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 11 ETFs made it to the list of sell on the pop prospects this month. Equity markets fell amid geopolitical uncertainty, regulatory shifts in trade policy, and an AI scare trade that heavily impacted the technology sector.
- Vanguard Total International Bond ETF (BNDX ) featured on the sell on the pop list on the back of declining US Treasury yields as investors fled to the safety of government bonds, spooked by the dual threat of AI-driven labor displacement and a volatile White House trade agenda. The yield on the U.S. 10-year treasury note also declined to ~4.05% from 4.22% a month ago, amid rising volatility.
- Invesco DB US Dollar Index Bullish Fund (UUP ) was one of the sell on the pop contenders. The U.S. dollar index rose due to a combination of factors, including strong data in production, consumption, and housing, signalling a powerhouse economy.
- YieldMax NVDA Option Income Strategy ETF (NVDY ) was a sell on the pop contender on the list. Nvidia shares climbed after Meta Platforms announced a massive, multi-year partnership to supply millions of high-end chips for its AI data centers, cementing its dominance in AI infrastructure.
- Several volatility focused funds like iPath S&P 500 VIX Short-Term Futures ETN (VXX ), ProShares VIX Short-Term Futures ETF (VIXY ), ProShares Ultra VIX Short-Term Futures ETF (UVXY ), and VS 2x Long VIX Futures ETF (UVIX ) were sell on the pop contenders. VIX, the CBOE volatility index, increased to ~21 from ~16 a month earlier. Market volatility spiked amid geopolitical tensions, aggressive trade policies, and fears of technological disruption. Compare and contrast the two ETFs here: https://etfdb.com/tool/etf-comparison/VIXY-VXX/
- To compare this month’s list with the one published on February 4th, click here.
ETFs to Sell on the Pop
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
