Perfectly Timed China Play
The No. 3 on our list, CHAD, is an interesting success story to the extent that it’s an inverse fund. Often, these types of leveraged strategies are reserved for the more professional, trading-type of investor.
But CHAD was masterful at timing. The ETF came to market in the same month the massive 30-percent-plus correction began to take shape in China’s mainland stock market, which had rallied more than 100 percent in 12 months.
Many had been saying a correction in China was just a matter of time, and when it hit, there was CHAD ready to offer ETF investors an easy way to play the downside.
CHAD is also a first-to-market. Prior to it, there was no inverse play on China’s A-shares market.
Currency Hedging & Europe Still Hot
If 2015 has proven to be anything, it’s the year of currency hedging. Thanks in great part to WisdomTree’s leadership in offering currency-hedged international equity funds, ETF investors today are more aware then ever of the impact of currency exposure in their foreign stock portfolios.
EUSC is WisdomTree’s newest member of a growing roster of ETFs designed to mitigate the impact of currency on international stock holdings. FXEU, from PowerShares, is riding that same wave.
Both funds offer access to European equities, and not only deal with the currency factor, but in FXEU’s case, it adds factor investing—low volatility—to the strategy. These are timely themes made popular by the ongoing economic renaissance taking shape in Europe and a strong dollar that is showing no signs of weakening.
Riding Markets For A Lower Price
Finally, there’s PTLC. The ETF is one of three ETFs that Pacer Financial brought to market in June, each designed to toggle between equity coverage in rising markets, short-dated Treasurys exposure when markets pull back and a 50/50 blend when markets are in between. In PTLC, the changes in allocation are determined by technical analysis.
Perhaps what has made PTLC so popular is the fact that it’s cheaper than other similar products in the market today. It comes with a 60 percent expense ratio, or $60 per $10,000 invested.