Buy on the Dip Prospects: May 19 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.92 ETFs made it to the list of buy on the dip prospects this month. All three US indices fell due to fears of rising inflation.Many semiconductor ETFs like the Direxion Daily Semiconductor Bull 3X Shares (SOXL B), VanEck Vectors Semiconductor ETF (SMH A-), and iShares PHLX Semiconductor ETF (SOXX B+) featured on the buy on the dip prospects list as the semiconductor segment fell by ~11% in the last month.The Utilities Select Sector SPDR Fund (XLU A) also made it to the list as the utilities sector lost ~0.30% in the last month.The Consumer Discretionary Select Sector SPDR Fund (XLY A) ranked amidst the buy on the dip candidates as the consumer discretionary sector fell by ~6% in the last month. It was the second worst-performing sector this month.The PureFunds ISE Junior Silver ETF (SILJ C) was one of the buy on dip candidates as rising U.S. Treasury yields reduced the demand for the precious metal.Many corporate bond ETFs like the iShares Broad USD High Yield Corporate Bond ETF (USHY), Deutsche X-trackers USD High Yield Corporate Bond ETF (HYLB), and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG ) featured on the list of buy on the dip prospects given the prospect of rising inflation.Several emerging markets ETFs, such as the iShares Core MSCI Emerging Markets ETF (IEMG A) and iShares MSCI Emerging Markets ETF (EEM A-), also ranked amongst the buy on the dip contenders thanks to rising inflation and surging U.S. yields.The U.S. Global Jets ETF (JETS C) also made it to the list of buy on the dip prospects.To compare this month’s list with the one published on April 21, 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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