ETF investing has a lot of powerful advantages. The best ETFs offer built-in diversification and allow investors to take responsible bets on sectors and geographic regions to seek outperformance.
Of course, that only works if you put your money in the best ETFs. The bottom line is that even the advantages of exchange-traded funds can’t save you from losses if you are heavily invested in the wrong ETFs at the wrong time.
Among the ETFs that I think investors should avoid right now are those with exposure to sluggish countries in and around Europe as the region faces a slowdown, as well as long-term bond funds that could come under pressure as rates rise in the next year or two.
Here’s a closer look at the five worst ETFs right now: