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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- 20 ETFs made it to the list of sell on the pop prospects this month. The U.S. market saw a volatile but resilient performance last month. Major indices faced a brief mid-month pullback but later surged to new records, primarily driven by massive tech-stock rallies and positive easing in inflation data. But recently experienced a sharp sell-off, primarily driven by a surprisingly strong U.S. jobs report and a downturn in heavyweight semiconductor and AI stocks.
- MSOX increased last month primarily because investors heavily piled into cannabis stocks ahead of landmark regulatory shifts, including an impending DEA hearing. As a 2x leveraged ETF, AdvisorShares MSOS 2x Daily ETF (MSOX ) amplifies the daily returns of the underlying U.S. Cannabis ETF (MSOS), which experienced a massive surge.
- SPDR S&P Homebuilders ETF (XHB ) and iShares U.S. Home Construction ETF (ITB ) featured on the sell on the pop list. US homebuilders and the broader construction sector recently increased due to an unexpected rise in homebuilder sentiment, a mild boost from seasonal spring demand, and a surge in overall construction spending. Compare and contrast the two ETFs here
- Financial Select Sector SPDR Fund (XLF ) was one of the contenders on the list. The US financial sector experienced gains last month primarily due to strong first-quarter corporate earnings, a surge in M&A, and an upbeat macroeconomic environment.
- Invesco BulletShares 2026 Corporate Bond ETF (BSCQ ) featured on the sell on the pop list. Corporate bond fund prices in the US increased as a result of shifting expectations for Federal Reserve interest rate policies.
- The T-REX 2X Long HOOD Daily Target ETF (ROBN ) increased last month primarily because it is a 2x leveraged fund designed to amplify the daily price movements of Robinhood Markets, Inc. (HOOD) stock. The ETF’s gains were driven directly by an uptrend in HOOD’s share price due to favorable regulatory shifts, strong insider buying, international expansion, and the launch of new products.
- _To compare this month’s list with the one published on May 20th, click here
ETFs to Sell on the Pop
| Ticker | Name | Last | 1-Year Return | Leverage |
|---|---|---|---|---|
| (MSOX ) | AdvisorShares MSOS 2x Daily ETF | 4.46 | 0.5929 | Double-Long |
| (XHB ) | SPDR S&P Homebuilders ETF | 103.29 | 0.0858 | Long |
| (XRT ) | SPDR S&P Retail ETF | 83.75 | 0.0692 | Long |
| (SCMB ) | Schwab Municipal Bond ETF | 25.65 | 0.0305 | Long |
| (ITB ) | iShares U.S. Home Construction ETF | 92.55 | 0.0207 | Long |
| (XLF ) | Financial Select Sector SPDR Fund | 51.97 | 0.0135 | Long |
| (BSCQ ) | Invesco BulletShares 2026 Corporate Bond ETF | 19.55 | 0.0031 | Long |
| (JMST ) | JPMorgan Ultra-Short Municipal ETF | 50.92 | 0.0029 | Long |
| (IAGG ) | iShares Core International Aggregate Bond ETF | 50.07 | -1.38% | Long |
| (EDV ) | Vanguard Extended Duration Treasury ETF | 63.04 | -2.08% | Long |
| (KIE ) | SPDR S&P Insurance ETF | 56.43 | -5.19% | Long |
| (ORCX ) | Defiance Daily Target 2X Long ORCL ETF | 50 | -8.98% | Double-Long |
| (IGV ) | iShares North American Tech-Software ETF | 95.65 | -9.75% | Long |
| (WCLD ) | WisdomTree Cloud Computing Fund | 31.82 | -13.14% | Long |
| (IHI ) | iShares U.S. Medical Devices ETF | 49.86 | -19.68% | Long |
| (NAIL ) | Direxion Daily Homebuilders & Supplies Bull 3X Shares | 37.87 | -22.86% | Triple-Long |
| (ROBN ) | T-REX 2X Long HOOD Daily Target ETF | 22.48 | -35.62% | Double-Long |
| (SMCY ) | YieldMax SMCI Option Income Strategy ETF | 7.55 | -59.45% | Long |
| (SMCX ) | Defiance Daily Target 2x Long SMCI ETF | 25.78 | -65.61% | Double-Long |
| (NOWL ) | GraniteShares 2x Long NOW Daily ETF | 5.98 | N/A | Double-Long |
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
