Drexion MSCI Emerging Markets Bull 3x ETF (EDC US) $US39.34

The US traded EDC provides leveraged exposure to MSCI Emerging Market Index, it’s unhedged to swings in respective currencies, while it’s traded in $US providing some mixed tracking to local investors. Currently, the ETF’s main exposure is approximately. 29% in China, 19% in India, 17% Taiwan, 9% in Korea, and 4% in Brazil. Fees are 1.08%, gearing is 3x, and dividends are paid quarterly, with a current yield of ~2.7%. Tracking is again  “okay” with the MSCI Emerging Market Index up 4.66% in the last month while the EDC ETF has gained 13.12%, 2.8x. Overall, a solid ETF when active investors/traders want to move overweight towards the emerging markets, a theme that MM likes.

• We believe the EDC ETF will trade higher, outperforming its peers, over the coming months.