Advertisement
Advertisement

Best ETFs For September 2021

By:
Jason Bodner
Published: Sep 3, 2021, 13:56 UTC

Outlier stocks tend to crush the market. They are the 4% of stocks accounting for 100% of the stock market’s gains above treasuries for the last century. Hendrik Bessembinder proved it with his research in his paper “Do Stocks Outperform Treasury Bills?”

Best ETFs For September 2021

That’s why I spend my time crafting portfolios chock full of outlier stocks. If you choose right, you’ll have enormous gains on your hands in the years to come.

Now, I pick my ETFs perhaps a bit differently than other people. I can find outlier ETFs by tracking the Big Money. But that alone isn’t enough: when I catalog the components and find outlier stocks underneath… that’s the winning recipe.

First, I looked at all ETFs making Big Money signals by going to MAPsignals.com and scanning the Big Money ETF Buys and Sells chart. I looked for recent days with heavy buying (the bright blue spikes):

Chart, histogram

Description automatically generated

Source: www.mapsignals.com

Once I knew which ETFs Big Money was buying, then I wanted the best opportunities. Remember: ETFs are just baskets of stocks. MAPsignals specializes in scoring more than 6,000 stocks daily. Therefore, if I know which stocks make up the ETFs, I can apply the stock scores to the ETFs. Then I can rank them all strongest to weakest.

So let’s get to the 5 best ETF opportunities for September.

#1 Real Estate Select Sector SPDR Fund (XLRE)

First off, real estate is hot. We can see that Big Money has been plowing money into this ETF over the last year. We saw a few fresh buy signals recently too:

Chart, histogram

Description automatically generated

XLRE holds some awesome stocks and one great example is Prologis, Inc. (PLD). Below we see the Big Money signals for PLD:

Chart, histogram

Description automatically generated

#2 iShares S&P 500 Growth ETF (IVW)

Next, I’m looking for growth. IVW has it and lots of green signals, too:

Chart, histogram

Description automatically generated

One great stock that IVW holds is Microsoft Corp. (MSFT). It has awesome fundamentals and some recent big money buying:

Chart, histogram

Description automatically generated

#3 Global X Cloud Computing ETF (CLOU)

The cloud is a big area for growth this year. CLOU holds some phenomenal stocks. It’s also collecting lots of green:

Chart, histogram

Description automatically generated

One big winner that caught my eye inside of CLOU is Netflix, Inc. (NFLX). It’s starting to get its mojo back:

Chart, histogram

Description automatically generated

#4 ARK Innovation ETF (ARKK)

Cathie Woods, the star of Wall Street last year has hit some head winds. The ARKK saw huge buying through February then hit a wall. But the pullback, I believe, is an opportunity because it holds some terrific companies:

Chart, histogram

Description automatically generated

It holds a monster growth stock, Square, Inc. (SQ). Big Money has been consistent for years:

Chart, histogram

Description automatically generated

#5 iShares NASDAQ Biotechnology ETF (IBB)

The biotech space has been booming. Big Money has been flowing into IBB:

Chart, histogram

Description automatically generated

It holds some great stocks too. One that I have my eye on is Regeneron Pharmaceuticals, Inc. (REGN), which has benefited from the COVID pandemic:

Chart, histogram

Description automatically generated

Here’s a reminder for what to look for in the charts above:

  • When Big Money buying pours in, stocks tend to go up
  • Repeated buying usually means outsized gains

Let’s summarize here:

Graphical user interface, text, application

Description automatically generated

IVW, XLRE, & CLOU rank high. ARKK and IBB however, rank lower on our list, mainly due to weaker technicals. That’s why I think these weaker ETFs represent great potential bargains.

The Bottom Line

IVW, XLRE, CLOU, ARKK, and IBB are my top ETFs for September 2021. Growth, REITs, & cloud stocks have performed well lately. My bet is they continue.

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

Disclosure: the author holds no positions in XLRE, IVW, CLOU, ARKK, IBB, PLD, SQ, or NFLX, but holds long positions in MSFT & REGN in managed accounts at the time of publication.

Investment Research Disclaimer

https://mapsignals.com/contact/

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Jason Bodnercontributor

Jason is a seasoned equity investor and quantitative analyst. He is currently co-founder of research and analytics firm, MAPsignals.com, focusing on identifying outlier stocks by following the Big Money.

Did you find this article useful?

Advertisement