While the Good Times Roll: 3 ETFs to Buy Hitting New 52-Week Highs and Lows

The new 52-week highs for the NYSE and Nasdaq were positive Tuesday, a sign that risk-on assets are back in vogue despite the various issues still threatening market momentum. 

In the NYSE, the ratio between new 52-week highs and lows was 69 to 8, while the ratio on Nasdaq was more subdued, but favourable nonetheless, at 51 to 34.

However, the indicator providing the most positive news was the ratio of new 52-week highs for ETFs versus lows at 232 to 15. 

If you’re a contrarian investor, one of those 15 new 52-week lows might be the play. If you’re into momentum, the new 52-week highs clearly rule your focus. 

In today’s commentary, I’ll recommend at least one from each camp, excluding leverage and inverse ETFs, as well as fixed-income funds and buffer ETFs. 

Here’s my two cents on the matter. 

The Contrarian Play: Pacer Trendpilot 100 ETF (PTNQ)

The Pacer Trendpilot 100 ETF (PTNQ) hit its 7th new 52-week low of the past 12 months yesterday at $66.75. The last time it traded at these levels was April 2024. 

PTNQ tracks the performance of the Pacer NASDAQ-100 Trendpilot Index.  

“The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs the Index’s exposure to either 100% NASDAQ-100 Index, or 50% NASDAQ-100 and 50% 3- Month US Treasury bills, or 100% 3-Month US Treasury bills,” states the index’s webpage. 

The Nasdaq-100 Index is a large-cap index that tracks the performance of 100 of the Nasdaq’s largest non-financial companies. 

So, when the markets trend higher, PTNQ goes to 100% equities by tracking the Nasdaq-100 Index. When there is short-term volatility, it goes 50/50, with 50% in the Nasdaq-100 Index and 50% in 3-month U.S. Treasury bills. Lastly, when there are long-term market downtrends, it goes 100% 3-month U.S. Treasury bills. 

This governor on risk is why Morningstar gives it a four-star rating for risk-adjusted returns. Over the past five years, PTNQ’s total return is 11.92%, considerably lower than the large-cap growth category. 

PTNQ is ideally suited for risk-averse investors who still want some equity exposure in their portfolio but don’t want to handle the market timing themselves.    

The Momentum Play Part 1: Global X Defense Tech ETF (SHLD)

The Global X Defense Tech ETF (SHLD) hit its 54th new 52-week high of the past 12 months yesterday at $55.19. Launched on Sept. 11, 2023, yesterday’s new 52-week high was also its highest level in 20 months since its listing. 

The ETF tracks the performance of the Global X Defense Tech Index, a collection of global defense and security-related stocks. With the current discussions about the Golden Dome missile defense system, defense stocks should remain in the spotlight through the remainder of 2025. 

SHLD currently has 37 holdings. The top three geographic regions are the U.S. (53.1%), Germany (11.1%), and France (7.6%). Industrial stocks account for 84.6% of its $2.02 billion net assets, with tech stocks accounting for the remaining 15.4%. 

Regarding the top 10 holdings, you’ve got all the big defense companies such as RTX (RTX) and General Dynamics (GD). The top stock with a weighting of 10.91% is Palantir Technologies (PLTR), which is winning big with AI. Its shares are up 491% over the past 12 months. 

On the one hand, 54 new 52-week highs in the past 12 months--its shares are up 62%--suggest it might be overbought. 

However, in the long term, there is no doubt that global spending on defense is going higher. That makes SHLD a good sector play outside a core equity portfolio. 

The Momentum Play Part 2: JPMorgan BetaBuilders Canada ETF (BBCA)

The JPMorgan BetaBuilders Canada ETF (BBCA) hit its 41st new 52-week high of the past 12 months yesterday at $77.54. Launched on Aug. 7, 2018, yesterday’s new 52-week high was also its highest level since inception nearly seven years ago.

The ETF tracks the performance of the Morningstar Canada Target Market Exposure Index, which comprises stocks traded primarily on the Toronto Stock Exchange. As of March 1, 2025, the stocks in the index ranged from  $2.3 billion to $173.0 billion. 

I’m Canadian and happy to see Canadian stocks doing better. However, Canadian stocks have historically underperformed U.S. stocks, so you don’t want to be too overweight in BBCA. 

For example, over the past five years, the S&P 500 is up 101%, 18 percentage points higher than BBCA. But in the last 12 months, BBCA is up 15.3%, 365 basis points higher than the index, so it’s time to shine is now. 

BBCA’s $8.03 billion net assets are invested in 76 Canadian stocks. Not surprisingly,  the top three sectors by weight are financials (36.9%), energy (16.1%), and industrials (13.0%). Canada has always been overweight in financials and energy stocks.  

Its top 10 holdings include Canada’s Big Five Banks, a railway, Shopify (SHOP), and one of my favorite companies anywhere, Brookfield Corp. (BN), one of the world’s largest alternative asset managers and investors.

If you believe that U.S. stocks might struggle in the next 12-24 months, BBCA is an excellent alternative.