The best ETF to follow is one that tracks all assets classes around the world and tells you the state of the world along with the U.S. Last year this ETF was straight up but not so much this year.
The iShares S&P Growth Allocation ETF (AOR) is the ETF mentioned. The largest weighting in AOR tracks U.S. Bonds and is 33% of the mix. Then the S&P 500 is 29.56%. So these two account for 62.56%.
The only other weighting above 20% is International Equity that makes up 22.10%. Then there are six other ETFs that round out the mix. For a full breakdown click here.
All U.S. equity indexes are above their January high but AOR is not. This needs to be watched closely if we are going to get more excited about stocks into year end.