Two Glaring Reasons to Be Wary of This ETF

It's like a long-forgotten star who suddenly shines in a hit movie: The HOLDRs B2B Internet(BHH Quote) sprinted past the proliferation of "inverse" and leveraged ETF offerings to finish at the top of the charts for the month of April.

The resurrection of the HOLDRs "business-to-business" offering to the investment spotlight could also be interpreted as a reminder of the hazards of the "trend following" that produced so much misery suffered in the aftermath of the tech-stock boom.

With a vault of 29.69% in its total return for April, BHH surfaced as No. 1 for the month, out of the 673 ETFs tracked by TheStreet.com Ratings.

But, as was the case eight years ago at the zenith of the Nasdaq spike, BHH's performance numbers should be accompanied by big, bold warnings. Believers in "persistence of performance strategies" and "momentum investing" should be cautious of BHH's one-month surge. ...