Best ETFs For November 2021

October was a great month for markets. Given the up-and-down nature of this year, some people may think it’s time for a downward turn. I can’t predict what will happen tomorrow, much less a month from now or beyond (nobody can). But when thinking about the market going forward and reviewing the Big Money data, I like what I see.

Going to MAPsignals.com, we can scan Big Money ETF Buys and Sells. Big selling (red bars) led markets lower followed by huge buying (blue bars) lifting markets. This year has been wild, as you can see below. But we’re in a lift now, with minimal selling.

Source: www.mapsignals.com

Long-term investors should look for ETFs (and their stocks), with great setups for the months ahead.

Remember: ETFs are just baskets of stocks, so we need to look at them in detail. MAPsignals specializes in scoring more than 6,000 stocks daily. If I know which stocks compose the ETFs, I can apply stock scores to the ETFs. Then I can rank them all strongest to weakest.

Let’s get to the 5 best ETF opportunities for November.

#1 Technology Select Sector SPDR Fund (XLK)

Technology stocks are hot. We see Big Money has been buying XLK this year, especially of late. The fresh buy signals are possibly a play to capitalize on the surging semiconductor sector:

XLK holds solid stocks; one example is NVIDIA (NVDA). Here are Big Money signals for NVDA:

#2 iShares PHLX Semiconductor ETF (SOXX)

Speaking of the semiconductor sector, it’s been on fire lately. An ETF play on the sector at large is SOXX, which contains THE JUICE – all the hottest names in semis. Big Money is there too, as you can see by all the green lines below:

One great stock SOXX holds is Advanced Micro Devices, Inc. (AMD). It’s a long-time outlier with awesome fundamentals. Being around for multiple decades, the company has seen its share price fluctuate. But, as the multi-year chart below shows, when red appears on great stocks, it’s usually an opportunity:

#3 SPDR Portfolio S&P 500 Growth ETF (SPYG)

The SPYG is a large-cap, growth-oriented ETF that holds some of the biggest names in the economy today. After a couple pullbacks over the past year, it’s rebounded substantially:

One big winner within SPYG is Amazon.com, Inc. (AMZN). It’s an outlier stock:

#4 Vanguard Small-Cap ETF (VB)

The first three ETFs were from the strong part of my ranked list. Now we look for bargains by identifying weaker ETFs holding stocks with strong fundamentals. Small-cap stocks were the stars leading the race as our economy began its recovery. While the momentum has dulled, VB shows we could be seeing a breakout:

This ETF holds great stocks. One such winner is Entegris, Inc. (ENTG). Big Money loves it. The multi-year chart says don’t bet against it:

#5 iShares MSCI USA Value Factor ETF (VLUE)

As happens with stocks, value stocks were darlings not too long ago, but now aren’t as much in favor. These are the situations that seasoned investors call opportunities. Some value stocks are moving the needle, making an ETF like VLUE a potentially nice play for a long-term investment:

A great stock in VLUE that’s moving the needle is Ford Motor Company (F). Its push to become a full-on electric vehicle powerhouse is on. Big Money likes F, which helps make me a believer that stocks like these will recover and thrive:

Here’s a Big Money recap:

• When Big Money buying pours in, stocks tend to go up
• Red selling on great quality can be a great opportunity
• Repeated buying usually means outsized gains

Let’s summarize here:

XLK, SOXX, and SPYG rank high. VB and VLUE however, rank lower on our list, due to weaker technicals. That’s why I think these weaker ETFs represent great potential bargains.

The Bottom Line

XLK, SOXX, SPYG, VB, and VLUE are my top ETFs for November 2021. October proved to be an outstanding month. But the remainder of 2021 can bring THE JUICE too (historically that’s been the case). Remember, volatility hits all stocks eventually. But, time helps them recover and thrive.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds no positions in XLK, SOXX, SPYG, VB, VLUE, NVDA, AMD, AMZN, or F but holds long positions in ENTG in managed accounts at the time of publication.

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