With trade wars, interest rates and fears of a global economic slowdown weighing on the minds of investors in the current market landscape, there’s a plethora of options available to get defensive, opt for safer-haven large cap equities or look for opportunities abroad. However, if an investor can identify significant trends prevailing in the market over other trends, he or she can capitalize on this confirmation bias with single-product efficiency through Direxion’s Relative Weight ETFs.
Whether an investor thinks U.S. equities in general will outpace international equities or emerging markets will supplant developed markets in terms of performance, the Relative Weight ETFs give investors this unique capability without having to spread capital over a multitude of positions.
“Broadly speaking, the reception for them (Relative Weight ETFs) continues to be favorable in the marketplace,” David Mazza, Head of Product at Direxion Investments told ETF Trends.
1. Growth Versus Value
During the market doldrums to end 2018, investors were typically better off discarding the growth factor and seeking refuge under an umbrella of value as a defensive play. In 2019, there continues to be separate camps of analysts who say value is in vogue while others say the growth party isn’t over just yet.
Whichever camp an investor’s confirmation bias happens to be at the time of analysis, he or she can play the Direxion Russell 1000 Growth Over Value ETF (NYSEArca: RWGV) and the Direxion Russell 1000 Value Over Growth ETF (NYSEArca: RWVG).
For investors looking for continued upside in growth-oriented equities over value-oriented equities, RWGV offers them the ability to benefit not only from growth opportunities potentially performing well, but from their outperformance compared to value.
Conversely, if investors believe that value-oriented equities will outperform growth-oriented equities, RWVG provides a means to not only see value opportunities perform well,