Wall Street Favorites: 3 ETFs With Strong Buy Ratings for April 2024


  • Unravel the complexities of investing with these top ETFs to buy, providing a balanced portfolio in an AI-driven market.
  • iShares Semiconductor ETF (SOXX): SOXX’s 58% gain last year highlights its strength in capturing the semiconductor industry’s explosive AI-powered growth.
  • iShares S&P 500 Value ETF (IVE) : Provides exposure to the creme da la creme in value stock investing.
  • Vanguard Energy ETF (VDE): With traditional energy still firmly in demand, VDE’s stellar returns and low expense ratio offer an attractive investment.
ETFs to Buy - Wall Street Favorites: 3 ETFs With Strong Buy Ratings for April 2024

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The stock market can be overwhelmingly intimidating for many. It has been the artificial intelligence (AI) show in the past year or so, where many of the tech giants gained immensely in value. However, the market took a breather over the past few weeks. Moreover, inflation remains sticky, and with potential rate cuts on the horizon, investors find themselves at a crossroads. To avoid all this drama, savvy investors will want to consider betting on the best exchange-traded funds (ETF) to buy.

Investing in ETFs is like visiting a candy store and instead of picking up one type of candy, you get a sampler pack. This pack includes a variety of candies, allowing you to enjoy different flavors and types all at once without having to buy each one individually. That’s the beauty of an ETF: you gain exposure to high-growth potential while effectively minimizing risk.

iShares Semiconductor ETF (SOXX)

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iShares Semiconductor ETF (NASDAQ:SOXX) exposes investors to the biggest names in the burgeoning semiconductor space. It has holdings in 35 different chip giants, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). 

Semiconductors form the backbone of the AI revolution, providing the hardware that powers AI algorithms and applications. AI has been the major investing theme in the past year or so, and many chip stocks in the SOXX ETF witnessed massive gains. Consequently, SOXX stock gained an incredible 58% last year and more than 235% in the past five years, making it an excellent wealth compounder.

Moreover, it yields a modest 0.60% but has paid dividends in the past 14 consecutive years. Also, in the past three years, it has raised its dividend payout, with its three-year dividend growth rate at almost 10%. Therefore, for investors looking to gain exposure to the biggest chip makers with just one stock, look no further than SOXX.

iShares S&P 500 Value ETF (IVE)

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The iShares S&P 500 Value ETF (NYSEARCA:IVE) is one of the top ETFs for value-seeking investors. It offers a strategic entry into 446 undervalued yet fundamentally solid companies within the S&P 500. Moreover, these companies are also selected for their resilience and long-term performance. Investing in the IVE ETF means employing a disciplined approach to effectively tap into the robust potential of America’s leading value stocks.

This ETF diversifies across multiple sectors but roughly 52% of its holdings are linked to financials, healthcare and industrial stocks. Moreover, 26% of its holdings are in consumer defense, technology and energy stocks. Many stocks within its portfolio have been among the most popular over the past several years, including Exxon Mobil (NYSE:XOM), Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B), and AT&T (NYSE:T). Also, the ETF has paid a dividend in the past 14 consecutive years, compared to the sector average of just three years. 

Vanguard Energy ETF (VDE)

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The pursuit of carbon neutrality is underway, but realistically, it will take years for that dream to come to fruition. Hence, investors will want to invest in the Vanguard Energy Index Fund ETF (NYSEARCA:VDE), which places its bet on the leading traditional energy giants. 

It boasts holdings in 118 companies, but most of its stake is in the top fossil fuel players. Given the robustness in energy markets in the past several years, VDE stock is up an eye-catching 104% in the past three years. Moreover, it yields an excellent 2.84%, which edges ahead of the sector median by 11%, having paid a dividend in the past 17 consecutive years. Furthermore, its expense ratio is just 0.10%, behind the sector median by almost 80%. In other words, the fund charges just $1 annually for every $1000 invested.

As we advance, the VDE ETF is expected to benefit immensely from geopolitical tensions and supply constraints that have driven oil prices to new highs this year. Crude oil prices are up over 20% since mid-December, fostering a bullish market sentiment.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/wall-street-favorites-3-etfs-with-strong-buy-ratings-for-april-2024/.

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