Whether it’s for a short-term ETF play for quick gain or to shore up portfolios with long-term buy-and-hold positions, investors want to know they’re getting in on the right price. While it’s nearly impossible to time the market, here are three potential ETFs that could be flashing buy signals.
First up is the VanEck Vectors® Real Asset Allocation ETF (RAAX), which is an actively managed fund. In pursuing long-term total return, the Fund seeks to maximize real returns while seeking to reduce downside risk during sustained market declines by allocating primarily to exchange-traded products that provide exposure to real assets, which include commodities, real estate, natural resources, and infrastructure.
The Fund seeks to reduce downside risk by using a rules-based approach to determine when to allocate a portion of the Fund’s assets to cash and cash equivalents. RAAX is above its 50- and 200-day moving average and its relative strength index (RSI) is just above oversold levels in its year-to-date chart.
Another fund to consider is a play on gold with the VanEck Vectors Gold Miners ETF (GDX). As per the fund description, GDX seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®.
The fund normally invests at least 80% of its total assets in common stocks and depositary receipts of companies involved in the gold mining industry. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.
GDX’s YTD chart shows the fund could be trending upwards past its 50-day moving average as it has meandered along its 200-day moving average the past month after retracing to its pre-pandemic level and soaring above that. Its RSI sits right in the middle of overbought and oversold, so this is one to watch to see if it can stay above its support level of about $36.33 — its 200-day average.
Lastly, there’s the VanEck Vectors Morningstar Durable Dividend ETF (DURA). The fund seeks to replicate the price and yield performance of the Morningstar® US Dividend Valuation IndexSM, which is comprised of securities of companies with a high dividend yield, strong financial health and an attractive uncertainty-adjusted valuation.
DURA is up above its 50- and 200-day MAs and also sits in the middle of overbought and oversold territories with its RSI. It’s been on a steady uptrend since the pandemic sell-offs in March and has yet to retrace back to its pre-pandemic levels.
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