Buy on the Dip Prospects: December 30 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 40 ETFs made it to the list of buy on the dip prospects this month. The three U.S. indices increased this month on low weekly jobless claims.Many ETFs focusing on China like KraneShares CSI China Internet ETF (KWEB B+) and Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (ASHR C+) topped this month’s buy on the dip prospects’ list as stocks fell in China after the country initiated an anti-monopoly probe into the e-commerce giant Alibaba Group.Several emerging markets ETFs such as iShares Core MSCI Emerging Markets ETF (IEMG A) and iShares MSCI Emerging Markets ETF (EEM A-) also made it to the buy on the dip prospects’ list as shares fell driven by the discovery of a new virus strain in Latin America and rising tensions between the U.S. and China.Several sector specific ETFs such as Industrial Select Sector SPDR Fund (XLI A) and Consumer Staples Select Sector SPDR Fund (XLP A) made it to the list of buy on the dip prospects as both industrial and consumer staples sectors fell by 1.6% and 0.01% respectively in the last month.Many real-estate focused ETFs like Real Estate Select Sector SPDR Fund (XLRE ), iShares U.S. Real Estate ETF (IYR A) and Vanguard REIT ETF (VNQ A+) ranked amid the buy on the dip contenders as the real estate sector lost 1.6% in the last month. Sales of existing U.S. homes fell more than expected in the month of November.Several energy MLPs such as JPMorgan Alerian MLP Index ETN (AMJ A-) and Alerian MLP ETF (AMLP A) also made it to the list as the energy sector lost more than 4% in the last month. It was the worst performing sector. iShares Global Energy ETF (IXC A-), Vanguard Energy ETF (VDE A) and iShares U.S. Energy ETF (IYE A) were also present on the list. Compare and contrast energy ETFs using our ETF Comparison tool.U.S. Global Jets ETF (JETS C) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) also featured on the list as the aerospace and defense sector fell by ~3.5% in the last month.To compare this month’s list with the one published on December 2, 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