Buy on the Dip Prospects: June 17 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 ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.Only 19 ETFs made it to the list of buy on the dip prospects this month. The three U.S. indices closed higher this month after the Federal Reserve announced that it would hold interest rates near zero to help the economy recover from the COVID-19 impact this year.Many Gold ETFs such as VanEck Vectors Gold Miners ETF (GDX B+) and VanEck Vectors Junior Gold Miners ETF (GDXJ B) topped the list of buy on the dip prospects as gold prices declined mid-month on better-than-expected US non-farm payrolls data, stronger yields, and a slightly firmer dollar. Compare and contrast the two gold mining ETFs using our ETF Comparison tool.Global X Robotics & Artificial Intelligence ETF (BOTZ), Global X Cloud Computing ETF (CLOU) and iShares North American Tech-Software ETF (IGV B+) ranked amongst the buy on the dip contenders as investors began rotating their money from technology to the other beaten-down sectors.Several biotechnology ETFs like iShares Nasdaq Biotechnology ETF (IBB B+) and SPDR S&P Biotech ETF (XBI B-) featured on the buy on the dip prospects list as biotechnology segment lost over 4% in the last month. Health Care Select Sector SPDR Fund (XLV A) that tracks the performance of the health care sector of the S&P 500 Index, also made it to the list as healthcare was the worst-performing sector losing more than 4% in the last month.Several Treasury bond ETFs like iShares 1-3 Year Treasury Bond ETF (SHY A) and iShares Short Treasury Bond ETF (SHV A-) featured on the buy on the dip prospects’ list as yield increased from 0.185% to 0.232% during the month.To compare this month’s list with the one published on May 20, 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