This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ETFs: 10 Most Dangerous (Part I)

In 2008, both target-date ETFs and target-date mutual funds took a huge blow as the markets slid downward. Target date funds that were more aggressively allocated for further retirement dates were hit worst.

TDV fell 40% in 2008. While the retirement date for its target audience is still far off, these returns are unnerving. Funds like TZD are dangerous because they combine a long-term trading strategy with a product that trades daily on an exchange. It would be difficult to watch an ETF fall 40% and stay invested for the long term.

Investors who have any level of financial knowledge are better off building a basic, diversified portfolio rather then putting all their eggs in TDV's basket.

8. Claymore/BNY Mellon Frontier Markets (FRN).

The risks of investing in this "frontier markets" ETF are not yet worth the potential rewards. FRN invests in the most emerging of emerging markets, areas that are inherently volatile economically and politically. FRN's top five country allocations are Chile, Poland, Egypt, Colombia and Kazakhstan.

The three-month average daily trading volume for FRN is a low 13,221. Since the fund is illiquid, investors face illiquidity compounded with inherent volatility. While this fund may be worth a look in the future, for now it is simply dangerous.

7. UltraShort Health Care ProShares (RXD).

RXD has two things going against it: the fact that it's illiquid and the fact that it's leveraged. ProShares, the pioneer of the leveraged fund industry, released RXD as part of a short/long pair in a series of leveraged sector funds.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs