3 Buy-Rated ETFs to Complete Your Portfolio This Summer

The stock market experienced massive volatility in the first half of the year due to various macroeconomic and geopolitical concerns. However, better than expected corporate earnings and a slight decline in inflation have led the market to rebound since July.

As inflation remains elevated, many analysts expect the Fed to maintain its hawkish stance to bring inflation back to its target level. A robust labor market should encourage the Fed to continue tightening its policy. These factors could keep the market under pressure in the short term.

In such uncertain market conditions, investing in resilient ETFs iShares iBoxx $ High Yield Corporate Bond ETF (HYG), iShares MSCI Brazil ETF (EWZ) and the selected financial sector SPDR fund (XLF) might be wise. These ETFs are rated Buy in Our Own POWR Rankings system.

iShares iBoxx $ High Yield Corporate Bond ETF (HYG)

This ETF is designed to replicate a benchmark that broadly represents the market for liquid, high-yielding corporate bonds denominated in US dollars. The high yield bond space has been opened wide by ETFs, as these products have offered many ways for investors to take advantage of this space.

With $13.75 billion in assets under management, HYG’s top holdings include shares of agency BlackRock Cash Funds Treasury SL with a weighting of 1.21%; 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 expense ratio of 0.48% compares favorably to the category’s 0.46%.

Closing the last trading session at $76.36, the ETF is currently trading below its 52-week high of $84.96. HYG NAV amounts to $76.24.

HYG POWR ratings reflect this promising outlook. The ETF has an overall rating of B, which is equivalent to Buy in our proprietary rating system.

HYG has a B rating for trade and buy and hold. Of the 58 B-rated ETFs High Yield Bond ETFs group, HYG is ranked #15. One can also access the Peer grade of HYG here.

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 to invest in the country, 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 SA (VALE3) is EWZ’s largest holding, with a weighting of 14.91%, followed by Petroleo Brasileiro SA Pfd (PETR4) and Petroleo Brasileiro SA (PETR3), each with a weighting of 8.42% and 7.26%, respectively.

EWZ has an expense ratio of 0.57% versus a category average of 0.51%. The fund has gained 14.2% since the start of the year and 23.1% over the past month.

Closing the last trading session at $32.06, the ETF is currently trading below its 52-week high of $37.82. The net asset value of EWZ is $32.15.

It’s no surprise that EWZ has an overall rating of B, which translates to Buy in our POWR rating system. It also has an A rating for trade and a B rating for peers.

EWZ is ranked #3 out of 19 stocks in the B rating Latin American ETFs band. Additionally, one can access EWZ’s Buy & Hold rating here.

Selected Financial Sector SPDR Funds (XLF)

XLF, one of SPDR’s flagship products, provides exposure to an index that includes companies from the following sectors: diversified financial services; Insurance; commercial banks; capital markets; real estate investment trusts; savings and mortgage financing; Consumer credit; and real estate management and development.

XLF contains the who’s-who of financial players in the national economy, including JP Morgan, Wells Fargo and others.

The fund has $32.50 billion in assets under management. Its top holdings are Berkshire Hathaway Inc. Class B (BRK.B) with a weighting of 13.91%; JPMorgan Chase & Co. (JPM) to 9.13%; and Bank of America Corp (BAC) to 6.56%. XLF’s expense ratio of 0.92% compares to the category average of 0.10%.

The net asset value of XLF is $34.06. The fund has gained 4.5% over the past month.

XLF’s POWR ratings are consistent with its promising outlook. The ETF has an overall rating of B, which is equivalent to Buy in our proprietary rating system. It also has a B for commerce.

In category B Financial Equity ETFs group, it is ranked #8 out of 41 ETFs. One can also access the Buy & Hold and Peer grades of XLF here.

HYG shares were up $0.17 (+0.22%) in premarket trading on Thursday. Year-to-date, HYG is down -9.59%, compared to a -11.83% rise in the benchmark S&P 500 over the same period.

About the Author: Spandan Khandelwal

Spandan’s is a financial journalist and investment analyst specializing in the stock market. Through its ability to interpret financial data, it aims to help investors assess a company’s fundamentals before investing. After…

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