ETFs (exchange-traded funds) are a cost-effective way to diversify a portfolio due to their low expense ratios compared to traditional mutual funds. Further, the ETFs trade on stock exchanges, providing liquidity and flexibility for investors. Today, we have shortlisted two ETFs – iShares Emerging Markets Infrastructure ETF (EMIF) and AdvisorShares Psychedelics ETF (PSIL) – with more than 20% upside potential projected by analysts over the next twelve months.
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Let’s take a closer look at these two ETFs.
iShares Emerging Markets Infrastructure ETF (EMIF)
The EMIF ETF focuses on companies in emerging markets which often experience rapid economic growth and infrastructure development. The ETF seeks to replicate the S&P Emerging Markets Infrastructure Index, which tracks the performance of 30 of the largest stocks in the emerging markets infrastructure industry.
EMIF has $8.75 million in assets under management (AUM), with the top 10 holdings contributing 59.14% of the portfolio. Importantly, it has a low expense ratio of 0.6%. The EMIF ETF has declined 2.97% in the past six months.
Overall, the EMIF ETF has a Hold consensus rating. Of the 56 stocks held, 36 have Buys and 20 have a Hold rating. At $27.38, the average EMIF ETF price target implies a 26.79% upside potential.
AdvisorShares Psychedelics ETF (PSIL)
The PSIL ETF invests in biotechnology, pharmaceutical, and life sciences companies that are involved in the development and production of psychedelic drugs. This emerging field has gained significant attention due to its potential to treat mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD).
The PSIL ETF has $7.03 million in AUM and an expense ratio of 0.99%. Its top 10 holdings contribute 71.33% of the portfolio. Over the past six months, PSIL ETF has generated a return of 1.69%.
On TipRanks, PSIL has a Moderate Buy consensus rating based on 11 Buys and 13 Holds assigned in the last three months. At $53.77, the average PSIL ETF price target implies an impressive 346.49% upside potential.
Concluding Thoughts
ETFs are a low-cost, diversified, and transparent way to participate in the market. Investors looking for potential ETF recommendations could consider EMIF and PSIL due to the upside potential expected by analysts.
