Time To Buy ETFs Officially In A Bear Market (SOCL, TAN, FB, TWTR, FSLR)

The loose definition of a bear market is a 20 percent move to the downside.

A correction is typically considered a 10 percent pullback in the price of the asset or index.

The S&P 500 has not come close to either situation recently and has not had a 10 percent pullback in over two years.

The same cannot be said for a handful of ETFs that have been hurt by the selling of the high-flying technology and momentum stocks.

Two ETFs in particular are in niche sectors that could be considered cutting edge as they deal with technologies that are still emerging. After big pullbacks it may be time to start considering buying into the ETFs below as long-term investments.

The Global X Social Media ETF SOCL is a basket of 27 stocks that are in some way tied to the social media space, either through social networking, file shares, or other web-based applications.

The top holdings are Tencent Holdings, Facebook FB, LinkedIn LNKD, Sina Corp SINA, and Zynga ZNGA. Both Tencent Holdings and SINA are based in China, with the other three headquartered in the U.S.

The ETF is down 26 percent from a March 6 high and this week hit the lowest level since last July. The selling comes after a strong 2013 where the ETF was up 64 percent. Technically the ETF does not have strong support in the current area, but the rapid sell-off has caused it to be oversold in the near-term.

See also: Municipal Bond and Emergin Market ETFs Lead Fixed-Income Peers

Earnings this week from the sixth largest holding, Twitter TWTR, could be enough to help push the entire sector higher. Longer-term the sector appears to have a strong future, however there will be winners and losers and the ETF can help give exposure to the entire sector.

The Guggenheim Solar ETF TAN was down as much as 23 percent from its March high because attempting to bounce back in the last two weeks.

The basket of 30 stocks has 42 percent of its assets in the U.S., followed by 25 percent in China and 16 percent Hong Kong. The top three holdings include First Solar FSLR, SunEdison SUNE, and GT Advanced Technologies GTAT.

A recent downgrade of several Chinese solar stocks by Credit Suisse put pressure on the sector, however several other analysts have been coming out with bullish calls on the sector.

As the price to implement solar for commercial and residential use continues to fall the technology will see an increased demand. Add that to the rising cost of traditional energy and the long-term outlook for the sector is bright (pun intended).