Three ETFs that are ready to pop

Published Fri, Apr 8 20166:00 AM EDT

A group of up-trending ETFs could be ready to move even higher, should analyst forecasts for the individual holdings of these funds come to fruition. By using a proprietary method to scan these fast-trading funds, CNBC Pro searched for the ones that have increasing money flows and whose member stocks have a bright outlook. Using data from ETF.com and FactSet, we first ran a screen of more than 500 ETFs focused on different sectors and slices of the market in order to find the funds with positive price momentum. Once we narrowed the list, we calculated the average 12-month return for a typical stock in the ETF based on the consensus Wall Street price target estimate for each individual member. Below are the three funds, along with some of their stock holdings, that should see the biggest gains due to a boost in short-term money flow and as their individual members reach bottom-up projections. Vanguard Growth Index Fund ( VUG ) Based on 12-month price targets for this ETF's member stocks, the fund should rise about 12 percent over the next year. The fund provides exposure to large-cap U.S. companies in sectors that tend to grow faster than the rest of the market. In the past month, ticker VUG is up 4 percent compared with an increase of 2 percent for the fund tracking the S & P 500, SPY . LinkedIn , Fitbit and Alexion Pharmaceuticals are some of the stocks where the consensus from analysts points to strong gains ahead, according to FactSet. Read More Investor Link adds Baker Hughes, beat-up biotech iShares U.S. Home Construction ETF ( ITB ) Based on analysts 12-month price targets for this ETF's members, the average percentage increase stands at 11 percent. The ETF provides exposure to well-known housing and construction stocks. In the past month, ticker ITB is up 5 percent, trading near the highest level this year. Toll Brothers , Lowe's and Mohawk Industries , a maker of flooring products, are some of the names expected to post large returns in the next 12 months, estimates from FactSet show. Technology Select Sector SPDR Fund ( XLK ) Based on 12-month price targets for this ETF's member stocks, this fund could rise by 10 percent over the next year. The fund provides exposure to a basket of about 70 stocks in the S & P technology sector. In the past month, technology is leading the gains in the S & P 500 index, up 5 percent. Among the names that are projected to rise in the next 12 months are Alphabet , Apple and Salesforce .

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A group of up-trending ETFs could be ready to move even higher, should analyst forecasts for the individual holdings of these funds come to fruition.

By using a proprietary method to scan these fast-trading funds, CNBC Pro searched for the ones that have increasing money flows and whose member stocks have a bright outlook.

Using data from ETF.com and FactSet, we first ran a screen of more than 500 ETFs focused on different sectors and slices of the market in order to find the funds with positive price momentum.

Once we narrowed the list, we calculated the average 12-month return for a typical stock in the ETF based on the consensus Wall Street price target estimate for each individual member.

Below are the three funds, along with some of their stock holdings, that should see the biggest gains due to a boost in short-term money flow and as their individual members reach bottom-up projections.