Helping Self-Directed Investors Succeed Blog - Three ETFS To Watch As Markets Try To Move Ahead as of April 5th, 2019

Three ETFS To Watch As Markets Try To Move Ahead as of April 5th, 2019

April 5th, 2019

After the Fed applied the breaks on rate increases the market bulls appear to have received an impetus to push equities higher. Most global equities had a good week which saw the The S&P 500 Tracking ETF - SPY gain +2.16%. The Tech Heavy Nadaq 100 Tracking ETF - QQQ did even better jumping +2.78%. Semi Conductor Sector was a star performer with the The S&P Semiconductor SPDR - XSD Technology sector has been impressive and many related industry groups within this domain look very attractive. The QQQ is yet to surmount its all-time high but many technology related ETFS have broken above long consolidation ranges.

If the market continues its ascent higher, these are a few ETFS self-directed investors may want to keep a closer watch on considering their general outperformance over the broader market.

  • TDIV - First Trust NASDAQ Technology Dividend Index Fund
  • FV - First Trust Dorsey Wright Focus 5 ETF
  • ROBO - Exchange Traded Concepts Trust ROBO Global Robotics and Automation Index ETF

All these three ETFS have been recently showing signs of outperformance with reference to the broader market from a price movement perspective. FV is a fund of funds with majority allocations to five First Trust sector ETFS based on their relative strength. TDIV provides exposure to major technology stocks that pay a dividend. At present Semiconductors stocks have a nearly 31% allocation. ROBO is a multicap ETF that provides exposure to Robotics, Automation and Artificial Intelligence companies. Small and Mid Cap companies take up a larger percentage of allocation and likely to be riskier.

From a technical perspective, all these ETFS are trading above their key averages and nearing long term resistance areas. If the market continues to climb there is a likelihood these resistance areas may be overcome setting the stage for further attractiveness.

Self-directed investors may want to monitor these ETFS to see if continued outperformance is seen if market conditions continue to favor bulls.

Good Luck and Happy Investing!

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