April will soon be over and along with seasons changing, May through October is historically seen as a challenging time for stocks. If investors are looking to avoid some of the damage, they could look to the funds highlighted in an article on Benzinga—some for shorting.
If you find truth in the expression “sell in May and go away,” the Benzinga article recommended looking at the following ETFs for the following reasons:
- HealthCare Select Sector SPDR (NYSEArca: XLV): good low-beta play to go long on
- Vanguard Consumer Discretionary ETF (NYSEArca: VCR): a viable option for shorting
- United States Natural Gas Fund (NYSEArca: UNG): either short it or sell calls on it
- Direxion Daily Financial Bear 3X Shares (NYSEArca: FAZ): not a buy-and-hold ETF, but worth a look
- ProShares UltraShort Oil & Gas (NYSEArca: DUG): the disappointing March jobs report is one more reason to think energy prices are headed for a correction
For information on why these funds should be avoided, visit Benzinga.com.