The major U.S. indexes are feeling the good vibrations in the markets with third-quarter earnings coming out better-than-expected for the most part and now, a U.S.-China trade deal that is close to finalizing. All this creates an opportunity for investors to capitalize on the Direxion FTSE Russell US Over International ETF (NYSEArca: RWUI).

After high level telephone discussions, the U.S. and China are “close to finalizing” parts of the initial trade agreement agreed upon by the two largest economies on Oct. 11. According to a CNBC report, a U.S. Trade Representative said these talks would continue.

“They made headway on specific issues and the two sides are close to finalizing some sections of the agreement. Discussions will go on continuously at the deputy level, and the principals will have another call in the near future,” a statement said.

Both the U.S. and China are said to be working on the exact language that spells out the details of the Oct. 11 trade deal—Phase 1. U.S. President Donald Trump said the goal is for the first phase of the trade deal to be signed with China President Xi Jinping next month at a Chile summit.

“They want to make a deal very badly,” Trump told reporters at the White House last Friday. “They’re going to be buying much more farm products than anybody thought possible.”

RWUI offers investors 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 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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