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.
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.
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…
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