May 17, 2006 at 3:50 pm by Tom Lydon
Over the past three years, top performing exchange traded funds include:
- iShares MSCI Brazil (EWZ) 62%
- iShares S&P Latin America 40 Index (ILF) 54%
- iShares MSCI Mexico (EWW) 46%
- iShares MSCI Austria (EWO) 46%
Although the S&P 500 has been down 5 of the past 6 trading days and is 4% off of its high, world markets and sectors are giving back the most during this market correction. A look at the above top performers today, shows EWZ is now 15% off of its high, ILF 13%, EWW 11% and EWO 10%.
We advocate having a exit strategy for every ETF we buy. Previously we pointed out three rules to help ETF investors stay out of trouble. It is worth repeating them here:
- Maintain an 8% stop-loss on your ETFs.
- Keep an eye on the trend. If your ETF declines below its 50-day average, that’s not a good sign. If the same ETF declines below its 200-day average, sell.
- Don’t chase markets that are too hot.
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