Top & Flop Zones Of Q3 And Their ETFs

The global stock market continued its bull run in Q3, dodging all concerns regarding Brexit, North Korea, instability in the world’s largest economy and overvaluation. The prospect of a tighter monetary policy by major central banks also tried to block the bulls.

However, strong corporate earnings, rise in metal prices, a pickup in economic activity in many parts of the world, an impressive rally in emerging markets and a weak dollar are propelling the stocks higher.

Given this, most corners of ETF investing have performed exceptionally well while a few areas are lagging. Below, we have highlighted the best and worst zones of Q3 and their ETFs in detail per xtf.com:

Top Zones

Brazil

Brazilian stocks have been on a tear with Global X Brazil Consumer ETF (BRAQ - Free Report) topping the best-performing ETF list with 43.5% gains. The economy has emerged strongly from its two-year worst recessions and is currently on an impressive growth path with stronger consumption, increasing investments and rising consumer confidence. This has led investors to bet on the economy.

The fund offers exposure to a basket of 35 stocks that operate within the consumer discretionary and consumer staples’ sectors in Brazil. It tracks the Solactive Brazil Consumer Index, charging investors 77 bps in annual fees. The product has been able to manage just $7.3 million in its asset base and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Brazil Economy on a Roll: ETFs to Cash In On).

Commodity Producers

VanEck Vectors Rare Earth/Strategic Metals ETF (REMX - Free Report) , which offers exposure to companies engaged in producing, refining, and recycling of rare earth and strategic metals and minerals, is on fire this quarter, gaining 43.4%. The impressive rally came on the back of an expected boom in the demand for rare earth minerals. Additionally, China, which produces over 90% of the world's rare earths, has set production caps and export quotas on the metals, which has contributed to price rise.

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