3 Best ETFs to Invest In, According to AI Analyst, 03/10/2026

Exchange-traded funds (ETFs) remain a core vehicle for chasing market returns, even as President Donald Trump’s administration continues to double down on the U.S. war with Iran.

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To provide a guide for investors, TipRanks’ AI analyst spotlights three Outperform‑rated ETFs to watch: the Dimensional U.S. Core Equity 2 ETF (DFAC), the Avantis U.S. Equity ETF AVUS +0.14% ▲ , and the Health Care Select Sector SPDR Fund XLV -0.38% ▼ .

Each of these ETFs projects a return of at least 12%. The snapshot below highlights what makes each fund stand out from the crowd.

2. The Dimensional U.S. Core Equity 2 ETF (DFAC) — This fund seeks to provide investors with capital appreciation through broad exposure to the U.S. stock market. As a result, the ETF invests in both fast-growing tech leaders and stable value stocks, that is, companies whose businesses are considered underpriced by the market in comparison with their financials. The ETF AI analyst currently has a $46 price target on DFAC, suggesting about 15% growth potential. The fund’s strength comes from the contributions of key portfolio holdings such as Microsoft MSFT -1.29% ▼ , Apple AAPL +0.55% ▲ , and Alphabet GOOGL +0.42% ▲ .

3. The Avantis U.S. Equity ETF AVUS +0.14% ▲  — Like DFAC, this ETF also targets broad exposure to the U.S. stock market. The fund achieves this by focusing on both established names and smaller but fast-growing American businesses. The ETF AI analyst currently has a $131 price target on AVUS, suggesting about 15% upside. The fund’s current Outperform rating largely reflects the strong performance of key holdings such as Microsoft, Apple, and Alphabet GOOGL +0.42% ▲ .

4. The Health Care Select Sector SPDR Fund XLV -0.38% ▼ — As the name suggests, this ETF focuses on the healthcare industry, particularly on pharmaceutical and biotech companies with an active presence in the U.S. However, the fund leans heavily on a handful of heavyweight sector leaders. The ETF AI analyst currently has a price target of $172 on XLV, indicating approximately 12% upside. The fund’s current Outperform rating is thanks to portfolio leaders such as Merck MRK +0.34% ▲ , Johnson & Johnson JNJ +0.65% ▲ , and Gilead Sciences GILD +1.73% ▲ .

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