Get Strategic in Today’s Market with 10 Relative Weight ETFs
This article was originally published on ETFTrends.com.
More than ever, investors need to get strategic as trade wars, inverted yield curves and fears of a global economic slowdown weighing on the minds of investors.
There’s a plethora of options available to get defensive, but if an investor can identify significant trends prevailing in the market over other trends, he or she can capitalize on this confirmation bias with single-product efficiency through Direxion’s Relative Weight ETFs:
Developed Markets Versus Emerging Markets
For investors looking for the continued upside in emerging market assets, whether driven by a weakening USD or continued developments around trade, the Direxion MSCI Emerging Over Developed Markets ETF (RWED) offers them the ability to benefit not only from emerging markets potentially performing well, but from emerging markets outperforming developed markets. Conversely, if investors believe that resolutions to the big issues impacting sentiment today are in motion, the Direxion MSCI Developed Over Emerging Markets ETF (RWDE) provides a means to not only see developed markets perform well, but a way to access a convergence/catch-up in performance of DM relative to EM, a spread that has clearly widened over the past 6 months.
Small Cap Versus Large Cap
For investors looking for continued upside in large cap equities over small caps, the Direxion Russell Large Over Small Cap ETF (RWLS) offers them the ability to benefit not only from large cap equities potentially performing well, but from their outperformance compared to their small cap brethren. Conversely, if investors believe that small cap equities will outperform large cap equities, the Direxion Russell Small Over Large Cap ETF (RWSL) provides a means to not only see small cap stocks perform well, but a way to capitalize on their outperformance versus their large cap brethren.
Growth Versus Value
For investors looking for continued upside in growth-oriented equities over value-oriented equities, Direxion Russell 1000 Growth Over Value ETF (RWGV) offers them the ability to benefit not only from growth opportunities potentially performing well, but from their outperformance compared to value. Conversely, if investors believe that value-oriented equities will outperform growth-oriented equities, Direxion Russell 1000 Value Over Growth ETF (RWVG) provides a means to not only see value opportunities perform well, but as a way to capitalize on their outperformance compared to growth.
U.S. Versus International
For investors looking for continued upside in U.S. equities over international equities, the Direxion FTSE Russell US Over International ETF (RWUI) offers them the ability to benefit not only from domestic U.S. markets potentially performing well, but from their outperformance compared to international markets. Conversely, if investors believe that international markets will outperform U.S. domestic markets, the Direxion FTSE International Over US ETF (RWIU) provides a means to not only see international markets perform well, but a way to capitalize on their outperformance compared to the U.S. markets.
Defensive Versus Cyclical
For investors looking for continued upside in U.S. cyclical sectors over defensive sectors, the Direxion MSCI Cyclicals Over Defensives ETF (RWCD) offers them the ability to benefit not only from cyclical sectors potentially performing well, but from their outperformance compared to defensive sectors. Conversely, if investors believe that U.S. defensive sectors will outperform cyclical sectors, the Direxion MSCI Defensives Over Cyclicals ETF (RWDC) provides a means to not only see defensive sectors perform well, but a way to capitalize on their outperformance compared to cyclical sectors.
For more relative market trends, visit our Relative Value Channel.
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