If you look at the performance reports, there is so much red, it looks like a sea full of chum. Times for exchange traded funds (ETFs) are a-changin'. What worked for your portfolio in 2007 isn't necessarily going to work now. 

A case in point is the iShares FTSE/Xinhua China 25 Index (FXI [1]). Last year, the fund was up 53.3%. Recently, it declined 30% off its high.

ETF investors should be reassessing their portfolios now. If you're holding onto those top performers from last year, it's time to implement that exit strategy: if a fund drops more than 8% of its high or dips below its 200-day moving average, it's time to let it go.

It's clear that we're hurting on a global scale now. Where do investors go? Despite from the looks of things, there are still a number of places to turn.

A quick review of the top-performing funds so far for 2008 tell a pretty big story: inverse ETFs make up the top 24 spots on Morningstar's list. The first long ETF to appear on the list holds the 25^th spot - the PowerShares Financial Preferred (PGF [2]), made up of preferred financial stocks from all over the world. Year-to-date, it's up 13.6%.

The top-performing fund, overall, is the MACROshares Oil Down Tradeable Shares (DCR [3]), which is technically not an ETF [4]. Regardless, DCR has performed strongly so far this year, up 42.3%.

A number of other funds are that are bucking the overall downward trend, too. Let's have a look:

PowerShares DB Agriculture (DBA [5]), up 11.3%

B2B Internet HOLDRs (BHH [6]), up 11.3%

iShares S&P U.S. Preferred Stock Index (PFF [7]), up 7%

PowerShares DB Silver (DBS [8]), up 9.4%

iShares Silver Trust Report (SLV [9]), up 8.4%

ETF investors should be reassessing their portfolios now. If you're holding onto those top performers from last year, it's time to implement that exit strategy: if a fund drops more than 8% of its high or dips below its 200-day moving average, it's time to let it go.

Disclosure: Some of Tom Lydon's clients own shares of DBA. 

www.etftrends.com [10]