The Warren Buffett indicator also known as the market cap to GDP ratio has popped up to its highest level in history, jumping above levels observed from the dot com bubble, the global financial crisis, and the recent 2022 bear market.

As of Friday, July 5, the ratio topped 196%, which is notably higher than the 138.4% level observed during the dot com bubble peak. Furthermore, it’s also higher than the recorded 106.9% level which was observed back in October 2007 during the housing crisis.

For reference, the Buffett indicator is a calculated metric that compares the total market capitalization of all U.S. publicly traded stocks represented by the Wilshire 5000 index to the Gross Domestic Product of the U.S. The ratio provides insight into how the stock market is valued relative to the overall economy, which in turn helps market participants gauge overall sentiment and potential investment opportunities.

If the indicator acts anyway as a precursor to a downward move in the overall marketplace, traders and investors may then look to keep a close eye on index tracking exchange traded funds along with the price action of U.S. Treasury yields, as the two will undoubtedly see volatile moves.

Outlined below are a handful of benchmark tracking ETFs, along with a group of Treasury ETFs that market participants can further monitor.

Market Tracking ETFs: (NYSEARCA:DIA), (DDM), (UDOW), (DOG), (DXD), (SDOW), (NYSEARCA:SPY), (VOO), (IVV), (RSP), (SSO), (UPRO), (SH), (SDS), (SPXU), (NASDAQ:QQQ), (QQQM), (QLD), (TQQQ), (QID), and (SQQQ).

Treasury ETFs: (TLT), (TLH), (IEF), (IEI), (SHY), (SGOV), (SCHO), and (BIL).