ETF Awards: Best, Worst and What to Watch in 2014

By Eric Balchunas - 2013-12-19T16:50:25Z

Photorgaph by Tomohiro Ohsumi/Bloomberg

Company Symbol % Change
6 of 17

Best Single-Country ETF

WisdomTree Japan Hedged Equity Fund (DXJ)
+34%

If we gave out only one award to the ETF of the year, it would be DXJ. It returned 34 percent while attracting new inflows of $9.4 billion, more than all ETFs except the largest one, the S&P 500 Trust (SPY). By betting on a rise in Japan’s exporters and against the yen, DXJ was perfectly positioned to profit from Japan’s move to depreciate its currency to bolster exports. The concept of packaging a specific trade (long stocks, short currency) into an ETF foreshadows a future of “solution-oriented” ETF launches. 

The big country loser was the iShares MSCI Brazil ETF (EWZ), down 19 percent. Investors spooked by Brazil’s high inflation and lackluster growth pulled $3.5 billion out of the fund, the biggest outflow of any single-country ETF. 

Advertisement