6 Equity ETFs Surviving The Market Correction

This week was marked by heighted volatility, especially due to rise in the number of coronavirus cases across the globe. The rising pandemic fears sent the global stock markets in doldrums, pushing the major indices around the world in correction territory (a fall of 10% or more from the recent peak). Notably, the S&P 500 saw the fastest correction in history with six consecutive days of decline after hitting new record highs last week.

The rapidly spreading virus has resulted in more than 2,800 deaths and has infected about 83,000 worldwide. This has sparked concerns about its long-term economic impact on trade, ports, supply chains and consumer confidence. In particular, a growing number of companies have warned that the epidemic will prevent them from meeting sales or profit targets for the first three months of the year. As such, the outbreak will likely derail global economic growth and corporate profits (read: Go Defensive With These ETFs as Stock Rout May Worsen).

Per International Monetary Fund, the outbreak could reduce global economic growth by 0.1% this year. Goldman now expects zero growth in profits in 2020, citing reduced economic activity in China and the United States, reduced demand for American exports, supply chain disruptions and increased uncertainty. Market sentiments got even worse after the Centers for Disease Control and Prevention warned that the outbreak “might be bad,” and that Americans should prepare for the possibility of disruptions.

Amid the virus scare, there are still winners in many corners of the market that are easily surviving the slump. Below we have highlighted six ETFs from different corners of the market that have traded in the green over the past week and are likely to continue doing so should the trends prevail.

AdvisorShares Dorsey Wright Short ETF DWSH – Up 16.4%

With a steep decline in the stock market, this ETF climbed as it adds alpha to an investment portfolio, especially during a bear market. DWSH is an actively managed ETF that short sells U.S. large-cap securities with the highest relative weakness within an investment universe primarily comprising large-capitalization U.S.-traded equities. It holds 100 stocks in its basket and chares higher annual fee of 3.07%. The product trades in lower average daily volume of 49,000 shares and has accumulated $59.4 million in its asset base (read: Wall Street Crashes: 5 Defensive ETFs to Your Rescue).

Xtrackers Harvest CSI 500 China-A Shares Small Cap Fund ASHS – Up 1.6%

ASHS offers direct exposure to small-cap China A-share equities and follows the China Securities 500 Index. Holding 502 stocks in its basket, it is widely spread across components with none holding more than 1.04% of the assets. The product is often overlooked by investors as depicted by AUM of $38.7 million and an average daily volume of around 29,000 shares. The product charges 65 basis points (bps) in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Principal U.S. Small-MidCap Multi-Factor Core Index ETF PSM – Up 1.3%

This ETF follows the Nasdaq US Small Mid Cap Select Leaders Core Index, which uses a quantitative model designed to identify equity securities of companies in the Nasdaq US Small Cap Index and Nasdaq US Mid Cap Index that exhibit potential for high degrees of sustainable shareholder value, growth and strong momentum. It holds 616 stocks in its basket with each accounting for no more than 0.71% of assets. The fund has $10 million in AUM and charges 20 bps in annual fees. It trades in meager volume of under 100 shares (read: 10 Inverse ETFs That Gained More Than 30% Over the Past Week).

Eaton (NYSE:ETN) Vance Stock NextShares EVSTC – Up 1.2%

This is an actively managed ETF that seeks long-term capital appreciation by investing in a diversified portfolio of equity securities. With AUM of $6.4 million, it holds 59 stocks in its basket with none making up for more than 5.1% share. The fund charges 65 bps in annual fees from investors and trades in meager volume of under 500 shares.

The Core Alternative ETF CCOR – Up 0.7%

This actively managed ETF aims to produce capital gains while reducing risk exposure across market conditions. It invests primarily in U.S. equities, specifically focusing on high-quality companies across all industries and sectors that have prospects for long-term total returns as a result of their ability to grow earnings and willingness to increase dividends over time. The ETF holds 47 securities in its basket and charges a high expense ratio of 1.23%. CCOR has accumulated $118.8 million in its asset base and trades in paltry volume of 18,000 shares.

ProShares S&P Technology Dividend Aristocrats ETF TDV – Up 0.3%

This fund follows the S&P Technology Dividend Aristocrats Index, offering exposure to well-established, technology-related companies that have consistently raised their dividends for at least seven years. Holding 34 stocks in its basket, it is well spread across components with none accounting for more than 3.5% of assets. The ETF has amassed $24.7 million in its asset base and trades in volume of more than 2,000 shares a day on average. It charges 45 bps in annual fees (read: Guide to 10 Most Popular Dividend ETFs).

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Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS): ETF Research Reports

Core Alternative ETF (CCOR): ETF Research Reports

Eaton Vance Stock NextShares (EVSTC): ETF Research Reports

AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports

Principal U.S. Small-MidCap Multi-Factor Core Index ETF (PSM): ETF Research Reports

ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports

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