Market In Correction: 5 ETFs Surviving The Slump

The ETF is actively managed and seeks capital appreciation by taking short positions in a number of U.S. listed companies with low earnings quality or aggressive accounting practices. The managers will look to identify earnings-driven events that could lead to price declines such as downward earnings revisions or reduced forward guidance – the two factors that can spell trouble for a company. These securities with potentially weak fundamentals will underperform in a crumbling market, thereby resulting in strong profits for the fund. HDGE has amassed $138.3 million in its asset base and is a bit pricey, charging 2.72% in annual fees. It has gained nearly 14% over the past three months.

Market Vectors Gold Mining ETF (GDX - Free Report)

Gold generally acts as a store of value and hedge against market turmoil. Acting as a leveraged play on the underlying metal prices, metal miners tend to experience more gains than their bullion cousins in a rising metal market. As such, the ultra-popular GDX, having AUM of $9.7 billion, surged nearly 12% in three months. The fund follows the NYSE Arca Gold Miners Index, holding 48 stocks in its basket. Canadian firms account for half of the portfolio, while Australia (16.8%) and the United States (16.4%) round off the top three. The fund charges 53 bps in annual fees.

Invesco DWA Utilities Momentum ETF (PUI - Free Report)

Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil. This fund offers exposure to 31 companies that are showing relative strength (momentum) and tracks the DWA Utilities Technical Leaders Index. Electric utilities and multi-utilities account for 39.1% and 25% of assets, respectively, while gas utilities round off the next spot with double-digit exposure. The ETF charges 60 bps in annual fees and has AUM of $118 million. It has climbed 7.1% in the same time frame and carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

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