A Look At The Christmas Tree Of Top-Ranked ETFs
Zacks Investment Research | Dec 23, 2018 10:05PM ET
Christmas celebrations are incomplete without the traditional tree, a symbol of goodwill and love adorned with shining lights and silver bells. Given its significance in this season of joy, we have built a tree with the top-ranked ETFs that have the potential to outperform in 2019.
Let’s build the base first, which is the most valuable part, and of course the place where all gifts are to be found. There’s nothing’s more fitting than the broad market ETF SPDR S&P 500 (AX:SPY) , which tracks the major U.S. benchmark — the S&P 500 index — to give a solid foundation to our tree. The index is on the brink of a bear market, losing 18% from its peak early this year, triggered by myriad woes ranging from U.S.-China trade tension to global growth concerns. The partial government shutdown added to the woes.
However, the beaten down price is a solid attractive entry point for investors, given an improving economy and the Fed’s dovish outlook, which will keep rates under control for 2019. The American economy is on track this year to expand at the fastest pace in 13 years, thanks to robust job creation, strong GDP growth, a 50-year low unemployment rate, solid wage gains, as well as rising consumer and business confidence. This would provide a boost to the broad market and SPY (NYSE:SPY), which has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Zacks Investment Research
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