Sell on the Pop Prospects: June 15 Edition

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.To get access to all ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro.55 ETFs made it to the list of sell on the pop prospects this month. The last month witnessed rising bond yields, as well as a strong US dollar, and strained market conditions as the EU agreed to ban Russian oil imports.Several clean energy ETFs such as Invesco Solar ETF (TAN B) and iShares Global Clean Energy ETF (ICLN A-) featured on the sell on the pop prospects list as the clean energy stocks got a boost after the Biden administration granted tariff exemption on solar imports from several SouthEast Asian nations including Cambodia, Malaysia, Thailand, and Vietnam and the announcement to use the Defense Production Act to promote domestic production. These funds are also gaining on the back of a supply crunch and rising prices of oil and gas. Also, read our take on An ETF to Capitalize on the Clean Energy Transition here: Select Sector SPDR Fund (XLI A) was one of the sell on the pop contenders on the list as the industrials sector gained by ~0.11% in the last month.iShares U.S. Home Construction ETF (ITB A-) and SPDR S&P Homebuilders ETF (XHB A+) also made it to the list as both construction & engineering as well as building products segments gained by 19% and 1%+, respectively in the last month. Though the supply of materials and labor still remains constrained, lumber prices have begun to fall.Several emerging market funds like Vanguard FTSE Emerging Markets ETF (VWO A), Schwab Emerging Markets Equity ETF (SCHE A), and SPDR Portfolio Emerging Markets ETF (SPEM) featured on the list. Brazil benefited from higher metal prices and a strong Real while Mexico was supported by its GDP growth data.Many technology focused ETFs such as MicroSectors FANG plus Index 3X Leveraged ETN (FNGU) and ARK Next Generation Internet ETF (ARKW ) also made it to the list as the overall IT sector gained by ~0.60% in the last month driven by a rally in large-cap technology stocks like Amazon and Alphabet.Several China focused funds like Direxion Daily FTSE China Bull 3X Shares (YINN B) and Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB) featured on this month’s sell on the pop list after China concluded its regulatory probe into Didi Global, cooling off the regulatory pressures from its internet sector. Beijing also eased COVID-19 restrictions thereby boosting investor confidence.To compare this month’s list with the one published on May 18, click hereETFs to Sell on the PopPlease note that this list is updated on a monthly basis.For more ETF analysis, make sure to sign up for our free ETF newsletter.Disclosure: No positions at time of writing.

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