Trading Turkey: ETF PowerRatings Strategies for Short Term Traders
Wouldn’t it figure that on the eve of Thanksgiving, one of the highest rated country exchange-traded funds (ETFs) is the iShares MSCI Turkey Investable Markets Index ETF
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PowerRating)?
TUR earned a PowerRating of 9 as of the close on Tuesday. This put TUR in an exclusive list of exchange-traded funds which, according to our research on ETFs going back to 2003, have made significant short term gains more than 77% of the time.
Click here to learn more about ETF PowerRatings.
What is all the more interesting about TUR is the fact that the fund is a country ETF. To learn why this is important, you can read the whole story here. For now, know that when it comes to rallying from short term oversold conditions – when ETF PowerRatings in a variety of exchange-traded funds are at their highest – our research going back to inception for most widely-traded ETFs shows that country-based exchange-traded funds have outperformed sector-based ETFs (which, by the way, have tended to outperform commodity-based ETFs).
Speaking of sectors, TUR is more than 50% financial services, with telecommunications and industrial stocks sharing a distant third of the fund’s sector weighting.
TUR is not alone among country ETFs with high ETF PowerRatings. The iShares MSCI Australia Index Fund ETF
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PowerRating), for example, has an ETF PowerRating of 8. 8-rated exchange-traded funds have performed comparably to 9-rated ETFs in our testing, which included thousands of simulated ETF trades going back to 2003.
Many high ETF PowerRatings funds don’t represent a single country, but instead represent an entire region like Latin America or an international sector like emerging markets. An example of this sort of exchange-traded fund, which has also pulled back in recent days and earned an ETF PowerRatings upgrade to 8 in the process, is the Vanguard Pacific ETF
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VPL’s tracks the MSCI Pacific index of stocks from countries such as New Zealand, Japan, and Singapore. VPL’s heaviest concentration by sector is in financial services and industrial materials.
Isn’t it time you gave PowerRatings a try? Our top-rated ETFs have been correct nearly 80% of the time since 2003. Click here to launch your free, 7-day trial to our ETF PowerRatings today!
David Penn is Editor in Chief at TradingMarkets.com.