By Nicholas A. Vardy, CFA
Other cheap stock markets include Russia and Japan — two markets that have done very well through the first five-plus months of this year.
The much-reviled Market Vectors Russia /zigman2/quotes/200464876/composite RSX 0.00% has surged some 24.13% year to date. The perennially out-of-favor iShares MSCI Japan ETF /zigman2/quotes/201162210/composite EWJ +0.73% is up 15.3%.
The year-to-date moves higher in these cheap markets suggest that the smart money has started to recognize the merit in attractively valued markets.
How to make money in cheap global stocks
One exchange-traded fund (ETF) that invests purely based on one of the criteria listed in The Telegraph study — the CAPE ratio — is the Cambria Global Value ETF /zigman2/quotes/201584704/composite GVAL +1.85% .
The very opposite of a sexy cyber-security or biotech stock, GVAL is chock full of the world's most hated and obscure stock markets. It's top five holdings are in Russia, Greece, Ireland, Poland and Italy.
Still, GVAL is up 7.02% year to date, comfortably outperforming the U.S. S&P 500 by more than three to one. Also, GVAL is currently technically oversold, 11.91% off its recent highs, and due for a strong bounce.
So I recommend you hold your nose and invest in the Cambria Global Value ETF.
Just don't expect it to earn you bragging rights with your buddies on the golf links in La Jolla.
Disclosure: Vardy owns GVAL.