As U.S. stocks retreat from their highs, investors are searching to unload or bet against investments that may get hit during this pullback. Here are three ETFs with negative momentum that may be good candidates.
CNBC Pro used a proprietary method to scan these fast-trading funds for the ones that have decreasing money flows, relatively high valuations and price charts that indicate a breakdown of a long-term positive trend.
Using data from ETF.com and FactSet, we first ran a screen of more than 500 ETFs focused on different sectors and slices of the market in order to find the funds with spikes in volume and negative price performance over the last five days.
Once we narrowed the list, we then searched for the ETFs with the highest price-earnings ratios relative to the market.
Then we turned to technical analysis and found from that list the ETFs whose charts show a price below the 50-day moving average.
Some of the sector ETFs that stood out during the course of our scan tracked biotech, real estate, semiconductors and small-cap stocks.