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Just like stocks, there are some ETFs you just want to avoid. There are some ETFs on the market that are listed as dangerous, and at this time, many of them are. David Trainer picks his top 5 ETFs to avoid, and explains which stocks are better options.

Investors should sell all dangerous-rated energy sec­tor ETFs. The five ETFs below are the worst-rated of all energy sec­tor ETFs:

1. iShares Dow Jones U.S. Oil & Gas Explo­ration & Pro­duc­tion Index Fund (IEO)
2. SPDR S&P Oil & Gas Explor & Prod­uct (XOP)
3. SPDR S&P Oil & Gas Equip & Ser­vice (XES)
4. Rydex S&P Equal Weight Energy ETF (RYE)
5. iShares Dow Jones U.S. Oil Equip­ment & Ser­vices Index Fund(IEZ)

Investors seek­ing to out­per­form the mar­ket with expo­sure to the energy sec­tor should invest only in the attractive-or-better rated stocks in the sec­tor. Cur­rently, there are only 13 (out of 192 we cover) energy stocks that earn an attractive-or-better rat­ing. They include Exxon Mobil (XOM) and  Chevron (CVX)…

Attrac­tive ETFs:

We find no Attractive-or-better-rated energy ETFs.

Neu­tral ETFs:

QCLN allo­cates its value in a way that earns it a neu­tral rat­ing. We rec­om­mend investors buy the 13 very attrac­tive and attrac­tive stocks in this sec­tor before buy­ing any of the U.S. Equity Energy ETFs except those we recommend.

Dan­ger­ous ETFs:

We rec­om­mend investors sell DIG, IYE, VDE, ERX, PXI, FEG, XLE, PSCE, PXE, FXN, PXJ, IEZ, RYE, XES, XOP, and IEO because of their dan­ger­ous ratings.

According to David, there really aren’t any options when it comes to Energy ETFs. Most, if not all, are too risky to make the investment worth it. It would be great to hear some readers’ opinions on this one. With such an extreme opinion by David, it would be great to hear some feedback. Comment away! 

Quotes taken from report by David Trainer, Read the entire article here.

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