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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- Only 12 ETFs made it to the list of sell on the pop prospects this month. All major US indices increased month-on-month, as the Federal Reserve cut rates by 25 bps to a range of 3.5%–3.75% in its December 2025 meeting, last week.
- Consumer Staples Select Sector SPDR Fund (XLP ) featured on the list, driven by strong performance from value-focused retailers (Walmart, Costco), growing consumer demand for essentials amid persistent inflation, signs of broadening market participation as investors moved from tech, and Federal Reserve rate cuts.
- Alerian MLP ETF (AMLP ) also made it to the sell on the pop list. The MLP sector increased last month due to strong dividend growth announcements, record share buybacks, and a long-term tailwind from surging energy demand driven by AI data centers, which MLPs’ pipeline infrastructure is poised to service.
- Real Estate Select Sector SPDR Fund (XLRE ) was another contender on the Sell on the Pop list. The U.S. real estate sector showed signs of a gradual recovery and nuanced growth last month, driven by improving sentiment from stabilizing inflation, and Federal Reserve rate cut, and resilient occupier demand, especially in logistics and housing.
- GraniteShares 2x Long META Daily ETF (FBL ) and Direxion Daily META Bull 2X Shares (METU ) featured on the sell on the pop list. META shares increased last month, driven by the company’s vision to integrate AI across its platforms (Facebook, Instagram, WhatsApp) for improving ad targeting, user engagement, and overall ad performance. Furthermore, investor confidence has been boosted by Meta’s strategic shift toward prioritizing AI development over aggressively funding the metaverse.
- YieldMax TSLA Option Income Strategy ETF (TSLY ) and GraniteShares YieldBOOST TSLA ETF (TSYY ) were sell on the pop contenders. Tesla’s recent stock surge was primarily fueled by investor excitement over Elon Musk’s long-term vision for AI and robotics, rather than improvements in the company’s core EV business performance. Compare and contrast the two ETFs here: https://etfdb.com/tool/etf-comparison/TSLY-TSYY/
- To compare this month’s list with the one published on November 26th, click here
ETFs to Sell on the Pop
| Ticker | Name | Last | 1-Year Return | Leverage |
|---|---|---|---|---|
| (SPLV ) | Invesco S&P 500 Low Volatility ETF | 72.02 | 0.0033 | Long |
| (TFLO ) | iShares Treasury Floating Rate Bond ETF | 50.53 | -0.04% | Long |
| (XLP ) | Consumer Staples Select Sector SPDR Fund | 79.64 | -2.93% | Long |
| (AMLP ) | Alerian MLP ETF | 47.53 | -3.18% | Long |
| (XLRE ) | Real Estate Select Sector SPDR Fund | 40.91 | -4.48% | Long |
| (BIZD ) | VanEck Vectors BDC Income ETF | 14.74 | -12.47% | Long |
| (FBL ) | GraniteShares 2x Long META Daily ETF | 32.12 | -13.68% | Double-Long |
| (METU ) | Direxion Daily META Bull 2X Shares | 31.33 | -17.38% | Double-Long |
| (NAIL ) | Direxion Daily Homebuilders & Supplies Bull 3X Shares | 59.7 | -46.53% | Triple-Long |
| (TSLY ) | YieldMax TSLA Option Income Strategy ETF | 40.24 | -52.99% | Long |
| (TSYY ) | GraniteShares YieldBOOST TSLA ETF | 6.19 | N/A | Double-Long |
| (NVOX ) | Defiance Daily Target 2X Long NVO ETF | 21.73 | -85.84% | Double-Long |
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
