Getting international diversification via ETFs can help give investors equities exposure to areas responding differently to the Covid recovery. Fortunately, VanEck has three single country funds that are outperforming to start 2021.
From Epicenter to Growth Leader
First up is the VanEck Vectors China Growth Leaders ETF (GLCN), which is up 6% in the early going for 2021. GLCN seeks to replicate the price and yield performance of the MarketGrader China All-Cap Growth Leaders Index.
The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index and/or in investments that have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise its benchmark index. The index is comprised of Chinese equity securities that are generally considered by the index provider to exhibit favorable fundamental characteristics according to its proprietary scoring methodology.
Russia and Egypt in Recovery Mode
Another fund to consider is the VanEck Vectors Russia Small-Cap ETF (RSXJ), which is up about 6% for the year. RSXJ seeks to replicate the price and yield performance of the MVIS® Russia Small-Cap Index.
The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index. The index includes securities of Russian small-capitalization companies. It will normally invest at least 80% of its total assets in securities of small-capitalization Russian companies.
RSXJ gives investors:
- A Small Cap Focus: Small caps may offer greater exposure to domestic growth, less exposure to global cyclicals.
- Value Opportunity: Russia’s equity market is currently offering deep discounts when compared to other emerging markets.
- A Pure Play: Fund companies must be incorporated in or derive at least 50% of total revenues from Russia to be added to the index.
Lastly, there’s the VanEck Vectors Egypt Index ETF (EGPT), which is also up about 6%. EGPT seeks to replicate the MVIS® Egypt Index.
The index includes securities of Egyptian companies that include small caps and mid caps. A company is generally considered to be an Egyptian company if it is incorporated in Egypt or is incorporated outside Egypt but has at least 50% of its revenues/related assets in Egypt.
EGPT gives investors access to:
- The Nation’s First ETF Focused Exclusively on Egypt: Convenient access to the third-largest economy in Africa.
- All-Cap Exposure: With mid- to small-cap tilt.
- A Pure Play: Companies must be incorporated in, or derive at least 50% of total revenues from Egypt to be added to the index.
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