Consider one of these 3 stock ETFs for the current uncertainty:
iShares MSCI Chile
. Near the U.S. market's lowest ebb in 2010, I penned a feature on July 2 entitled, "
5 Reasons To Choose The Chile ETF Before Getting Another U.S ETF
One of those reasons included Chile's status as a creditor nation, not a debtor nation. Another reason was the fact that ECH carried less standardized risk than the U.S. market carried.
Indeed, the same circumstances exist today. Moreover, ECH is not entirely dependent on Chilean natural resources, but rather, it has a high weighting in several less volatile sectors (e.g., 22.6% utilities, 14.15% consumer Staples, etc.).
PowerShares Technical Leaders
. This ETF rebalances each quarter to reflect relative strength trends with enviable results.
It has gains over five days, one month, three months, six months and one year and a 26.5% return over that one-year period. By contrast, the
S&P 500 SPDR Trust
boasts only 10.5%.
You might also appreciate PDP's presence in the 80th percentile on relative strength across all exchange-traded vehicles. PDP is also above its 50-day trendline and its 200-day trendline.
iShares Russell MidCap Growth
. If you believe that the European mess will drag on a bit longer, the euro would struggle against the dollar and make U.S. stocks relatively "safer."
If you're going to swing that direction and if for no other reason that you shouldn't keep everything in Emerging Market ETFs or cash, you should go with the premier "style."
At the moment, mid-cap growth has the largest 6-month gains and the highest relative strength ranking. Simply put, mid-sized companies have been in the sweet spot, while growth has dramatically outperformed value.
Readers Also Like: