The relative strength index (RSI) metric can help investors quantify how strong momentum is for an exchange traded fund (ETF). When looking at Global X’s suite of ETFs, three funds are seeing strong RSI momentum.
Right now, all of the funds have yet to breach overbought territory in terms of their RSI reading (70 or higher). This could present ETF investors with potential buying opportunities.
There’s a lot of talk in the capital markets centers around rising rates; unsurprisingly, the Global X Variable Rate Preferred ETF (PFFV) is at the top of the heap. PFFV seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE U.S. Variable Rate Preferred Securities Index.
The fund invests at least 80% of its total assets, plus borrowings for investments purposes (if any), in the securities of the underlying index and in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on the securities in the underlying index. The underlying index is designed to track the broad-based performance of the U.S.-listed variable rate preferred securities market.
China Utilities and S&P Covered Calls
Another fund to consider is the Global X MSCI China Utilities ETF (CHIU). CHIU seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Utilities 10/50 Index.
The fund invests at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index. The underlying index tracks the performance of companies in the MSCI China Index that are classified in the utilities sector, as defined by the index provider.
Last but not least is the Global X S&P 500 Covered Call ETF (XYLD). XYLD seeks investment results that generally correspond to the performance of the CBOE S&P 500 BuyWrite Index. The fund invests at least 80% of its total assets in the securities of the underlying index.
The underlying index measures the performance of a hypothetical portfolio that employs a covered call strategy. A covered call strategy is generally considered to be an investment strategy in which an investor buys a security, and sells (or “writes”) a call option on that security in an attempt to generate more income.
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