PPH - The Top 3 ETFs to Buy in March 2024
2024-03-07 13:43:42 ET
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Top ETFs to buy offer a smart solution for those looking to diversify their portfolios without the hassle. In the investment realm, diversification remains a key aspect of a sound investment strategy, but achieving it may feel like a Herculean task. Savvy investors may struggle with stock research for dozens, if not hundreds, in building a diversified portfolio. That’s where ETFs come into play, simplifying the diversification process by covering various asset classes into a single, tradable product on the stock exchange.
Moreover, ETFs provide a lens through which investors can assess the pulse of indexes and industries, making informed decisions with greater confidence. Therefore, embracing ETFs in your investment portfolio could be the key to balancing risk and opportunity in 2024’s dynamic market.
Top ETFs to Buy: Global X Artificial Intelligence & Technology ETF (AIQ)
The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ ), stands out as one of the top AI-focused ETFs, boasting net assets of $1.36 billion. Tracking the Indxx Artificial Intelligence & Big Data Index , the AIQ ETF invests in a portfolio of AI businesses harnessing the power of AI for big data analytics. Amidst the explosive growth in the sector, AIQ has surged by an impressive 45% over the past year, significantly outperforming the S&P 500’s 26% gain.
That remarkable performance underscores the ETF’s strategic positioning within the booming AI industry. It currently has 90 holdings, including some of the biggest tech giants of our time in Nvidia (NASDAQ: NVDA ) and Meta Platforms (NASDAQ: META ). Moreover, the ETF’s success story is a testament to the growing potential of AI and big data, heralding a promising avenue for those looking to diversify with tremendous upside ahead.
VanEck Pharmaceutical ETF (PPH)
The VanEck Pharmaceutical ETF (NASDAQ: PPH ) is a fund dedicated to drug manufacturers and has been ticking in the green this year. That surge is primarily attributable to its sizeable investments in Eli Lilly (NYSE: LLY ) and Novo Nordisk (NYSE: NVO ), which comprise roughly 11% and 8% of its portfolio, respectively. Eli Lilly and Novo Nordisk’s remarkable breakthroughs in their respective weight-loss treatments have seen their stocks rally impressively.
Moreover, the PPH ETF stands out for its remarkable cost efficiency and trading effectiveness, boasting an expense ratio of just 0.36%, significantly lower than the ETF median. Furthermore, a dividend yield of 1.91% and dividend growth of 41.45% over the past year, showcase its stellar dividend profile. Consequently, these financial metrics underline PPH’s attractiveness to investors seeking efficient and profitable ETF options in the pharma space. They also reflect the fund’s robust performance driven by its key holdings in innovative healthcare companies.
Pacer US Cash Cows 100 ETF (COWZ)
The Pacer US Cash Cows 100 ETF (BATS: COWZ ) stands out in the crowded ETF space with its unique focus on free cash flows. Eschewing the typical market cap-based metrics, COWS stock opts for a more holistic measure: free cash flow over enterprise value. The calculation accounts for market cap, debt and cash, painting a more realistic picture of a company’s intrinsic value.
With a diversification strategy at its core, COWZ’s largest sector allocation is energy, comprising 27.50% of its portfolio. Major positions in consumer cyclical and healthcare complement this. By covering a spectrum that extends from basic materials to communication and maintaining a cash & equivalents buffer, COWZ dampens sector-specific volatilities. That eclectic mix demonstrates COWZ’s adaptability but reinforces its potential as a hedge against market unpredictability. Moreover, it yields an enticing 1.8%, with seven consecutive years of dividend payouts.
On the date of publication, Muslim Farooque did not hold (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.
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