The market has bounced back after a rocky start to the year, but uncertainty and volatility still weigh on sentiment. First-quarter corporate earnings are expected to fall once again, potentially marking the fourth straight quarterly decline.
Amid the uncertainty, there are still investors who are hungry for a good opportunity. These 3 ETFs are low-risk and broad, and have been performing exceptionally well.
1. Wisdom Tree MidCap Dividend Fund (DON)
ETFs with a heavy focus on dividends are doing especially well right now, mainly because the demand for income is high as the market remains unstable. Dividend-paying securities offer consistent income when equity market returns are risky.
DON follows the WisdomTree MidCap Dividend Index, and offers exposure to the mid-cap segment with 402 stocks. Each component holds no more than 1.8% of assets. The fund manages assets totaling $1.6 billion, and its trade volume is moderate at 80,000 shares per day on average. Expense ratio is at 0.38%. The fund offers a broad spread, with consumer discretionary, financials, industrials and utilities. So far this year, DON has generated an 11.1% return.
2. Vanguard Mid-Cap Value ETF (VOE)
VOE tracks the CRSP US Mid Cap Value Index, and charges investors 9 bps annually. The fund holds 208 stocks, with each component holding no more than 1.3% share. The spread includes financials, industrials, consumer goods, utilities and consumer services. VOE has $4.5 billion in assets under management, with a daily volume of 302,000 shares on average.
Year-to-date, this ETF has added 0.2%.
3. First Trust Small Cap Value AlphaDEX Fund (FYT)
FYT tracks the NASDAQ AlphaDEX Small Cap Value Index. Stocks are picked from the NASDAQ US 700 Small Cap Value Index using the AlphaDEX methodology, and ranks the stocks based on growth and value. The fund holds 262 securities. None hold more than 0.74% of assets. Sectors are broad and include financials, consumer discretionary, industrials and information technology.
With an average daily volume of 20,000 shares and just $44.8 million in assets under management, investors often overlook this ETF. So far this year, the fund has gained 0.5%, and charges fees of 70 bps per year.
Anthony Young
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