Here is a look at ETFs that currently offer attractive short selling opportunities.
The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively.
Second, each of these ETFs is also trading above its 20-day moving average, thereby offering a near-term ‘sell on the pop’ opportunity given the longer-term downtrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.
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- 14 ETFs made it to the list of sell on the pop prospects this month. Market indices closed higher in September due to a combination of factors, including optimism around the Federal Reserve interest rate cut and a Tech lift.
- Global X NASDAQ 100 Covered Call ETF (QYLD ) and Roundhill N-100 0DTE Covered Call Strategy ETF (QDTE ) topped the sell on the pop list last month. Their gains were driven by the strong performance of the underlying Nasdaq 100 index, which both ETFs track.
- Several Treasury funds like iShares 20 plus Year Treasury Bond BuyWrite Strategy ETF (TLTW ), iShares 25 plus Year Treasury STRIPS Bond ETF (GOVZ ), and Direxion Daily 20 Plus Year Treasury Bull 3X Shares (TMF ) featured on the sell on the pop list, after they rallied on last week’s Federal Reserve rate cut. The Fed lowered its benchmark interest rate by 25 basis points to a new target range of 4.00% to 4.25% last week, in a bid to support the faltering labor market.
- YieldMax NVDA Option Income Strategy ETF* (NVDY ), YieldMax TSLA Option Income Strategy ETF (TSLY ), and YieldMax SMCI Option Income Strategy ETF (SMCY ) were contenders on the sell on the pop list. These funds provide monthly income with capped upside exposure to the tech stocks, which rallied on specific catalysts: an anticipated Fed rate cut for Tesla, a major OpenAI deal for Nvidia, and the shipment of new Blackwell products for Supermicro. Check out our list of Artificial Intelligence ETFs here: https://etfdb.com/themes/artificial-intelligence-etfs/
- To compare this month’s list with the one published on September 3rd, click here.
ETFs to Sell on the Pop
| Ticker | Name | Last | 1-Year Return | Leverage |
|---|---|---|---|---|
| (QYLD ) | Global X Nasdaq 100 Covered Call ETF | 16.95 | -6.25% | Long |
| (QDTE ) | Roundhill N-100 0DTE Covered Call Strategy ETF | 35.995 | -14.54% | Long |
| (TLTW ) | iShares 20 plus Year Treasury Bond BuyWrite Strategy ETF | 23.19 | -14.71% | Long |
| (GOVZ ) | iShares 25 plus Year Treasury STRIPS Bond ETF | 9.59 | -19.75% | Long |
| (YMAX ) | YieldMax Universe Fund of Option Income ETFs | 12.99 | -26.36% | Long |
| (NVDY ) | YieldMax NVDA Option Income Strategy ETF | 16.58 | -27.82% | Long |
| (TSLY ) | YieldMax TSLA Option Income Strategy ETF | 9.18 | -31.03% | Long |
| (TMF ) | Direxion Daily 20 Plus Year Treasury Bull 3X Shares | 39.83 | -33.39% | Triple-Long |
| (ULTY ) | YieldMax Ultra Option Income Strategy ETF | 5.67 | -45.69% | Long |
| (LLYX ) | Defiance Daily Target 2X Long LLY ETF | 13.72 | -50.20% | Double-Long |
| (AIYY ) | YieldMax AI Option Income Strategy ETF | 2.83 | -69.04% | Long |
| (SMCY ) | YieldMax SMCI Option Income Strategy ETF | 16.08 | -69.93% | Long |
| (MRNY ) | YieldMax MRNA Option Income Strategy ETF | 1.81 | -79.22% | Long |
| (SMCX ) | Defiance Daily Target 2x Long SMCI ETF | 37.49 | -80.49% | Double-Long |
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
