Five Country-Specific ETFs Seeing Stealth Rallies

Tuesday's glum action aside, from late September/early October, riskier assets have been in rally mode. Most of us know there has been a renaissance of sorts for ETFs offering equities exposure to high-beta sectors and some commodities funds are looking better than they did in August and the early part of September. Even some downtrodden developed and emerging markets ETFs are getting in on the action. Everyone knows that Brazilian and Chinese fare looks far sportier today than did 30 or 60 days ago, but those aren't the only markets that have been seeing a resurgence. Here are five country-specific ETFs that have been rally mode over the past month that no one is talking about. Just to make it worth your while, we also assess the probability of these ETFs continuing to flourish. IndexIQ Australia Small Cap ETF KROO: The IndexIQ Australia Small Cap ETF seems to fly under the radar regardless of the situation, but when the risk on trade comes back on, this is exactly the type of ETF you want to be involved. The combination of small-caps and 37% combined exposure to materials and energy stocks make KROO a sound idea for an environment where investors are embracing risk. Can the good times continue? Yes, trading below $25 KROO is still 22% off its 52-week high, but risk must be embraced for this ETF to notch further gains. IndexIQ Canada Small Cap ETF CNDA: CNDA is no slouch, having gained 10% in the month leading up to today and the situation here is almost exactly the same as with KROO: Investors have gone looking for value with materials and energy names and that's benefited CNDA as those sectors account for two-thirds of the ETF's weight. Can the good times continue? Yes and CNDA might be offering some value 26% below its 52-week high. Encouraging is that at the time of this writing, the ETF is up slightly while the broader market is getting thrashed. CNDA is getting close to reclaiming its 50-day moving average. IndexIQ Hong Kong Small Cap ETF HKK: The newest member of this list, HKK has surged 10% in the past month. The ETF's move above $14 is bullish and a move above $15 would be even better as that would mean the 50-day line has been taken out. Can the good times continue? A tepid “yes” and tepid because China is still a crap-shoot and HKK is thinly traded. iShares MSCI All Peru Capped Index Fund EPU: Up over 9%, EPU is an ETF we want to love, but find it difficult to do so. Answering “Can the good times continue?” is easy by addressing the following scenarios: All ETFs tracking Latin American markets have been dragged down by Brazil. Investors are arguably still not fussed about the political situation in Peru. EPU's chart is marked by a series of lower highs and lower lows. Global X FTSE Argentina 20 ETF ARGT: Unknown to plenty of investors, the Global X FTSE Argentina 20 ETF is up almost 10% in the past month. As ETFdb.com noted recently, ARGT's year-to-date tumble has “pushed PE ratios down on the portfolio to an ultra-low 8.9, suggesting that long term investors might see some significant value.” Remember, Argentina has South America's second-largest economy behind Brazil. It also has frontier market status. Can the good times continue? Yes, but this what needs to happen: Brazil needs to rise again, boosting sentiment toward LatAm ETFs. Argentina's inflation and unemployment situations MUST improve and do so quickly.