Part III: Top 20 ETFs Under $20

Continuing with our list of the top 20 ETFs under $20, we reiterate the usual caveats of an ETF's potential to move above $20 and it's volatility as it pertains to short-term trading are key factors in building this list. Unfortunately, the current market environment has seen to it that the list of ETFs trading under $20 has grown, providing us with more candidates for this list, but also more funds to steer clear of in this tough market setting. That means some of the long inverse ETFs featured on today's list will probably offer better prices in the coming days than they currently offer and there is no need to rush into these funds right this minute. 1) Direxion Daily Real Estate 3X Bear Shares DRV: As of this writing, DRV is still under $20, although only by about 85 cents. With immense pressure on financial services stocks of all stripes,, DRV's days as a sub-$20 ETFs are numbered. Frankly, the condition won't last until to the end of this week. DRV is everything a trader wants in a leveraged inverse ETF and is one of the ideal plays for the current market environment. 2) PowerShares DB Base Metals Short ETN BOS: BOS is another example of an inverse play that isn't far removed from $20 and one that probably won't be below that watermark much longer. And as is the case with DRV, there are ample negative catalysts out there that translate into positives for BOS. 3) First Trust ISE-Revere Natural Gas Index Fund FCG: FCG certainly fits the bill as a sub-$20 ETF that investors can wait to the pull the trigger on. As energy stocks have taken it on the chin recently, FCG's chart has gone from bad to worse. However, there are some positives to consider with FCG. Short-term traders can warm up to an ETF with some decent volatility while more patient investors can put FCG on their watch lists now and wait for a better entry point in the coming weeks as FCG is a viable buy-on-the-dip candidate. 4) iShares MSCI Japan Index Fund EWJ: Two schools of thought on EWJ because, at this point, it's difficult to say this is a good ETF. First, volatility here has risen enough that this now sub-$10 ETF can pack a decent punch for short-term traders. Second, deep value players should include EWJ on their “maybe later lists.” EWJ's biggest problem is that Japan's pain train is showing no signs of leaving the station anytime soon. 5) ProShares UltraShort Yen YCS: As a double leveraged inverse ETF, YCS is usually good for some exciting short-term swings. These days, those moves are to the downside as the search for safe havens has pushed the yen higher, endangering Japan's already fragile export-driven economy along the way. If the Bank of Japan could actually force the yen lower, YCS becomes a more valid two- or three-day trade.