Buy on the Dip Prospects: July 15 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 5 ETFs made it to the list of buy on the dip prospects this month. The three U.S. indices closed higher this month as the market gain amid investor optimism as the economy reopens.Volatility ETFs like iPath S&P 500 VIX Short-Term Futures ETN (VXX B+), ProShares VIX Short-Term Futures ETF (VIXY A), and ProShares Ultra VIX Short-Term Futures ETF (UVXY B-) topped the list of buy on the dip prospects as volatility declined. VIX, the CBOE Volatility index, dipped from near 40 to 29 during the month. VIX achieved a relatively stable level supported by U.S. stock market gains. Compare and contrast the two volatility ETFs using our ETF Comparison tool.iShares MBS ETF (MBB A) that tracks the investment results of an index composed of investment-grade mortgage-backed securities issued by U.S. government agencies also made it to the list of buy on the dip prospects amidst rising delinquency rate as people struggle to pay their bills.iShares Ultra Short-Term ETF (ICSH B-) that seeks to invest in ultra-short-term investment-grade government and corporate securities also featured on the list of buy on the dip prospects gaining ~0.5% over last year.To compare this month’s list with the one published on June 17, 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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