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10 ETF Winners That May Be Too Hot to Handle
With the following funds up more than 25% -- and the top-performer up nearly 50% -- in three months, clients may be demanding to know why advisors are not including these high-performing ETFs in their portfolios. But advisors won't be so easily swayed.

“This list of top 10 in ETFland looks different every week,” says Ben Johnson, director of global ETF research at Morningstar. “It’s not a very useful list as far as advisors are concerned."

Reviewing the list Johnson says, "These are all products that represent ways to access leverage or a short exposure to the hottest or coldest segment of the global market over the past few months.” In particular, he adds, “China has been on a tear and Russia bounced strongly off the bottom.”

But ultimately, advisors should “bet on broad low-cost, broad exposures -- none of which are featured on this list,” he argues. While clients may want to chase high gains, Johnson says advisors should be looking for funds with stability instead of one "good" day. He warns advisors that these funds fluctuate not only on a weekly basis, but a daily one. --Andrew Pavia

All data from Morningstar as of March 31, 2015. Scroll through to view the hottest ETFs of Q1 or click here to view this list in a single-page version.


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