ETFs (exchange-traded funds) offer a diversified way to invest in several securities, such as stocks, bonds, or commodities. They often have lower expense ratios compared to traditional mutual funds, making them a cost-effective way to invest. Today, we have shortlisted two ETFs – Invesco S&P/TSX Composite ESG Tilt Index ETF (TSE:ICTE) and IA Clarington Loomis Global Equity Opportunities Fund Series ETF (TSE:IGEO) – with more than 10% upside potential projected by analysts over the next twelve months.
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Let’s take a deeper look at these two ETFs.
Invesco S&P/TSX Composite ESG Tilt Index ETF Trust Units
The ICTE ETF aims for long-term capital appreciation and tracks the S&P/TSX Composite ESG Tilt index. This index measures the performance of Canadian companies that meet certain environmental, social, and governance (ESG) criteria.
The ETF has C$1.16 million in assets under management (AUM), with the top 10 holdings contributing 44.5% of the portfolio. Importantly, the ETF has a low expense ratio of 0.18%. Also, the ICTE ETF has returned 24% so far in 2024.
Overall, the ICTE ETF has a Moderate Buy consensus rating. Of the 198 stocks held, 162 have Buys, 35 have a Hold rating, and one has a Sell rating. At C$25.66, the average ICTE ETF price target implies a 10.85% upside potential.
IA Clarington Loomis Global Equity Opportunities Fund Series ETF Trust Units
The IGEO ETF seeks to provide long-term capital appreciation. It invests in a diversified portfolio of global equities, reducing exposure to specific country or sector risks. It must be noted that the fund can invest in a variety of asset classes, including stocks, bonds, and other securities, to generate returns.
The top 10 holdings of the IGEO ETF account for 41.5% of its total portfolio. Over the past three months, IGEO ETF has generated a return of 30.13%.
On TipRanks, IGEO has a Hold consensus rating based on 27 Buys and 10 Holds assigned in the last three months. At C$16.55, the average IGEO ETF price target implies 11.2% 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 IGEO and ICTE due to the upside potential expected by analysts.
