This video presents an investment strategy for identifying undervalued income ETFs during periods of market greed, using Meta (METW), Uber, and NukeX as examples. The speaker demonstrates how to evaluate income ETFs by analyzing forward PE ratios, analyst consensus prices, and distribution rates, while also discussing growth stocks like SoFi, Vertiv, and Vistra as portfolio diversification tools to offset potential NAV erosion from income ETFs.
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Deep Dive
Best Income ETF opportunities right now...and what I'm buying!Added:
Hey guys, welcome to new video. So, a pretty good day in the market yesterday.
The NASDAQ was up 1.6% the S&P 500 up just over a percent and overall we're again pretty much at all-time highs for the market. But, there are still some opportunities. It seems at least from my research that AI and semiconductors and chips are kind of pushing this rally and they're doing really well. Stocks like AMD are absolutely crushing it. But, there are some stocks that are doing really bad like software the software sector for example and other stocks that are not at potentially around 52-week lows. So, there's still a lot of opportunity opportunity in this market.
And I've been making some moves, made a few buys.
Um, and that's what I'm going to talk about today. What I'm looking at, what's in my watch list, what are my three favorite income ETFs at the moment that I'm watching that I'm also buying and what I've been buying this week. So, that's what I'll talk to you about today. Of course, this is not financial advice. This channel is purely based on my thoughts as I navigate my own personal investment journey. Please, please, please always do your own research. Now, if we look at the fear and greed index though, we are still in greed and as you know if you watch my previous videos I primarily like to do all my buying in fear and extreme fear because then there's a lot more potential for upside appreciation especially on some of these volatile income ETFs. So, I don't tend to like to buy in greed and extreme greed. But, it seems like the market's kind of bit two-fold at the moment. We've got some stocks like I said the AI sector and and chips doing really well and some sectors just doing awfully like software is getting absolutely obliterated right now. It's had a little bit of a recovery, but there are still so many opportunities in that and in certain other areas as well. So, that's what I'll talk about. So, I am doing a little buying even though we're in greed and normally I like to kind of build up my cash position when we're in kind of greed and extreme greed, I'm not buying at all. I'm selling single stock ETFs as I've talked about in my fear and yield framework, which you can find in previous videos.
So, what happened yesterday? Um this is a map of essentially everything and pretty much green across the board.
Everything was up cuz obviously the Nasdaq, especially tech, cuz Nasdaq was up 1.6%. Defensive more defensive consumables down um quite a bit uh in the red there, a bit of energy or energy and oil. Oil went down a bit, but mostly green in kind of a lot of the big tech stocks and the income ETF underlings that are more popular than anything. Of course, after hours we had Nvidia announce earnings and as is always the case with Nvidia, they smashed their earnings. Um but, the market didn't seem to appreciate it too much and didn't act too favorably. So, uh I think the EPS though was an adjusted EPS of $1.87 versus the expected of $1.76 and revenue came in at 81.62 billion above 78.8 billion, which was the estimate. So, 3 billion or almost 3 billion more and a much better earnings per share as well.
But, the stock sank after the analyst call putting it on track for a fourth straight post-earnings slide. So, even though it beat earnings pretty well, um it just after earnings uh Nvidia share price is down um and actually looks like the Nasdaq futures are down for today going into today's session whenever you're watching this video. So, um a good day yesterday, but bit volatile at the moment and not looking good so good for the futures right now.
Now, I'll look take you now to my watchlist and buy list of what I've been doing this week because as I said even though some ETFs and stocks have been doing really well, there are still a lot of opportunities out there. So, here I have my income ETF kind of watch list and buy list that I'm either keeping an eye on or I'm slowly dipping my toes in and buying at the moment.
These are my top three.
METW, that's Meta, that's a Roundhill Weekly Pay ETF. Uh UBER, that's the Uber Roundhill Pay ETF and NukeX, that is the Nuclear Income ETF from the X-Funds guys. Now, Meta I think is probably the most obvious buy in the market right now. You can see that we're down here.
Um Meta is kind of getting crushed because of its uh its expenditure. It's spending billions of dollars on uh CapEx um without much justification and so the market doesn't like it and it's suffering because of that. Um but I think it's extremely undervalued. It's got a um forward PE of around 19 at the moment I believe and I think anything under 28 for METW is a buy. If we look at the analyst forecast on um TradingView. So, this is all the analyst um ratings for Meta, so the underlying stock of METW and you can see that we're currently at a share price of $605 but the average consensus among all these analysts and there's a lot of them, 71 analysts, that it should be at $819.
So, if you think the average share price or the fair value share price of Meta is around $800 and you can get it for $605, that's a great deal in my opinion. This is the most obvious buy in the market for me at the moment. I've been DCAing into METW around this. I literally just bought some yesterday. It dipped down to 2730.
We go to like a 5-day. It's been a Yeah, 2730. I literally caught it down here, which was uh pretty good. Pretty happy with that.
Can't lie. Um and so I'm just building up my position. My My average cost price is still around here, 32. But as I DCA around here, it's just bringing my average cost price cuz I believe it will eventually go back to that kind of $800 um share price mark. So, that'll probably come up to around I don't know, somewhere back up here, I'd imagine. Um not quite sure. But uh yeah, Meta, probably the most obvious buy in the market, and I'm continuing to buy it when it kind of goes down under $20.
Uber Uber. Now, not so popular, but the more research I do on Uber, um the kind of more bullish I am on it. And I just think again, it's one of those victims of AI and autonomous driving and autonomous cars are going to crush Uber.
But it's really it's a cash cow. It's a network. It makes so much money. It had a good earnings. Um and actually, if you ask all of the chatbots, so I asked uh ChatGPT, I asked Gemini, I asked Claude, like all of them, uh what are your top five buys in the market right now? And I think three out of four said Uber, like of any stock. And it just kind of reinforced my thesis that Uber is very undervalued right now. Um and it's a good buy. So, I've been buying anything under about 31. Um but again, I bought yesterday in yesterday's session at 29 something. Um so again, if you go to if we look at Uber on here, let's see what the analysts are saying cuz it is one of my top three to buy at the moment. Let's go forecast for Uber.
And we've will see that it is currently trading at 7460, which is about the minimum that the analysts are saying.
It's a strong buy. 48 analysts saying strong buy, three saying buy, five saying hold, and only one saying strong sell. It's got an average uh share price or expected share price of $104. That's 40% upside from here. And a maximum of 150 is 100%, so it's a strong buy in my opinion. It's one of my top three.
These are my top two, Meta and Uber at the moment. Those are the ones I'm DCA-ing into the most at the moment. And then the other one is Nuke X. And the only reason I've gotten into Nuke X is because I hold it already um hold it as a position around this mark, actually, 42, which is around here. Um but it was doing really well, and I was up like 12%, making good distributions on it. Um and then it just crashed a few days ago, whenever it was. And it came down to 40, 30, 40. I bought it just just under $41. Dip my toes in again here. And I'm just very bullish on this Nuke X ETF from X Funds, guys. It's if you think about the AI um space and what's going to be the next bottleneck in terms of infrastructure, power. Power is going to be one of those things that it is the thing that they can't get enough of, uh power, energy, infrastructure, um and nuclear, uranium. And if you look at this ETF, you look at the holdings of Nuke X from these X Funds, guys, they know what they're doing. They It's more of a an AI infrastructure nuclear uranium ETF than it is pure nuclear. And I think it's going to do very well. I'm bullish on it. So, I've got quite a bit of convic- Obviously, it's riskier than your Uber and your Meta. So, these these are my main two that I'm buying into, but whenever it dips under 41, I'm buying cuz I've got quite a bit of conviction in its holdings and in this ETF in general. I think the X Funds, guys, do really good job. I don't think they have huge distribution rates. You know, it targets around I I Nuke X is lower than even the rest of them. You know, Block pays a 36% distribution rate. Most of them pay around there, but Newegg's I think is only um giving around a 15 to 16% distribution rate at the moment. So, there's a lot of upside to that. If you don't like low distribution rates, maybe it's not for you, but for me, I'm very bullish on it. So, that's one I'm buying. Who? I mean, it's been tanking, hasn't it? It has been Robinhood is down a lot. I remember when, you know, I was buying around here in all these little dips um and it went up and we were like, "We're winning." And who was paying these huge distributions? We're like, "We're making so much money." And now look at us.
We're crying in our sleep. No.
Um but it's just it's just cyclical, like this um kind of digital finance Look Look at uh companies like SoFi, yeah, Robinhood, um what else? Like, there's a few of like anything Obviously, Robinhood is is quite crypto sensitive as well. So, obviously, Bitcoin's down in a bear market. It can't seem to stay above 80K at the moment, but as soon as Bitcoin comes out of its bear market, I think, you know, Robinhood's going to shoot back up. If we look at um let's go to Robinhood on here and see what the analysts are saying. So, Hood, uh let's go to forecast.
I just think it's a great price right now. So, it's just above the minimum um analyst rating at $75.
Uh most analysts have it at about $100 as kind of fair value average share price. And then max of $155, which again is a 104% upside from here.
Uh most people saying buy, so strong buy, 18 people, four saying buy, and only a couple of sells. It's a little bit more risky, more volatile than of of course your your Metas or even your Ubers, but I think there's a lot I think it's probably got the most upside opportunity. Um So, I've already got quite a big position, so I'm not buying a lot of it at the moment.
But if it dips quite a bit, I'm trying to just capture that. I can't help myself. Okay, so Microsoft is another big one. I haven't been buying it because my average price is below here.
My average price is around 27.50 around here, so I don't love to buy when the share price is above my average price. It's just a psychological thing, I guess, for me. Amazon, it's dipped a bit, but it's not really dipped enough.
Again, my average cost price is around 39, $40. So, I love these two companies.
I think if they dip more, those are the ones I'm going to look at. U L T, I love U L T. Um it's a very risky, very volatile ETF. Um but if we look year-to-date, it's got a huge amount of upside, and that's the difference between the REK shares U L T with an I and the YieldMax U L T. Um which doesn't capture hardly any upside. It's not as volatile, but the reason I really like U L T is because I really like its holdings. It changes them weekly. It's very actively managed, but it's also capturing a lot of upside. It can capture a lot of downside, too, as is the case in point here. It was up to $17, and it was down in that um phase where there was a lot of conflict with Iran and all that news. And it was down again, and I was buying here, and then it's slowly been making its way back up to 14.50, but then we had this big dump. And now, so anything under 12, I'm buying, but because cuz it didn't quite get down there, I haven't bought into it again. But anything under 12, if it comes back down here because we have some some news thing, some fear, um then I'll be getting into U L T. It's on my watch list. And then S P C I, I talked about this in one of my previous videos. This is the space industry income blast ETF from Tuttle Capital. It's got a lot of um space-related holdings. I'm quite bullish on space. I think space, the final frontier, it's going to be quite big in the future. Obviously, with the SpaceX IPO coming up, um I hold Rocket Lab, which is one of my biggest growth um It's not one of my biggest growth stocks, but it's done the best. I think I'm up like 400, 450% on on my Rocket Lab position in in just a year or a year or so. And I think it's going to continue with um SpaceX and everything that's going on in space and putting infrastructure into space. If they actually do manage to get data AI data centers into space, it's going to go bonkers, man. Um so, I'm keeping my eye on that, but this for me is too expensive. So, I'm waiting for it to have a big pull back. I probably won't get into it until it comes down to the 30, 31 dollar mark, which I think it can cuz it's pretty volatile industry. It's going to have its ups and downs. So, I'll I'm willing to be patient on that one.
So, those are the kind of income ETFs that I'm eyeing up that are on my kind of main watch list at the moment. Um and those are my three that I'm kind of keeping These are Metas that obvious buy for me at the moment. I'm just DCA'ing into that into that whilst it's under $28.
And Uber as well, I think that's really undervalued right now. So, those are my kind of top three and then keeping my eye on these ones. And then I don't know if this is of interest to people, but I do also buy growth stocks in this portfolio to kind of caveat and all almost act as an offset to any potential NAV erosion that income ETFs have because obviously if you're being paid a distribution, you're gaining income.
That has to come out of the share price.
And so, there's always if the market's going down, an element of you're going to have some kind of NAV erosion. I don't want to say erosion, but um your your your net asset value's going to come down quite a bit cuz you're being paid a distribution as well as the market's coming down.
So, I like to offset that with some growth stocks in this portfolio.
Um I've been buying SoFi, VRT Vertiv, L I haven't been buying Alphabet. It's on my watch list now. I bought that a bit at around 90, 92. It's now up quite a bit. Elf, I'm waiting for it to go down into kind of mid 40s. If it does, I think it's big buy.
Yeah, around there. Um Vertiv is like AI kind of infrastructure. Um it's like look [snorts] at it. It's just too high for me at the moment. I haven't bought into it. So far, I did I've got my average price is around $16.
Um if we go here, yeah, probably a little bit high. But yeah, anything under 15, big buy for SoFi. Uh Vistra, this is like the nuclear power energy AI bottleneck that I was talking about. And Vistra is one of the most the best companies. I think it's got um in terms of opportunities. I mean, I think it's got a forward PE of like 16 at the moment. Um but it's got loads of deals. I think she's done a deal with Meta. Now it might say it down here. Um but I just bought into Vistra at Let's just do year-to-date.
At 14 No, 138. I got in around here. Very happy with that position cuz it was up quite a lot. And I think it's Yeah, I think it's going to do really well. Uh Celsius, so this is a bit different for me cuz I'm obviously a bit tech and Bitcoin heavier. So I'm trying to change like diversify my portfolio a little bit. Um and so this is energy drink. So Celsius and I just did the research that I did. It's just so undervalued. Had a great earnings. I think it's revenue is up like I want to say 130% but that can't be right. That sounds like a lie.
Um but it we had a really good earnings report. And it's just I just think it's super undervalued. Again, I think it's got a forward PE of like 16 or 17.
Don't take my word for it. I haven't got it on it. I I don't know why TradingView doesn't have forward PEs on it. I was looking for it yesterday. I was like, "Why does TradingView not have a forward PE anywhere?" Like if you go down here, it doesn't show anywhere. I was looking for it for ages.
If anyone knows where on TradingView you can just easily see the forward PE of a stock um or even an ETF, please let me know in the comments.
>> [snorts] >> Um anyway, those are the stocks that I'm looking at and buying. Uh some of them I'm buying, haven't bought into some of them yet. And these are my income ETFs.
I think there's, as I said, quite a bit of opportunity in the market. Like if you look at some of these, like Celsius, this is well it's very near its 52-week low. Like it's so it's priced so low at the moment. Uh Vistra, it's kind of near it. Now it's had a bit of a recovery now, but it was so near its 52-week um low when I bought into it. Elf, it's right on its 52-week low. It's a good buy, Elf. Vertiv, I mean you got to do more research than this, of course.
Vertiv is a bit expensive, but there's a lot of bullish activity going on for Vertiv so far again. So there's a lot of opportunities in the market and I would uh recommend just doing your research on the underlying of these income ETFs. So not just buying, you know, what people are really raving about, but really doing the due diligence of okay, so Meta, what does Meta look like right now? What are what's the forward PE? What's the earnings doing? Like Meta's got like 33% annual growth rate from its earnings.
And yet it it got decimated off post-earnings because of its cap expend. But if if uh Zuck suddenly comes out and be like, "Look, the stock price has been crushed a bit. We're going to reduce our cap expend." The share price is going to go bonkers. It or not won't go bonkers, but it'll Well, when I show it here, one year forecast, um it'll get back up to 800 pretty quick, I reckon. As soon as they say they're not spending as much money on AI and all this cap expend and all this sort of stuff. But if you look at their revenue, it's just a cash machine. Like it makes so much money.
Um so I I just think it's an obvious buy. But yeah, it's important to do your own research, um but for me this is what I'm looking at and what I've been buying, even though we are in greed at the moment I still think there's a lot of opportunities right now. So, I'll leave it there guys. Let me know what you think about this. Let me know what you think of this list. Are there ones that you think are obvious buys which I haven't included? Any ETFs that you're bullish on which I haven't included? I would love to hear what you're buying, what you're looking out for.
Um, yeah, let me know in the comments and I will leave it there and I'll see you in the next one. Cheers.
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