The stock market experienced massive volatility in the year's first half due to various macroeconomic and geopolitical concerns. However, better-than-expected corporate earnings and a slight decline in inflation led to the market witnessing a rebound since July.
As inflation remains elevated, many analysts expect the Fed to maintain its hawkish stance to bring inflation to its target level. A robust job market is expected to encourage the Fed to continue tightening its policy. These factors could keep the market under pressure in the near term.
Amid such uncertain market conditions, investing in resilient ETFs iShares iBoxx $ High Yield Corporate Bond ETF (HYG), iShares MSCI Brazil ETF (EWZ), and Financial Select Sector SPDR Fund (XLF) could be wise. These ETFs are rated Buy in our proprietary POWR Ratings system.
iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
This ETF is designed to copy a benchmark that broadly represents the U.S. dollar-denominated high-yield liquid corporate bond market. The high-yield bond space has been cracked wide open by ETFs, as these products have offered numerous ways for investors to take advantage of this space.
With $13.75 billion in assets under management, HYG’s top holdings include BlackRock Cash Funds Treasury SL Agency Shares with a 1.21% weighting; TransDigm, Inc. 6.25% 15-MAR-2026 at 0.46%; and Mozart Debt Merger Sub, Inc. 3.875% 01-APR-2029 at 0.41%. Its 0.48% expense ratio compares favorably to the 0.46% category.
Closing the last trading session at $76.36, the ETF is currently trading below its 52-week high of $84.96. HYG’s NAV stands at $76.24.
HYG’s POWR Ratings reflect this promising outlook. The ETF has an overall rating of B, which equates to Buy in our proprietary rating system.
HYG has a B grade for Trade and Buy & Hold. Of the 58 ETFs in the B-rated High Yield Bond ETFs group, HYG is ranked #15. One can also access HYG’s Peer grade here.
iShares MSCI Brazil ETF (EWZ)
EWZ offers exposure to Brazilian equities, holding the largest and most liquid companies domiciled in the South American nation. For investors looking for investment in the nation, EWZ is one of many options and offers the broadest exposure to the country’s large-cap segment.
The fund has approximately $5.41 billion in assets under management (AUM). Vale S.A. (VALE3) is the top holding of EWZ, with a 14.91% weighting, followed by Petroleo Brasileiro SA Pfd (PETR4) and Petroleo Brasileiro SA (PETR3), each with 8.42% and 7.26% weightings, respectively.
EWZ has an expense ratio of 0.57% versus the category average of 0.51%. The fund has gained 14.2% year-to-date and 23.1% over the past month.
Closing the last trading session at $32.06, the ETF is currently trading below its 52-week high of $37.82. EWZ’s NAV stands at $32.15.
It is no surprise that EWZ has an overall rating of B, which translates to Buy in our POWR Ratings system. It also has an A for Trade grade and a B grade for Peer.
EWZ is ranked #3 of 19 stocks in the B-rated Latin America ETFs group. In addition, one can access EWZ’s Buy & Hold grade here.
Financial Select Sector SPDR Fund (XLF)
XLF, one of the powerhouse SPDR products, provides exposure to an index that includes companies from the following industries: diversified financial services; insurance; commercial banks; capital markets; real estate investment trusts; thrift & mortgage finance; consumer finance; and real estate management & development.
XLF contains the who’s-who of the financial players in the domestic economy, including JP Morgan, Wells Fargo, and others.
The fund has $32.50 billion in assets under management. Its top holdings are Berkshire Hathaway Inc. Class B (BRK.B) with a 13.91% weighting; JPMorgan Chase & Co. (JPM) at 9.13%; and Bank of America Corp (BAC) at 6.56%. XLF’s 0.92% expense ratio compares to the 0.10% category average.
XLF’s NAV stands at $34.06. The fund has gained 4.5% over the past month.
XLF’s POWR Ratings are consistent with its promising outlook. The ETF has an overall rating of B, which equates to Buy in our proprietary rating system. It also has a B for Trade grade.
In the B-rated Financial Equities ETFs group, it is ranked #8 of 41 ETFs. One can also access XLF’s Buy & Hold and Peer grades here.
HYG shares rose $0.17 (+0.22%) in premarket trading Thursday. Year-to-date, HYG has declined -9.59%, versus a -11.83% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
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