The value factor is outpacing growth so far in 2021. Add momentum to the mix to get funds like the First Trust Dorsey Wright Momentum & Value ETF (DVLU) . DVLU seeks investment results that correspond generally to the price and yield of an index called the Dorsey Wright Momentum Plus Value Index.
The U.S. dollar continues to confound investors with its bullish tone in the face of record-low interest rates. This is requiring European equities investors to hedge the euro, a strategy available to investors with the Xtrackers MSCI Europe Hedged Equity ETF (DBEU) and Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ) .
A bullish sentiment could be fueling a stronger demand for Chinese equities in 2021. ETF provider DWS offers several funds to satiate appetites for high-quality A-shares and broader equity exposure in China. Check out these the funds below: Xtrackers CSI 300 China A-Shares ETF (NYSEArca: ASHR) : seeks investment results that correspond to the CSI 300 Index.
With dividends firming up and equities taking off, it may be wise to consider a small hedge with the Hedged Dividend Income ETF (NYSEArca: DIVA) , an ETF that can help reduce dividend equity risk. DIVA tracks the INDXX Hedged Dividend Income Index, which is designed to deliver a strong current yield capital appreciation potential with a risk profile similar to a corporate bond index, according to AGFIQ .
You can bet that Europe is keeping an eye on what the markets are doing in the U.S. The hope is that a vaccine rally can continue to power equities through the rest of 2020. With optimism and a renewed risk-on sentiment running rampant in the global capital markets, including Europe, it’s still wise to keep those currencies hedged in these volatile times
In the meantime, for ETF investors looking to get exposure to Brazil as a potential bargain should the country stage a comeback in 2021, here are two funds to consider with varying strategies and market caps: iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) : EWZ seeks to track the investment results of the MSCI Brazil 25/50 Index, which consists of stocks traded primarily on B3 (the largest Brazilian exchange).
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVISÂ® Brazil Small-Cap Index.