Buy on the Dip Prospects: August 11 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.31 ETFs made it to the list of buy on the dip prospects this month. The market closed higher, driven by a rebound in the energy and travel stocks, which had been sluggish performance in the month prior.Several energy ETFs like the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (GUSH ), SPDR S&P Oil & Gas Exploration & Production ETF (XOP B+), and Direxion Daily Energy Bull 3X Shares (ERX C+) featured on the buy on the dip prospects list as the energy sector declined by over 10% in the past month. It was the worst-performing sector this month.Many oil funds like the Invesco DB Oil Fund (DBO B+) and United States Oil Fund (USO A) ranked amongst the buy on the dip contenders as oil prices declined by over 4% in the last month. Oil prices reacted to a resurgence in COVID cases in the United States. Compare and contrast the two oil ETFs using our ETF Comparison tool.The SPDR S&P Metals & Mining ETF (XME A) was also present on the list of buy on the dip prospects as the metals and mining segment declined by more than 1% in the last month. Materials was the third-worst-performing sector this month.A few 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 iBoxx $ High Yield Corporate Bond ETF (HYG A) also made it to the list on the back of a rising number of cases of the delta variant of COVID-19 and fewer-than-expected private sector jobs. Corporate bonds also responded to the fears of rising interest rates upon economic recovery.To compare this month’s list with the one published on July 14, 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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