ETF Trends
ETF Trends

Over the past three years, top performing exchange traded funds include:

  1. iShares MSCI Brazil (EWZ) 62%
  2. iShares S&P Latin America 40 Index (ILF) 54%
  3. iShares MSCI Mexico (EWW) 46%
  4. 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:

  1. Maintain an 8% stop-loss on your ETFs.
  2. 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.
  3. Don’t chase markets that are too hot.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.