ETFs on the Bubble

This year’s small pullback in the market has affected mainly volatile ETFs in the orientation of country, sector and specialty funds. These have been the top performers over the past few months, so it’s no surprise that they are the first ones to correct more sharply.

If you follow a 10% trailing sell stop discipline, the following 13 ETFs have exceeded that point and should not be held. The list below shows the drop off from the high point for each ETF that has exceeded the 10% limit:

TF (-25.69%)
TKF (-23.39%)
IFN (-15.23%)
PXJ (-14.11%)
VDE (-12.97%)
PXE (-12.48%)
FXI (-12.24%)
DBC (-12.06%)
XLE (-11.93%)
IYE (-11.89%)
IXC (-11.80%)
IGE (-11.01%)
IIF (-10.23%)

This list is not all inclusive; it is taken from the 159 most widely held ETFs that I currently track in my data base.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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