Friday, January 15, 2010

Looking for Yield? The Extremely Perilous State of Dividend ETFs, What to Buy and What to Sell

Investors who are want yield may be looking at dividnd ETFs. There are over 35 of them that trade in the U.S. However, their status is extremely risky.

We computed the RSi values of all dividend ETFs. Below is the table, ordered by RSI7 monthly, which is a long term indicator.



There are 12 of them strictly overbought (RSI over 70, long term), but 35 out of the 36 have RSIs over 60! This is shockingkly high. The RSI-A shows the average of all three RSI values.

Moreover, the average RSI 7 monthly is 68.15.

The onty ETF that is not near overbought levels is GULF (the MiddleEast Dividend ETF).

So, a huge investor beware.

You may receive buy and sell alerts of these ETFs sent automatically to you by entering the symbols in the Technical Trend Analysis Tool.

These are the ETFs, names and average trading volumes:



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1 comment:

Deming said...

Thanks for inluding average volume column.

Seamus

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