is quite similar to that of <\/span>PEZ, BOUT <\/b>has much lower volatility.\u00a0 Its beta of 0.98 puts it in line with the S&P.\u00a0 Unlike most equity ETFs, the fund may hold up to 50% T-bills based on technical market signals. One note of caution, its meager $14 million in AUM may make it difficult to trade on some platforms and wide bid-ask spreads may become an issue.<\/span><\/p>\n

First Trust Dow Jones Internet Index Fund<\/span> (<\/span>FDN<\/b>) which holds Paypal (<\/span>PYPL<\/b>) is one of four First Trust ETFs in this list. <\/span>FDN <\/b>cap-weights US companies that derive at least 50% of total revenues from the internet.\u00a0 <\/span>FDN <\/b>has the best 3-month and 6-month historical returns among our 10 ETFs.\u00a0 Its longer period returns are at least third best in each period.\u00a0\u00a0<\/span><\/p>\n

Renaissance IPO Fund<\/span> (<\/span>IPO<\/b>) is designed to profit off initial public offerings (IPOs) of newly issued stocks.\u00a0 The relevant stock for this article is Credo Holdings (<\/span>CRDO<\/b>). <\/span>IPO<\/b>\u2019s index methodology selects what it considers \u201csignificant\u201d IPOs and adds them every fifth business day.\u00a0 This contributed to its unusually high portfolio turnover rate. <\/span>IPO <\/b>has performed quite well during the past 12 months but is the worst performer in terms of returns for the 3-year and 5-year periods. Its feast-or-famine strategy also gives it high volatility but gets investors in \u201con the ground floor” of what could be the most\u00a0 successful companies of the future.<\/span><\/p>\n

FT Raymond James Multi-Cap Equity ETF<\/span> (<\/span>RJMG<\/b>) holds a portfolio of US growth stocks rated as strong buy or outperform by Raymond James\u2019 proprietary equity research model.\u00a0The actively managed fund seeks long-term capital appreciation.\u00a0RJMG\u2019s position in Tenet (<\/span>THC<\/b>) landed it on this list. This ETF has just completed its one-year anniversary.\u00a0 Thus far, its performance has been in the middle of the pack.\u00a0 This is the venerable Wealth Manager and broker\u2019s first foray into sub-managing an ETF. But rather than become the issuer, it partnered with First Trust for the launch.\u00a0 Partially due to its short tenure, it only raised $12 million in AUM thus far. Again, that may cause wide bid-ask spreads when trying to purchase or sell. Another negative, its 85 basis point (0.85%) expense ratio ties with <\/span>BOUT<\/b> for the most expensive ETF on this list. It reflects that the fund is actively managed and uses RJ wealth management resources.<\/span><\/p>\n

Simplify Health Care ETF (<\/span>PINK<\/b>) is an actively managed fund of US healthcare stocks and\/or ETFs. The fund seeks long-term capital growth.\u00a0 It holds Chewy (<\/span>CHWY<\/b>) to qualify for this list even though that seems like an interesting stretch for a health-care ETF.\u00a0 I suppose the health of canine\u2019s canines and incisors counts as health care.\u00a0 This ETF\u2019s largest position, Arcutis Biotheraputics (<\/span>ARQT<\/b>), a biopharma company with a promising pipeline, is also rates <\/span>5 <\/b>(Strong Buy).\u00a0 <\/span>PINK\u2019s <\/b>top 10 holdings includes 3 other stocks rated <\/span>5: <\/b>Purecycle Technologies, Inc. (<\/span>PCT<\/b>), Intuitive Surgical (<\/span>ISRG<\/b>) and Resmed Inc. (<\/span>RMD<\/b>). Its management fee of 50 basis points (0.50%) is generally considered very reasonable for an actively managed ETF and its volatility is lower than that of <\/span>IVV<\/b> (iShares S&P 500 ETF). AUM of more than $135 million gives it substantial gravitas relative to the majority of thematic ETFs. On the other hand, its recent performance history has been a bit below average. It remains to be seen whether that spells added value opportunity for <\/span>PINK <\/b>investors, or a warning sign from the market.\u00a0<\/span><\/p>\n

Global X e-Commerce ETF<\/span> (<\/span>EBIZ<\/b>) is a market-cap-weighted indexed ETF holding 40 stocks expected to profit from the e-Commerce boom. In addition to Block Inc. (<\/span>XYZ<\/b>), <\/span>EBIZ <\/b>has <\/span>5-<\/b>rated Strong Buy companies as major holdings: Shopify (<\/span>SHOP<\/b>), Sea Ltd. ADR (<\/span>SE), <\/b>Carvana (<\/span>CVNA<\/b>) and JD Com ADR (<\/span>JD<\/b>). From the perspective of the ValuEngine Valuation model, <\/span>EBIZ<\/b> is the only ETF in this list that has 60% of the companies it holds quantified as Undervalued.\u00a0 On the other hand, its volatility is very high, and 50 basis points is very high for a market-cap weighted index fund with no proprietary data or analytics involved.\u00a0<\/span><\/p>\n

First Trust Nasdaq Lux Digital Health Solutions ETF<\/span> (<\/span>EKG<\/b>) is a modified market-cap index fund designed to measure the performance of a selection of companies that are primarily engaged in and involved at the intersection of healthcare and technology, as classified and selected by Lux Capital based on analysis of the products and services offered by those companies. In addition to Intuitive Surgical, the top ten holdings includes <\/span>5-<\/b>rated (Strong Buy) Resmed (<\/span>RMD) <\/b>along with four <\/span>4<\/b>-rated (Buy) stocks: Veeva Systems (<\/span>VEEV<\/b>); Insulet Corp. (<\/span>PODD<\/b>); Globus Medical (<\/span>GMED<\/b>); and Illumina (<\/span>ILMA).\u00a0 <\/b>A bit more than half the companies held by <\/span>EKG <\/b>are rated undervalued by our valuation model.\u00a0 That said, there are many factors that may offset these positive points.\u00a0 A large one for me is that 65-basis points (0.65%) is on the very high end of a rules based and cap-weighted index fund, especially one that is using the index\u2019s stock selector merely to define whether the businesses the companies are in qualify for the index rather than evaluating the stock\u2019s investment criteria.\u00a0 The fact that the stock selector is an active manager with experience in the space seems offset by the <\/span>de minimus <\/span><\/i>role that Lux is playing in security selection.\u00a0 Another is that the fund is very volatile with the highest standard deviation of any ETF here.\u00a0 The fund only has one year of history and has just $2 million in assets under management which is unsustainable.\u00a0 <\/span>EKG <\/b>has a great ticker symbol and at the time this was written held a great portfolio of stocks as ranked by ValuEngine.\u00a0 It is included because of the way I defined the methodology for this article and it certainly has huge price appreciation potential.\u00a0 However, given the other factors just mentioned, I\u2019d consider this issue more of a highly speculative trading tool than an investment until it garners at least another $20 million under management.\u00a0\u00a0<\/span><\/p>\n

First Trust Dorsey Wright Momentum & Low Volatility ETF<\/span> (<\/span>DVOL<\/b>) – tracks an index of 50 large- and mid-cap, low volatility stocks exhibiting relative strength.\u00a0 The relative strength methodology was developed for the index by Dorsey Wright, a highly respected research provider and asset management firm. \u00a0 The Index is designed to track the performance of 50 stocks comprising the NASDAQ US Large Mid Index that exhibit lowest levels of volatility while still maintaining high levels of relative strength. The $55 million dollars under management is satisfactory, but not a strength.\u00a0 Unlike many of the ETFs just discussed, the only 5-rated major holding in <\/span>DVOL <\/b>is the stock that triggered its inclusion, DocuSign (<\/span>DOCU<\/b>).\u00a0 Its one-year performance ranks it in the middle of the pack and its 5-year return number is weaker.\u00a0 The expense ratio of 60 basis points (0.60%) is too high for an indexed fund.\u00a0\u00a0\u00a0<\/span><\/p>\n

ETC 6 Meridian Mega Cap Equity ETF<\/span> (<\/span>SIXA<\/b>) is an actively managed fund that invests in mega-cap US equities as defined by the 300 largest stocks in the FTSE-Russell 3000 Index.\u00a0 The manager\u2019s focus list is determined by quantitative research driven by the 5 factors its research shows has outperformed other stocks over time.\u00a0 General Motors (<\/span>GM<\/b>) is the reason this ETF was selected.\u00a0 Its top position, Altria Group (<\/span>MO<\/b>) is also ranked <\/span>5 <\/b>(Strong Buy). This ETF has considerably lower volatility and a lower beta than the S&P 500. It also has the lowest expense ratio, 0.48% or 48 basis points, of any of the stocks in this article.\u00a0 Considering this is one of only three actively managed funds with seven indexed funds, that is saying something. Its historic returns rank in the middle of the pack but its historic Sharpe Ratio of 0.82 places it near the top on that metric. It also has the second-highest Assets Under Management in the study.\u00a0 This is noteworthy given that neither ETC, better known as a \u201cwhite label\u201d issuer, nor 6 Meridian are well-known names to most ETF investors.<\/span><\/p>\n

Most of these ten ETFs target specific market niches and thus are not mainstream and have nowhere near the trillions of dollars following S&P 500-indexed ETFs in AUM.\u00a0 Two, <\/span>EKG<\/b> and <\/span>RJMG,<\/b> have short histories and paltry amounts of AUM thus far. This makes them unsuitable for most conservative investors looking for buy-and-hold ETFs in my opinion even though the model predicts them to strongly outperform in 2025 \u2013 if they are not liquidated before then. (investors in ETFs that issuers choose to liquidate come out relatively unharmed other than needing to redeem \u2013 the ETF is backed by its underlying stocks). <\/span>BOUT <\/b>also has a relatively modest amount of AUM but is otherwise a low-beta ETF backed by a strong methodology.\u00a0\u00a0<\/span><\/p>\n

Beyond these three, the other ETFs in the study have a healthy enough amount of assets-under-management in my opinion, but still lower than some trading platforms accept.\u00a0 The group is dominated by two of the leading niche ETF providers, First Trust and Global X.\u00a0 One of the other issuers, Invesco, is a leading provider of both mainstream and niche ETFs and traditional mutual funds.<\/span><\/p>\n

The other ETFs here have issuers that are less commonly known.\u00a0 Innovator, as mentioned, is a relatively new firm that now dominates the market in defined outcome ETFs built to protect principal beyond a set limit of losses but has few long-only and \u201cunprotected\u201d ETFs besides <\/span>BOUT<\/b>.\u00a0 Renaissance Capital focuses exclusively on Initial Purchase Offerings, IPOs.\u00a0 Exchange Traded Concepts (ETC) is an issuer that partners with independent asset managers to launch singular ETFs.\u00a0 Finally, Simplify specializes in what it calls innovative portfolio building blocks, designed to directly solve pressing portfolio challenges. It\u2019s a relative newcomer in the niche provider market and its products tend to be highly quantitative.\u00a0\u00a0<\/span><\/p>\n

Although all ten ETFs are strong buys according to the ValuEngine model, I would regard <\/span>FDN, PINK and SIXA <\/b>as most appropriate as long-term holdings for moderate-to-aggressive investors that are focused on capital gains.\u00a0 However, the longer the holding period, the more that\u00a0fees detrimentally impact annualized rates of return.\u00a0 There are a number of other tactical ETFs ranked as <\/span>5 <\/b>(Strong Buy) by ValuEngine that have fees of 20 basis points or less.\u00a0 This includes a few ETFs encompassing some of the themes we just explored. I will highlight just three of these briefly:<\/span><\/p>\n

    \n
  1. SPDR S&P Kensho New Economies Composite ETF (<\/span>KOMP<\/b>) tracks a tier-weighted index of US-listed companies with products or services that disrupt traditional industries.\u00a0 Its expense ratio is just 20 basis points (0.20%).\u00a0 The ETF has more than $2 billion in assets under management and has highly competitive historical rates of return.<\/span><\/li>\n
  2. The Consumer Discretionary Select Sector SPDR Fund\u00a0 (<\/span>XLY<\/b>) tracks a cap-weighted index of Consumer Discretionary Sector companies.\u00a0 The fee is just 9 basis points and it has more than $23 billion in AUM.<\/span><\/li>\n
  3. Fidelity Momentum Factor ETF (<\/span>FDMO<\/b>) \u00a0is designed to reflect the performance of stocks of large and mid-capitalization U.S. companies that exhibit positive momentum signals.\u00a0 The fee is 16 basis points (0.16%) and the Assets Under Management is just under $400 Million.<\/span><\/li>\n<\/ol>\n
    Financial Advisory Services based on ValuEngine research available:\u00a0 <\/b>www.ValuEngineCapital.com<\/b><\/a><\/h5>\n

    Altogether, there are 13 top-rated ETFs in this column and we will monitor performance throughout the coming year.\u00a0 However, that does not necessarily mean that these ETFs will continue to be ranked highly throughout the year.\u00a0 Unlike the individual stocks we rate, ETFs change composition throughout the year and the ValuEngine rating system may have higher ratings on the stocks being sold than on the stocks being bought.\u00a0 Add to that the fact that ValuEngine\u2019s predictive stock model is very dynamic to begin with and stock ratings vary weekly.\u00a0 The best strategy would be to re-evaluate such holdings at least quarterly. Finally, this list is for informational and measurement purposes only.\u00a0 As always, please consult the summary prospectus, the ETFs website and do your own research before contemplating buying any ETFs.\u00a0 The stock market is a very dynamic place where the only constant is change.\u00a0 <\/span>________________________________________________________________<\/span><\/p>\n

    By Herbert Blank<\/b><\/h5>\n
    Senior Quantitative Analyst, ValuEngine Inc<\/b><\/h5>\n
    www.ValuEngine.com<\/b><\/a><\/h5>\n
    support@ValuEngine.com<\/b><\/h5>\n
    All of the over 4,200 stocks, 16 sector groups, over 250 industries, and 600 ETFs have been updated on<\/b> www.ValuEngine.com<\/b><\/a><\/h5>\n
    Financial Advisory Services based on ValuEngine research available through<\/b> ValuEngine Capital Management, LLC<\/b><\/a><\/h5>\n
    Free Two-Week Trial to all 5,000 plus equities covered by ValuEngine<\/b> HERE<\/b><\/a><\/h5>\n

    Subscribers log in <\/b>HERE<\/b><\/a><\/p>\n

    \u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Following on last week\u2019s top 10 list, this week\u2019s blog focuses on ETFs related to the stocks in the list. We begin with lots and lots of data in the form of several tables, and end with our written analysis. Skip to the end if you prefer to jump to the conclusions we make on … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2523,2501,2517,2500,2515,1356,2513,2270,2519,2529,2527,2528,1760,2223,513,2520,1731,2524,2502,2518,1770,2522,2526,2056,2514,1510,1938,1827,2267,2525,1858,2530,1712,1699,1281,2516,2289,2505,28,1656,1659,63,2521,2531],"_links":{"self":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3459"}],"collection":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/comments?post=3459"}],"version-history":[{"count":3,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3459\/revisions"}],"predecessor-version":[{"id":3462,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3459\/revisions\/3462"}],"wp:attachment":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/media?parent=3459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/categories?post=3459"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/tags?post=3459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}