The Best ETFs to Buy Now
The market is lining up to provide some seasonally strong performance, but investors should always be on the lookout for the sectors and stocks that will outperform even a strong market. With that in mind, I presented some of our proprietary data on exchange-traded funds (ETFs) that are set to outperform the market on CNBC Friday afternoon.
Our Component Breadth Index tracks the technical trends of the component companies to determine the technical breadth of each ETF. For example, in the case of the S&P 500, this indicator measures the technical strength pattern of each of the 500 companies in the index, and then compiles the results into a single number that tells the percentage of those 500 companies that are in a positive uptrend. Higher CBI readings indicate that an ETF is being driven by strong technical trends by a large number of its component companies, thus predicting a better-than-average performance in the short term.
So, which ETFs should you be considering now? Here are three that we favor for a strong year-end performance.