In the July policy meeting, the Federal Reserve raised its benchmark interest rate by another 0.75 percentage point to tame the multi-decade high inflation. Moreover, the U.S. economy contracted for two consecutive quarters, with GDP declining 0.9% in the second quarter, fueling recession concerns.
Mayor Eric Adams said that the U.S. has entered into a recession and “Wall Street is collapsing,” contrary to President Biden’s claims that the nation is doing all right. However, better-than-expected earnings reports from many tech giants have kept investors’ sentiment positive lately. The tech-heavy Nasdaq Composite added 1.9% in the last trading session to close its best month since 2020.
So, we think it could be wise to invest in tech-focused ETFs ProShares S&P Technology Dividend Aristocrats ETF (TDV) and Innovator Nasdaq-100 Power Buffer ETF – October (NOCT) to capitalize on the current market trends.
Non-diversified fund TDV seeks investment results that track the performance of the S&P Technology Dividend Aristocrats Index. The index targets companies from the U.S. technology sector.
With $111.30 million in assets under management (AUM), TDV’s top holdings include Avnet, Inc. (AVT) with a 3.06% weighting; Littelfuse, Inc. (LFUS) at 2.98%; and Badger Meter, Inc. (BMI) at 2.75%. Over the past month, the ETF’s fund flows came in at $1.11 million. In addition, its 0.46% expense ratio compares favorably to the 0.55% category average.
Closing the last trading session at $60.01, the ETF is currently trading below its 52-week high of $67.42. The fund has gained 11.5% over the past month.
TDV’s POWR Ratings reflect this promising outlook. The ETF has an overall rating of B, which equates to Buy in our proprietary rating system.
TDV has an A grade for Peer and a B for Buy & Hold and Trade. Of the 118 ETFs in the Technology Equities ETFs group, TDV is ranked #3.
Innovator Nasdaq-100 Power Buffer ETF – October (NOCT)
NOCT seeks to provide returns that match those of the NASDAQ-100 Price Index while providing a buffer against the first 15% of NASDAQ-100 Price Index losses over a certain holding period. The actively-managed non-diversified fund invests at least 80% of its net assets in FLexible Exchange Options.
The fund has approximately $58.20 million AUM. Also…
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