Certain exchange traded funds (ETFs) mangled in hard times right now could just turn out to be diamonds in the rough. What are they?

As the market continues to flounder, the meticulous and perceptive investor may have noticed that there are bargains to be had on broader based indexes, writes Gary Gordon for ETF Expert. It is noted that some ETF “themes” may catch on and garner more attention when the markets recoup.

Japan. It’s the world’s second largest economy, and it’s struggling with faltering exports and low domestic consumer confidence. But a looming shift in demographics could place Japanese consumers smack in the middle of their peak spending years: 2009-2018.

Once things begin looking up again, Japan-focused ETFs to watch are:

• iShares MSCI Japan Fund (EWJ) for its large companies.

• WisdomTree Small Cap Japan Fund (DFJ) for smaller corporations that may improve more quickly.

• NETS TOPIX Index Fund (TYI) for the purists.

Telecom. Stocks have lost 50% of their values in 2008 but now they collectively have the lowest price of any economic section. Shares Dow Jones Telecom Fund (IYZ) and iShares Global Telecom Fund (IXP) both are seen as having potential opportunities for long-term investment in the next decade or so.

Shipping. The sector may be considered risky with the ETF Claymore Delta Global Shipping Index Fund (SEA) plummeting more than 50% since its introduction in September, but the those who look at the big picture will recognize that worldwide trade still relies on the shipping industry. When the markets eventually turns around, shipping will once again gain strength as countries export and import goods.

Tags: Asia, DFJ, EWJ, Global ETFs, IXP, IYZ, Japan, SEA, Sector ETFs, Shipping, Telecommunications, TYI