3 Country ETFs With Huge Gains In 2013

Thanks to brightening economic outlook in some parts of the world, the global equity markets have seen t strong rally in 2013, despite tapering concerns. The economic activity in the world’s largest economy is picking up with upbeat economic data on the labor and housing fronts.

The pickup in the economy and the labor market has nevertheless reignited fears of tapering sooner rather than later. The speculation of Fed’s ‘QE’ slowdown once again has taken a toll on the emerging markets. With this in mind, it is time to shed some light on the best performing markets and related single-country ETFs of 2013 (read: Time for This Top Ranked Global ETF (ACIM)?).

As the year 2013 draws to a close, there are a handful of country ETFs returning more than 30% this year. Below, we have highlighted a few of these strong momentum plays, which could be interesting picks for investors heading into the New Year.

These products have a Zacks ETF Rank of 2 or ‘Buy’ rating, suggesting bullish trends in the coming months as well.

PowerShares Golden Dragon China Portfolio (NYSEARCA:PGJ) – Up 55.61%

China, the world’s second-largest economy, is showing speedy recovery buoyed by growing domestic demand, an improving industrial and manufacturing sector, increasing exports and rising consumer sentiment. GDP growth is expected to meet or exceed the country’s annual growth target of 7.5%.

This remarkable performance has made PGJ a top performer of 2013. Though quite unpopular with AUM of $317.2 million, this fund sees solid average daily volume of nearly 140,000 shares. It tracks the Nasdaq Golden Dragon China Index while charges 70 bps in fees and expenses.

In total, the fund holds 67 stocks in the basket with the top 10 firms accounting for nearly 54% of total assets. Further, more than half of the portfolio is allocated to information technology, followed by consumer discretionary (18.89%). Other sectors receive minor allocations in the portfolio.

However, the ETF is widely spread across various market spectrums – mid caps (44%), small caps (37%) and large caps (18%).

db X-trackers MSCI Japan Hedged Equity Fund (NYSEARCA:DBJP) – Up 41.59%

While most Japanese ETFs have been soaring in 2013, DBJP performed particularly well. This is because of its currency-hedged strategy that provides hedge against any fall in the Japanese currency while providing an exposure to the rebounding Japanese equity market (read: Time to Bet on Japan Hedged Equity ETFs?).

Though the Japanese economy is turning around the corner on the heels of ‘Abenomics” – a stimulus program introduced by the Prime Minister Shinzo Abe early this year to lift the world’s third largest economy out of feeble growth and deflationary pressure – a declining yen against the dollar has kept the returns on check.

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