ETFs that are 40-50% off of their 52-Week Highs? -? Fire Sale or The Beginning of Correction?

Every so often, it is smart to do a screen of ETFs that are poorly performing. In this way, you can find a basket of stocks that may have some value in the ever-changing economic cycles.

An ETF screener will allow you to search an ETF’s price performance for:?1 year or 3 years.?You would usually see a 52-week price range in an online portfolio that you build on a finance website using publicly traded symbols.

The search that I performed this week was for ETFs that are down more than 40% from their 52-week highs this year.?Amazingly, some of the ETFs that are in the search results are not what you would guess.?With COVID, there are many stay at home and e-commerce related Internet stocks that grew to all-time highs very quickly in 2020-2021.?Many financial advisors are recommending some asset allocation into value stocks or inflation resistant stocks at this juncture.

With that being said, many of the high-flying internet stocks were overpriced in recent months.?Now, they have come down a bit, and some have come down 40-50% off of their highs.?Several are trading at 2019 prices.?The federal reserve rate hikes are looming, and many investors are concerned about tech stocks.

Here is the short list of ETFs.?To keep things, simple, this list shows the ETF Symbol, The ETF Price, The Name of the ETF, and the percentage down from the 52-week high. The date of this printing is from Yahoo Finance on Sat, Feb 5th, 2022

?EDUT????7.97???????Global X Education ETF?-63.24%???????????????-

DAPP????13.84????VanEck Vectors Digital Transformation ETF?????????-61.94%???????????????-

ENTR????12.74????ERShares Entrepreneur ETF????????-60.93%???????????????-

PBW?????54.34????Invesco WilderHill Clean Energy ETF??????-60.79%???????????????-

VFIN?????6.22???????Simplify Volt Fintech Disruption ETF?????-59.86%???????????????-

BBC???????28.68????Virtus LifeSci Biotech Clinical Trials ETF -54.19%???????????????-

GIGE?????23.78????SoFi Gig Economy ETF???-51.05%???????????????-

CLIX??????51.05????ProShares Long Online/Short Stores ETF??????????????-51.02%???????????????-

XBUY????31.24????Amplify International Online Retail ETF???????????????-49.94%???????????????-

IBUY??????71.72????Amplify Online Retail ETF???????????-49.13%???????????????-

XBI????????90.79????SPDR S&P Biotech ETF??-48.06%???????????????-

ONLN???49.57????ProShares Trust - ProShares Online Retail ETF???-46.96%???????????????-

BTEC?????39.17????Principal Healthcare Innovators Index ETF??????????-46.62%???????????????-

IPOS?????22.69????Renaissance International IPO ETF?????????-44.65%???????????????-

BITS??????16.35????Global X Blockchain & Bitcoin Strategy ETF?????????-42.99%???????????????-

Keep in mind these are not as volatile as leveraged ETFs, but Funds that contain a wide variety of holdings.?One of the ETFs CLIX does have a short “brick and mortar” component, but the others are funds that hold many stock positions.?Please check the holdings of each ETF before you buy so that you are comfortable with what the ETF holds.?

There are reasons for the lower prices of some of these funds. A few of these” internet focused” ETFs have many holdings of big international or China companies, which have taken a hit in price in the last year.?However, if you believe in the “Harry Dent” Demographics theories?of global market growth, you will see many of these ETFs have?great upside as per global population needs.?Due to the needs of billions of online consumers around the world, many of these ETFs have amazing long-term growth potential.

As a note, some of the ETFs above such as XBI, BBC, or BTEC are Pharma/Biotech oriented.?Again, these have risk, but the holdings are fairly diverse in these BioTech ETF funds.?Some of the ETFs are disrupter, IPO or Entrepreneur related.?Thus, all of the list above are interesting sectors, but the holdings of each ETF is what you should focus on before buying any one of these ETFs.?Further, this list also has an excellent “e-learning fund”:?EDUT and a “Crypto Currency”?related fund:?BITS.

I would like to think that there is value in buying an ETF that is down?40-50% in price, but there are no guarantees. However, all of these may have long-term potential.

Happy Shopping.

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George Mentz?JD MBA CILS is a CWM Chartered Wealth Manager ?, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ?. The GAFM is a TUV accredited graduate body that trains and certifies professionals in 150+ nations under ISO 29990 standards. Mentz is also an award winning author and graduate law professor of wealth management in the USA. Mentz is the titular Seigneur of the Fief Blondel in the Crown Dependency of Guernsey Channel Islands