5 ETFs That Make Attractive Investment Choices in Q4

The fourth quarter of 2020 will see a number of key events that will shape the world of equity investing. Data from the late-stage coronavirus vaccine trials, the November 3rd election, and major retail events largely related to the Christmas season, such as Cyber ​​Monday, Black Friday, and Christmas, are some of the events investors will be watching.
Trump's improving health and his return to the White House from Walter Reed National Military Medical Center have helped reassure investors. After the first of the three presidential debates in Cleveland, things appear to be in Joe Biden's favor. According to Smarkets, Biden's chances of winning are now 62%, while Trump's chances of winning are 38%, according to a Yahoo Finance article. Data from Oddschecker in the UK shows that Biden's chances of winning have increased to more than 58%, while Trump's have fallen to around 42%, according to the same Yahoo Finance article.
Analysts expect a better earnings trend in the future as large parts of the US economy have reopened after the pandemic lockdown. Additionally, U.S. corporate earnings forecasts for the third quarter and full year 2020 have been rising since early July, suggesting rising corporate earnings. The super-Dovish Fed is also positive for the equity market over the long term.
With the current scenario in mind, let's discuss ETFs that can be a good addition to the investor portfolio for increasing returns in the fourth quarter of 2020:
VanEck Vectors Video Gaming and eSports ETF ESPO
The video game industry is booming as people increasingly play video games for internal entertainment while maintaining social distancing amid the pandemic. In addition, the video game boom could continue into the post-pandemic period. According to new data from The NPD Group, the video game industry, including packaged media, digital media, consoles and accessories, had strong sales in August, with employees totaling approximately $ 3.33 billion. Notably, the number is up 37% year over year from $ 2.43 billion. In fact, August was the fifth month in a row with an impressive increase in sales over the same period last year.
The Fund seeks to track the price and earnings performance of the MVIS Global Video Gaming and eSports Index before fees and charges as closely as possible in order to capture the overall performance of companies involved in the development of video games, sports and similar topics hardware and software are involved. It holds 25 shares in its basket. Top gaming companies like Nintendo and Activision Blizzard (ATVI) have spots in the top ten positions. With an AUM of $ 519.3 million, the fund calculates an expense ratio of 55 basis points (see: ETF Areas That Stayed Strong In The First 9 Months Of 2020).
iShares Nasdaq Biotechnology ETF IBB
The biotechnology sector has so far kept its promise of return. The S&P Biotechnology Select Industry Index posted a return of 15.7% this year compared to the S&P 500's 3.6% increase. From vaccine-related positive news to advances in developing cell therapies to fight the coronavirus, the sector stopped it all. In particular, the race to introduce vaccines and treat coronaviruses is opening up opportunities and making the biotech sector a potential investment space. Recently, J&J became the fourth company to join vaccine developers in Phase 3 clinical trials. Increasing mergers and acquisitions (M&A) continue to have a positive impact on the biotech market.
This fund seeks exposure to US biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. The fund has an AUM of $ 8.95 billion at an expense ratio of 0.46%. It has a Zacks ETF Rank 2 (Buy) with a high risk outlook (see: Biotech ETFs to Use Trump's COVID-19 Treatment Protocol).
iShares Global Clean Energy ETF ICLN
The space has made headlines these days for a number of reasons. Increasingly, large companies are making or promising investments to achieve the most coveted carbon neutral status. The green energy space was also a hot topic in the current US election campaign. Democratic presidential candidate Biden has been a strong advocate for his clean energy and infrastructure plans. He plans to pump US $ 2 trillion into green energy over a period of four years to build solar modules and charging stations, among other things. In particular, after the first of the three presidential debates, the wind seems to be flowing in Biden's favor.
The Fund seeks to track the investment results of an index composed of global stocks in the clean energy sector. The fund's AUM is $ 1.50 billion and the expense ratio is 0.46%. The fund has a medium risk outlook (see: ETF Areas To Manage The Thematic Investment Trend In The Fourth Quarter).
Strengthen the Online Retail ETF IBUY
Even with the US economy restarting in phases and easing restrictions on social distancing, people are increasingly opting for contactless surgery. Online sales in the US were up 42% year over year in August, according to the latest data from Adobe Analytics. However, the increase was slower than in July, when online sales grew 55% year over year, according to Adobe Analytics data. As of March, Adobe has been reducing the pandemic to an additional $ 107 billion being spent online. Salesforce expects digital revenue to reach $ 221 billion, while total holiday revenue is estimated at $ 730 billion for the November through December holidays, as reported in an article by Digital Commerce 360.
The Fund provides an inexpensive way for investors to own a basket of businesses with significant income from online or virtual retail sales. With an AUM of $ 891.5 million, the fund has an expense ratio of 65 basis points (see: Online Sales Up During the US Holiday Season: 4 ETF Picks).
Vanguard Information Technology ETF VGT
The tech sector has remained relatively strong during the coronavirus crisis. Large tech companies have shown resilience to the pandemic, which in turn has been a major contributor to market momentum this year. The NPD Group's Future of Tech report highlights the critical role technology plays in complying with socially distant norms and predicts a historic year-over-year growth rate of 18% year-over-year 4 increase in technology revenue in the fourth quarter 2020. In addition, e-commerce is expected to account for more than 60% of technology sales over the same period.
The fund aims to replicate the performance of the MSCI US Investable Market Information Technology 25/50 index. It has an AUM of $ 36.27 billion and charges investors an annual fee of 10 basis points. The fund has a Zacks ETF Rank 1 (strong buy) with an outlook for a medium risk (see: Earning ETF areas after the first presidential debate).
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iShares Nasdaq Biotechnology ETF (IBB): ETF Research Reports

iShares Global Clean Energy ETF (ICLN): ETF Research Reports

Amplify Online Retail ETF (IBUY): ETF Research Reports

Vanguard Information Technology ETF (VGT): ETF research reports

VanEck Vectors Video Gaming and eSports ETF (ESPO): ETF Research Reports

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