It depends. Some ETFs are very diversified, while others? Well, not so much. We've just updated our Strong ETF ChartList, which now includes 53 of the top performing ETFs. On the surface, they're all performing great with SCTR (StockCharts Technical Rank) scores in the top quartile of all ETFs. But are they the right investment for you? Maybe, maybe not. Let me give you an example.
Aerospace ($DJUSAS) and defense ($DJUSDN) have both been on the improve of late. As a result, ITA is on our Strong ETF ChartList. ITA is the iShares U.S. Aerospace & Defense ETF. It might seem like a great idea to benefit from renewed strength in that area of the market, right? Well, a closer look at the Top 10 holdings reveals that those Top 10 stocks account for more than 71% of the entire ETF. And just 2 stocks, Boeing (BA)
and Raytheon Technologies (RTX), account for more than 37% of the ETF. Here's the latest technical view of the ITA:
