It’s obvious that the coronavirus delivered a piledriver to stocks, but investors, for the most part, have been resilient. Rather than selling off in a market frenzied panic, a solid majority of investors have been leaving their stock market portfolios untouched—does this portend to the confidence that U.S. equities will bounce back accordingly?
Per a recent CNBC report, “66% of US adults with retirement or investment accounts have intentionally done nothing with those stock-related investments, according to a Bankrate survey released Tuesday. The survey took place online between March 20-24 and included nearly 2,500 adults, about half of whom had investment accounts.”
With all the red investors have been seeing as of late, it seems that people have been ditching stocks quicker than one could imagine. However, Bankrate’s data tells a different story.
“Two out of every three households with retirement or investment accounts stood pat and did not make any changes to their stock-related holdings,” Greg McBride, chief financial analyst of Bankrate, said in a statement. “They’re not bailing on stocks despite an unprecedented drop of more than 30% at the time of polling.”
If investors can stay resilient through the rest of 2020, it creates an opportunity for investors to capitalize on the Direxion FTSE Russell US Over International ETF (NYSEArca: RWUI).
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 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”).
Investors looking to play the other side can use the Direxion FTSE International Over US ETF (NYSEArca: RWIU) to capitalize on international equities will outdoing U.S. equities. RWIU seeks investment results, before fees and expenses, that track the FTSE All-World ex-US/Russell 1000 150/50 Net Spread Index, which measures the performance of a portfolio that has 150 percent long exposure to the FTSE All-World ex-US Index and 50 percent short exposure to the Russell 1000® Index.
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