3 ETFs to Invest During the Profitable Market Drops - iShares

In recent days, the Dow Jones Industrial Average, S&P 500 and the technology-heavy NASDAQ 100 index have reached new highs. As a result, many stocks, as well as exchange-traded funds (ETFs), gained value in 2021. In this series, we'll be reviewing 3 ETFs to invest with strong returns that are likely to make short-term profits during the profitable market drops, which could offer a better entry point for interested investors.

3.iShares U.S Financial Services ETF

• Current Price: $192.70
• 52-Week Range: $116.07– $192.08
• Dividend Yield: 1.43%
• Expense Ratio: 0.41%

The iShares U.S. Financial Services ETF (NYSE:IYG) provides access to the U.S. financial sector. Companies in the fund consists of investment and commercial banks, asset management firms, credit card companies, as well as securities exchanges. IYG, which has 105 holdings, is based on the Dow Jones U.S. Financial Services Index. The fund started trading in June 2000, and net assets stand at about $2.1 billion. In terms of sectors, we see banks (41.10%) followed by diversified financials (40.67%) and software and services (17.63%). The top 10 holdings, including JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), Mastercard (NYSE:MA), Wells Fargo (NYSE:WFC) and BlackRock (NYSE:BLK), makes up about 56% of the funds net assets. The fund has yielded more than 52% in the past year and reached a record high in recently. Since the most recent earnings results last month, many of these shares have staged strong performances. Now, trailing P/E and P/B ratios of 24.89x and 2.21x show a stretched valuation level. Therefore, short-term profit could be possible soon. A potential decline toward $180-$185 would offer a great entry point.   Source: Investing.com