Against The Wind

Ulli Uncategorized Contact

When the markets zig, you hope to have a component in your portfolio that zags to offset or minimize any drawdown. While that is not always easy to do, during May’s market meltdown, I noticed one ETF (IIH) that definitely bucked the trend.

Take a look at the 6-months chart, comparing IIH with the SP 500 (SPY):

Not only has it bucked the trend, but during the most recent correction, it has held up remarkably well and sits in the number 1 spot in the technology sector out of the 48 I track.

So what’s wrong with it? For one, it’s a tiny ETF with net assets of only $22 million. Second, the average daily volume of $284k makes it suitable for only a small investor.

You won’t find any professionals involved with IIH, so if you are in the market to deploy small amounts of money to a technology sector, this one deserves further investigation. Despite its recent fine performance, you need to work with a trailing stop loss to protect yourself from downside risk.

Disclosure: No holdings in IIH

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