Contrarian ETF Plays to Go Against the Grain

Investors can also gain exposure to these areas through diversified ETFs. For instance, a more optimistic outlook has helped the CurrencyShares British Pound Sterling Trust (NYSEArca: FXB) and iShares MSCI United Kingdom ETF’s (NYSEArca: EWU) rally on Wednesday. U.K. assets strengthened Wednesday after a Ipsos Mori survey revealed growing sentiment for the United Kingdom to remain with the European Union in the upcoming so-called Brexit vote.

The iShares MSCI Japan ETF (NYSEArca: EWJ) has been languishing as the Bank of Japan disappointed investors by standing pat on its monetary policy. However, further accommodative measures could help revive the trade, especially currency-hedged ETFs like the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ), iShares Currency Hedged MSCI Japan ETF (NYSEArca: HEWJ) and Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP).

Related: BOJ Speculation Revives Currency-Hedged Japan ETF Trade

The technology sector has fallen out of favor this year as investors turned away from growth names and previous high flying FANGs – Facebook (NasdaqGS: FB), Apple (NasdaqGS: AAPL), Netflix (NasdaqGS: NFLX) and Alphabet (NasdaqGS: GOOG). Nevertheless, contrarians seeking broad exposure to the space have a number of options, including Technology Select Sector SPDR (NYSEArca: XLK), Vanguard Information Technology ETF (NYSEArca: VGT) and iShares U.S. Technology ETF (NYSEArca: IYW).

Related: 46 Tech ETFs to Tap Into Big Growth Names

Industrials may also do better during the late economic cycle. Broad sector options include Industrial Select Sector SPDR (NYSEArca: XLI), Vanguard Industrials ETF (NYSEArca: VIS) and iShares U.S. Industrials ETF (NYSEArca: IYJ).

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