Financial Advisors Recommend Three Underrated ETFs for Diversification

Financial advisors are highlighting three underrated exchange-traded funds (ETFs) to help investors navigate a US market that now hosts over 5,100 ETFs. According to data from JPMorgan, the number of available ETFs has officially surpassed the number of individual stocks trading in the United States.

Marcus Sturdivant, founder of The Wall Street South Journal newsletter, recommends the iShares Expanded Tech-Software Sector ETF (IGV). He bases this suggestion on a market rotation from AI hardware toward software and the critical necessity of cybersecurity.

Other specialists suggest different paths for growth and stability. Chris Chen of Insight Financial Strategists recommends the Pacer Nasdaq International Patent Leaders ETF (PATN) for its focus on international growth stocks with significant intellectual property. Meanwhile, Melissa Cox of Future Focused Wealth advocates for the Vanguard International High Dividend Yield Index Fund ETF (VYMI) to provide steady income and diversification for those seeking to move away from AI-concentrated portfolios.