Buy on the Dip Prospects: November 4 Edition

Here is a look at ETFs that currently offer attractive short 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 medium-term and long-term trends, respectively.Second, each of these ETFs is also trading below its 20-day moving average, thereby offering a near-term “buy on the dip” opportunity given the longer-term uptrend at hand. Note that this 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 premium content, sign up for a free 14-day trial to Pro.More than 100 ETFs made it to the list of buy on the dip prospects this month. The three U.S. indices declined this month ahead of the U.S. Presidential election and as the number of Covid-19 cases jumped in the U.S.Many clean energy ETFs such as Invesco Solar ETF (TAN B) and iShares Global Clean Energy ETF (ICLN A-) featured on buy on the dip prospects’ list returning ~142% and ~82% in the last one year. These ETFs soared in recent times as the current pandemic brought to light the advantages of clean energy as well as Mr. Biden’s pro-renewable energy agenda.Several biotechnology ETFs like Direxion Daily S&P Biotech Bull 3x Shares (LABU ) and SPDR S&P Biotech ETF (XBI B-) also made it to the list as the biotechnology sector fell by 9.5% in the last month.Many precious metals ETFs like VanEck Vectors Gold Miners ETF (GDXJ B) and iShares Silver Trust (SLV C+) also featured on the buy on the dip prospects list as prices of both gold and silver fell by ~2% and ~3.5% in the last month.Several sector-specific ETFs like Technology Select Sector SPDR Fund (XLK A) and Consumer Staples Select Sector SPDR Fund (XLP A) and Health Care Select Sector SPDR Fund (XLV A) made it to the buy on the dip prospects list as the respective sectors declined by 1.9%, 1.3% and 2% respectively, in the last month.Many corporate bond ETFs like SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB), Vanguard Short-Term Corporate Bond ETF (VCSH A) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG A) made it to the list of buy on the dip prospects. Bond prices fell as uncertainties increased ahead of the U.S. Presidential elections. Compare and contrast the two bond ETFs using our ETF Comparison tool.To compare this month’s list with the one published on October 7, 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.

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