As the U.S.-China trade war begins to look more and more like a protracted affair, it means investors will be sensitive to any sliver of positive news. On Thursday, U.S. President Donald Trump said trade talks with China are set to take place “at a different level.”
Whether this is a good sign or bad sign, the former can certainly give U.S. equities a boost.
“There’s a talk scheduled for today at a different level,” Trump said in an interview with Fox News Radio without elaborating on what “a different level” means.
“Let’s see what the end product is; that’s what you have to judge it by,” Trump said.
Trade tensions took a turn for the worse last week when both the U.S. and China barraged each other with new tariffs. However, China did soften its stance Thursday saying it’s willing to resolve the trade war with a “calm attitude.”
“China has plenty of means for countermeasures, but under the current situation, the question that should be discussed right now is about removing the U.S.′ new tariffs on $550 billion in Chinese goods to prevent escalation of the trade war,” Gao Feng, spokesman for China’s Ministry of Commerce, said Thursday.
Investors looking to play the trade wars can look to relative value exchange-traded funds (ETFs) that focus on U.S. and international equities.
For investors who may be sensing continued upside in U.S. equities over international equities, the Direxion FTSE Russell US Over International ETF (NYSEArca: RWUI) offers them the ability to benefit not only from domestic U.S. markets potentially performing well, but from their outperformance compared to international markets.
RWUI features:
- Seeks investment results, before fees and expenses, that track the Russell 1000®/FTSE All-World ex US 150/50 Net Spread Index (the “index”).
- The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities that comprise the Long Component of the index or shares of exchange-traded funds (“ETFs”) on the Long Component of the index.
- The index measures the performance of a portfolio that has 150% long exposure to the Russell 1000® Index (the “Long Component”) and 50% short exposure to the FTSE All-World ex US Index (the “Short Component”).
For investors sensing continued upside in U.S. equities over international equities, the Direxion FTSE Russell US Over International ETF (NYSEArca: RWUI) offers them the ability to benefit not only from domestic U.S. markets potentially performing well, but from their outperformance compared to international markets.
For more relative market trends, visit our Relative Value Channel.