6 ETF Gems That Have Fallen 50% From Their Highs

6 ETF Gems That Have Fallen 50% From Their Highs

Identifying good funds whose prices have fallen is the first step in bargain hunting.

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Reviewed by: etf.com Staff
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Edited by: Ron Day

ETF-focused investment advisors and self-directed investors alike enjoy a bargain.

That’s particularly true when they feel they have discovered an investment that is truly “on sale.” This is a concept that stock investors have chatted about for decades. 

But because ETFs cover hundreds of market segments and sub-segments, another excellent application of the research process is to identify market areas that might just be cheap on a long-term basis.  

Whether an investment is a “great value” is in the eye of the beholder. But identifying what has fallen precipitously in price from its past peak level may serve as a key first step in a more rigorous research and decision-making process. So, here are a half-dozen ETFs that are more than 50% below their all-time high levels and still have at least $3 billion in assets under management. The latter filter tells us that they cannot be dismissed as niche ideas that didn’t work or ultra-levered ETFs that went badly.  

So, enjoy this Christmas gift. It’s a six pack, not your favorite beer, but of ETFs that might turn out to eventually fund the cost of many Christmas parties in the future. 

From ARKK to GDX, 6 ETF Gems

The VanEck Gold Miners ETF (GDX) is more than 50% below its all-time high, and invests in gold mining stocks, specifically the larger ones. This $12 billion ETF suffers from the nature of such stocks to viewed as both gold plays and as stocks. So, while GDX tends to follow the price of gold to some degree, its portfolio can suffer a counterpunch when mining companies are out of favor.

The ARK Innovation ETF (ARKK) is not a stranger to ETF investors, even casual ones. It is about 70% below its all-time high. And while its portfolio sells at a lofty 35 times forward earnings, for investors that like the “invest in innovation” approach used here, that may not matter as much as the 70% off part of the story. 

The iShares MSCI Extended Duration Treasury ETF (EDV) is a $3 billion ETF that invests in long-term US Treasuries. It is similar in maturity range to the wildly popular iShares 20+ Year Treasury Bond ETF (TLT), but EDV uses Treasury strips, not bonds with coupon payments. That adds to an already volatile profile and explains why it is about 60% off its all-time high. 

The SPDRA S&P Biotech ETF (XBI) invests in a sector that used to be even more volatile and downright speculative. Biotech has matured as an industry over the decades, but XBI sitting 55% below its all-time high is a testament to the fact that this sector is not exactly for “widows and orphans.” 

The iShares MSCI China ETF (MCHI) is one of a pair of single-country ETFs that round out this list. This $6 billion fund is off more than 55% from its all-time high. Its portfolio only sells at just above one times trailing annual sales. However, the eternal issue for US investors with Chinese stocks is how reliable the fundamental data is. Still, a halving of the ETF’s price might offset some of those concerns.

The iShares MSCI Brazil ETF (EWZ) rounds out the list and represents the fact that Latin American stocks have lagged the US, just like just about every other country’s stock market in recent years. EWZ still has plenty of fans despite sitting about 65% below its all-time high price, as it still holds $5.5 billion in assets.

So, there’s a six-pack for the holidays. These ETF have not exactly found themselves under the mistletoe recently, but with the markets starting to look around for investments to own outside of the Magnificent Seven stocks, some of these are worthy of examining by investors. 

Rob Isbitts' Wall Street career spans 5 decades and multiple roles, all dedicated to providing clarity to investors by busting classic myths and providing uncommon perspective. He did so as a fiduciary investment advisor, Chief Investment Officer and fund manager for 27 years before selling his practice in 2020. His efforts now focus exclusively on investment research, education and multimedia. He started ETFYourself and SungardenInvestment to provide straightforward commentary and access to his investment intellectual property for portfolio construction, stocks and ETFs. Originally from New Jersey, Rob and his wife Dana have 3 adult children and have lived in Weston, Florida for more than 25 years.