David Trainer breaks down ETFs to calculate which funds are invested in stocks identified as the...

David Trainer breaks down ETFs to calculate which funds are invested in stocks identified as the most dangerous to hold. Working on the theory that keeping a high percentage of a fund's assets in stocks deemed unsafe tends to be bad thing, he lines up the 10 ETFs that he finds "the most dangerous." Making the list: RTL, RWW, SCHH, RWR, VNQ, DRN, WREI, FRI, FNIO, FTY.
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Comments (2)
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
    It's very interesting that the majority of the worst on the list are some form of REITs. However, I'm not surprised at that.
    8 Mar 2012, 04:41 PM Reply Like
  • George Simone
    , contributor
    Comments (23) | Send Message
    Certainly a most thorough and interesting analysis of 10 deemed to be the most dangerous ETFs. Still, this is only a one-man's opinion, while the market's judgment for these ETFs is quite different, and I for one trust the market and as the market has it, each one of these ETFs is a bull. With eight of these ETFs being REITS, they followed the DOW REIT index in lockstep from the low in December to the recent high in early February. And from that point on volume and participants interest simply faded away, and the DOW REIT along with the ETFs mentioned above went into a sideways drifting consolidation mode. But since the ten, twenty and fifty Day Moving Averages of this DOW REIT and ETFs continue to maintain a bullish configuration, they remain poised to the upside. By the way, they are also well supported by the Troika, in which the bear trend [BGZ] is stuck in a deep hole at the bottom, while the bull trend [BGU] along with the S&P 500; SPX are busy at the top. That theTroika displayed this bullish configuration also during last Tuesdays selling squall, is a sign that the market is a bull, and so are the ETFs mentioned above. Just watch for an increase in volume and a breakout to the upside, and then enjoy the ride. Oh yes, just in case, if you are a bull in this game, keep your fingers crossed. 
    9 Mar 2012, 12:11 AM Reply Like
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