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4 Country ETFs That Beat the Market in September

Sweta Killa

The month of September proved to be good for the global stock market with the MSCI’s all country world index, which tracks around 2,700 stocks in 49 countries, up 2.5% last month. The gains were attributable to positive trade developments and global cheap money flows.

President Donald Trump delayed the next planned tariff increase of 5% on $250 billion of Chinese goods by two weeks from Oct 1 to Oct 15 as “a gesture of goodwill” on account of the 70th anniversary of the People’s Republic of China on Oct 1. Meanwhile, Beijing has moved to increase imports of American soybeans, pork and other farm products. Both parties have showed a willingness to break the deadlock and are expected to resume talks on Oct 10-11 (read: SOYB ETF in Focus as China Allows New Waivers on U.S. Soybean).

Meanwhile, major central banks across the globe are also taking steps to prop up slowing economic growth that have eased global recession concerns and in turn lifted investors’ confidence. However, protest in Hong Kong and trade uncertainty continued to weigh on the stocks.

While there have been winners in many corners of the world, we highlight four top-performing country ETFs that beat the market in the last quarter. Any of these could be excellent plays for investors seeking to ride out the current market concerns:

iShares MSCI Turkey ETF TUR

Turkish stocks were on a tear last month buoyed by back-to-back massive rate cuts and optimism over bank reforms. The central bank lowered interest rates from 19.75% to 16.5% followed by interest rates cut from 24% to 19.75% in late July. The Turkey ETF was up 10.7% last month and follows the MSCI Turkey IMI 25/50 Index. It holds 47 stocks in its basket with a modest concentration on the top firms. The product has amassed an asset base of $348.1 million and charges 59 bps in fees per year from investors. Volume is solid at 715,000 shares a day on average (read: Turkey ETF Beats S&P 500 in the Past Month: Here's How).

Global X MSCI Pakistan ETF PAK

Pakistan ETF has strengthened on bargain hunting. Additionally, it seems that the monetary tightening cycle in Pakistan has ended and currency risk has substantially subsided. As a result, PAK gained 10.5% in September. It provides investors access to the 32 largest, most-liquid companies in Pakistan by tracking the MSCI All Pakistan Select 25/50 Index. It has a lower level of $37.7 million in AUM and charges 87 bps in fees and expenses. The ETF trades in lower volumes of about 51,000 shares and has a Zacks ETF Rank of #4 (Sell) with a Medium risk outlook.

Columbia India Consumer ETF INCO

India ETFs received a boost from a number of reforms, including interest rates cut, corporate tax cuts and scrapped tax on global funds. While most of the India ETFs have gained, INCO led the way higher gaining 9.2%. This ETF targets the consumer industry of India and follows the Indxx India Consumer Index. It holds 31 stocks in its basket with none accounting for more than 6.73% share. From a sector look, automobiles occupies the top position with 26% share while personal goods, food products and auto components round off the next three places with double-digit exposure each. The product has amassed $112.9 million in its asset base and charges 75 bps in annual fees. It trades in lower volume of 16,000 shares a day and has a Zacks ETF Rank #3 with a Medium risk outlook (read: India ETFs to Tap on Corporate Tax Cuts).

WisdomTree Japan Hedged SmallCap Equity Fund DXJS

Japan stocks soared following the deal with the United States and hopes of further stimulus with DXJS being the biggest winner climbing 7.8% last month. With AUM of $59.1 million, this ETF offers exposure to the small-cap segment of Japan’s equity market while hedging exposure to fluctuations between the U.S. dollar and the yen. It follows the WisdomTree Japan Hedged SmallCap Equity Index. The fund trades in solid volume of 10,000 shares per day and charges 58 bps in annual fees. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Japan ETFs Rally on BoJ's Hints of Easing in October).

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