Emerging markets have been doing well, but will that change if interest rates rise?
Is this a good time to invest in convertible securities ETFs?
What about mid-caps?
FundX Chief Investment Officer Jason Browne answered these questions and he shared four ETFs that have done well recently on The Street.
Jason’s Take on 4 Strong Performing ETFs
1. iShares MSCI All Country Asia Ex-Japan (AAXJ)
“The main reason why we’re attracted to this fund is that it gives us exposure to the region, and it’s done well—and it’s actually been doing well with relatively low volatility for a fund that’s fairly aggressive,” Jason said.
2. Vanguard FTSE Emerging Market (VWO)
Some investors are concerned about how higher interest rates might affect emerging markets, but as Jason pointed out, the Fed raised rates last year, and emerging markets have actually done better since then.
“Emerging markets are an area that has underperformed for an extended period, and it may continue to outperform now that it’s come back into favor,” Jason said. “Emerging markets have been a strong place, and VWO gives you nice diversified exposure to that area.”
3. iShares Russell Mid-cap Value (IWS)
“The key theme for this year has been a rotation away from large-cap growth, first into dividend funds and then into mid-caps, especially mid-cap value,” Jason explained, and iShares Russell Mid-cap Value (IWS) was one of the first mid-cap value funds to come up our ranks.
4. SPDR Barclays Convertible Securities (CWB)
“This ETF gives you some exposure to growth companies…and you get a decent yield. It’s an area that’s doing well, and it’s doing well with relatively low volatility given other funds with similar risk.”