On April 22, 2025, Wall Street witnessed signals of easing trade tensions. President Trump and Treasury Secretary Scott Bessent both hinted that 145% tariffs on Chinese goods could be reduced in the near future.
Markets responded positively with SPDR S&P 500 ETF SPY, SPDR Dow Jones Industrial Average ETF Trust DIA and Invesco QQQ Trust QQQ advancing for two consecutive days.
Bessent: Current Tariffs Are Unsustainable
Treasury Secretary Scott Bessent also struck an optimistic tone during a private investor summit, suggesting the current state of US-China tariffs is not viable in the long term. He echoed sentiments he shared in an earlier interview with Yahoo Finance, saying he expects more "clarity" on tariffs in the months ahead.
Meanwhile, Vice President JD Vance visited India on April 22, 2025. Discussions included cooperation in technology, defense, and energy, with the White House noting “progress” on several fronts.
Tariff Pauses and Exemptions Under Consideration
President Trump is also exploring pauses on certain tariffs, particularly on auto imports and some consumer electronics. While he insists tariffs will eventually be enforced, the administration is leaving room for temporary exemptions.
Despite the discussions, the 10% baseline tariff on affected imports into the United States—introduced on April 5—remains in effect.
Meanwhile, the Wall Street Journal reported the United States is considering reducing auto tariffs on UK exports from 10% to 2.5% as part of ongoing trade negotiations (read: High-Beta & Momentum ETFs to Play on Hints of Easing Trade Tensions?).
Growth ETFs to Tap?
If trade tensions ease, inflationary worries and the risks of a U.S. economic slowdown should diminish. This would pave the way for the Fed to cut rates more quickly and aggressively, creating a favorable backdrop for growth exchange-traded fund (ETF) investing.
However, we have highlighted below a few low P/E (36 months) growth ETFs that are still cheap in valuation, as the investing backdrop is still edgy.
ETFs in Focus
First Trust Growth Strength ETF FTGS – P/E: 20.68X
The underlying Growth Strength Index provides exposure to a mix of domestic equities with filters for liquidity, return on equity, long-term debt, revenue and cash flow growth. The fund charges 60 bps in fees.
Invesco S&P 500 Pure Growth ETF RPG – P/E: 24.66X
The underlying S&P 500 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P 500 Index. The fund charges 35 bps in fees.
SPDR Portfolio S&P 500 Growth ETF SPYG – P/E: 25.68X
The underlying S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market. The fund charges 4 bps in fees.
First Trust Large Cap Growth AlphaDEX ETF FTC –P/E: 27.96X
The underlying Nasdaq AlphaDEX Large Cap Growth Index is an enhanced index that employs the AlphaDEX stock selection methodology to pick stocks from the Nasdaq US 500 Large Cap Growth Index. The fund charges 58 bps in fees.
Invesco NASDAQ Next Gen 100 ETF QQQJ – P/E: 26.99X
The underlying Nasdaq Next Generation 100 Index comprises securities of the next generation of Nasdaq-listed non-financial companies, that is, the largest 100 Nasdaq-listed companies outside of the Nasdaq-100 Index. The fund charges 15 bps in fees.
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Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Invesco S&P 500 Pure Growth ETF (RPG): ETF Research Reports SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports First Trust Large Cap Growth AlphaDEX ETF (FTC): ETF Research Reports Invesco NASDAQ Next Gen 100 ETF (QQQJ): ETF Research Reports First Trust Growth Strength ETF (FTGS): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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