ETFdb.com is recommending a new long position for the month ahead. This long recommendation is meant to serve as a trend reversal anticipation position that could offer handsome returns if the broad market shows signs of a bottom in the coming weeks. Below, we outline our investment thesis and outlook for the new recommendation.

This position is motivated by lingering fundamental uncertainty that may be fully discounted into the price along with encouraging momentum in recent days.

The new long recommendation is based around:

  • Emerging Asia Pacific Equity ETF that is in green territory for the past 4 weeks, up over 10%, but still down nearly 30% year-to-date.
  • This ETF holds approximately 75 equities and is quite top-heavy as the top 10 holdings account for almost 60% of the total portfolio.
  • The underlying holdings are mostly large-caps, about 50%, while mid-caps make up the next biggest allocation at around 30%.
  • Despite its rocky performance thus far in 2018, this ETF still has inflows of $223M year-to-date of which $40M came in the past month.

Be sure to click here to review our previous sell pick.

Popular Articles

Active ETF Channel

Why Now's the Time for Active Management

Passive, index-based ETFs help investors track the markets, but they lack the ability to adjust...

China Insights Channel

Does China’s Self-Reliance Hurt Foreign Investments?

China has been increasingly pushing to be self-reliant in several industries as President Xi...

Active ETF Channel

For Max Benefit Add Active Funds to a Passive Portfolio

It’s an ongoing debate amongst advisors as to whether active or passive funds are better, with...


Content continues below advertisement