Today we wanted to look at the idea of “positive divergence,” where ETFS have moved to new 52-week highs this month by exceeding their September rally highs.
There currently 1,427 ETFs in our database and out of that list there are 45 ETFs that have shown a positive divergence by moving to a new high this month (excluding leveraged and inverse funds as well as funds with average daily volume of less than 10,000). Below we have broken that list down by asset class, and interestingly enough, the Fixed Income asset class is the one with the greatest representation of funds moving to new highs as more than half (23 out of the 45) in the positive divergence list is from the Fixed Income asset class. International Equity is the asset class with the second highest representation in the list with 13 followed by Domestic Equity (6) and then Foreign Currency (3). The one broad asset class that does not have representation within the positive divergence list of ETFs is Commodity, as there were no Commodity based ETFs that have moved to a new 52-week high (excluding leveraged and inverse).