Buy on the Dip Prospects: March 15 Edition

Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term ‘buy on the dip’ opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro. 58 ETFs made it to the buy on the dip prospects list this month. The market closed lower with all three market indices falling as the U.S. Fed announced a more aggressive rate hike plan. Energy Select Sector SPDR Fund (XLE A) topped the buy on the dip prospects’ list with over 11% annual return as the overall energy sector lost ~4% in the last month. Oil prices fell on interest rate hikes and demand concerns. Alerian MLP ETF (AMLP A-) also made it to the list on falling energy prices. Several Eurozone funds such as iShares MSCI Europe Financials ETF (EUFN B), SPDR EURO STOXX 50 ETF (FEZ B+), and iShares MSCI Eurozone ETF (EZU B+) featured on the list driven by higher-than-expected Eurozone inflation as well as on hawkish U.S. Fed comments. Many short-term bonds ETFs like iShares Short Treasury Bond ETF (SHV B+), SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL B+), and iShares Ultra Short-Term ETF (ICSH B) ranked among the buy on the dip candidates as U.S. Treasury yields climbed on strong U.S. economic report and expected higher interest rate hikes. Many gold ETFs like Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL A), Perth Mint Physical Gold ETF (AAAU ), and iShares Gold Trust (IAU A-) featured on the buy on the dip prospects’ list as gold prices moved lower on the expectation of future interest rate hikes by the Fed and higher Treasury yields. Materials Select Sector SPDR Fund (XLB A) and SPDR S&P Metals & Mining ETF (XME A-) also made it to the list as prices dropped due to a strong U.S. dollar. Also, Tesla’s announcement of not using rare earth elements in its future electric vehicles caused a sell-off in the market. Technology Select Sector SPDR Fund (XLK A) was one of the buy on the dip candidates as the technology sector fell by over 2% in the last month on expected rate hikes and a hawkish stance by the U.S. Fed. Check out our technology ETFs’ list here: To compare this month’s list with the one published on February 15, click here.ETFs to Buy on the DipPlease note that this list is updated on a monthly basis. For more ETF analysis, make sure to sign up for our free ETF newsletter. Disclosure: No positions at time of writing.

More Equity Commentary

IEFA has no more commentary.