In this post I decided to continue the prior study. In the prior post I present a study that looks at how future performance is impacted by the prior year for some of the most liquid ETFs. I now extend these results by reviewing the best and worst performers of 2010 and eliminated those that were less than 500million USD in size and have very low volume. The results below indicate that when you have extreme movements either up or down there is a period of reversal. Note that the exception is UNG which seems to have gone down since inception however both EWP and EWI have gone up 13% since 12/31/2010 and all the best performers in ETF have had a reversal. Note that while TUR did not have an extreme movement upwards in 2010 (anything over 50% is extreme) it was still among the top performers. It will be interesting to monitor these positions throught the first half of 2011 to see where they end up. Note as a disclaimer these are merely observations that I am making about the ETF market and not live positions.
