FundX CEO Janet Brown talked about which funds and ETFs are in favor now, given recent changes in the markets, on the Money Life Show with Chuck Jaffe.
“We are seeing small cap-funds, value, and foreign funds continue to outperform,” Janet said. “This change has been a long time coming. We’ve been in a large-cap growth domestic market for most of the decade, so it’s big news that we’re seeing these new funds rise to the top.”
Which funds and ETFs are in favor now?
If you’re looking to buy into these new leading areas, Janet suggested funds like iShares Russell 2000 (IWM), iShares Russell 2000 Growth (IWO), and Matthews Asia Growth (MPACX). And she also noted that convertible securities funds, like SPDR Convertible Securities (CWB), have been in favor lately.
Janet also answered listener questions about which sector and single-country funds are doing well lately, giving her take on biotech ETFs, clean energy funds, and Asia funds and ETFs.
Janet Brown’s take on 6 funds and ETFs
Which biotech ETF is worth owning: SPDR Biotech (XBI) or iShares Nasdaq Biotech (IBB)?
Even though they’re both biotech, these two ETFs have performed differently, Janet noted. XBI has outperformed, but it is volatile, so she suggested keeping position sizes small.
Is SPDR Utilities (XLU) in favor now?
“Utilities have been at the bottom of the barrel, so I’d stay away from that one,” Janet said. If you’re going to invest in a single sector fund, there are better performing funds to choose from.
Is Invesco Solar ETF (TAN) a good way to invest in clean energy?
Funds concentrated in clean energy have been doing very well, Janet noted, but she pointed out that “TAN is a very concentrated portfolio, and it’s one of the most aggressive among clean energy funds. We prefer to be a little more diversified.”
She suggested FirstTrust Nasdaq Clean Edge Green Energy (QCLN), which is little more diversified than TAN, or Shelton Green Alpha Fund (NEXTX), which is more broadly diversified.
How to invest in Asia? Should I invest in Matthews Asia Innovators (MATFX) or iShares MSCI Malaysia (EWM)?
“Asia is looking good and Matthews has some terrific funds that are on our Buy list,” Janet said. Matthews Asia Innovators (MATFX) is in favor now, Janet said, yet it’s quite concentrated. “A little lower risk fund I really like is Matthews Asia Growth (MPACX),” she said.
When it comes to iShares MSCI Malaysia (EWM), “although it’s in Asia, it’s not doing well, so it’s not the time to be in this ETF,” Janet said. Other Asia funds are currently doing better.
Click below to listen to Janet’s full interview
(Janet comes on at the 38 minute mark).