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Buy on the Dip Prospects: March 4 Edition

Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term ‘buy on the dip’ opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro. 109 ETFs made it to the buy on the dip prospects list. Market indices fell amid escalating US-Iran conflict, hotter-than-expected inflation, AI sector volatility, and tariff uncertainty. Many semiconductor ETFs such as Direxion Daily Semiconductor Bull 3X Shares (SOXL B), VanEck Vectors Semiconductor ETF (SMH B), and iShares PHLX Semiconductor ETF (SOXX B) ranked high on the buy on the dip list. The U.S. semiconductor sector fell last month due to a “buy the rumor, sell the news” reaction to Nvidia’s earnings, sparking fears of an AI bubble, along with investor concerns over the sustainability of high AI capital expenditures. The sell-off was exacerbated by broader market downturns, including tariff concerns, with major players like AMD, Broadcom, and Micron seeing significant drops. Several Japanese funds like Franklin FTSE Japan ETF (FLJP A-), iShares MSCI Japan ETF (EWJ A), and JPMorgan BetaBuilders Japan ETF (BBJP ) also featured on the list. The Japanese market experienced significant pullbacks toward the end of the month due to several converging factors, including geopolitical tensions, monetary policy uncertainty, tech sector weakness, a drop in the leading economic index, and concerns over fiscal sustainability under the current Prime Minister. Emerging market ETFs such as Schwab Emerging Markets Equity ETF (SCHE A-), SPDR Portfolio Emerging Markets ETF (SPEM ), and Vanguard FTSE Emerging Markets ETF (VWO A) were buy on the dip contenders amid rising geopolitical tensions, the AI scare trade, sticky US inflation, and FII outflows. Check out our Emerging Market Equities ETFs’ list here SPDR Portfolio Short Term Treasury ETF (SPSB A-), iShares Long-Term Corporate Bond ETF (IGLB A-), and Vanguard Long-Term Corporate Bond ETF (VCLT A+) were buy on the dip contenders. U.S. Treasury prices fell as investors sold off bonds in response to a spike in oil prices following the conflict in Iran. This sell-off was driven by mounting concerns that rising energy costs would trigger a resurgence of inflation. To compare this month’s list with the one published on February 11th, click here.ETFs to Buy on the DipPlease note that this list is updated on a monthly basis. For more ETF analysis, make sure to sign up for our free ETF newsletter. Disclosure: No positions at time of writing.

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