Buy on the Dip Prospects: April 22 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.Only 8 ETFs made it to the list of buy on the dip prospects this month. All three major U.S. indices gain this month as the U.S. President announced a three-stage plan to reopen the U.S. economy.Volatility ETFs like iPath S&P 500 VIX Short-Term Futures ETN (VXX B+), ProShares VIX Short-Term Futures ETF (VIXY A), ProShares Ultra VIX Short-Term Futures ETF (UVXY B-) and VelocityShares Daily 2x VIX Short-Term ETN (TVIX C+) topped the list of buy on the dip prospects as volatility declined. VIX, the CBOE Volatility index, dipped from near 72 to 40 during the month. Volatility declined as the U.S. market gained on the plans of reopening the country’s economy and as the number of coronavirus cases begin to slow down in New York. Compare and contrast the two volatility ETFs using our ETF Comparison tool.SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL B+) was one of the buy on the dip contenders as the yield on U.S. 3 month treasury bill increased from 0.036% to 0.148% in the last month. iShares Short Treasury Bond ETF (SHV A-) that tracks the investment results of the ICE U.S. Treasury Short Bond Index which measures the performance of Treasury bills having maturities in between one month and one year, also made it to the list of buy on the dip prospects.To compare this month’s list with the one published on March 25, 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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