Five ETFs to Target if Risk On is Really Back On

Alright, let's assume for a minute that risk is back in style and that this little five-day rally is more than a dead cat bounce. It's a hard proposition to imagine simply because the past 90 or so days have shown investors that risk is simply not in fashion right now. In other words, it's going to take more than a few good days to re-baptize the “risk on” trade. It's going to take a confluence of good news out of Europe and supportive economic data points from China and the U.S. Assuming two of those three scenarios oblige, there are score of ETFs investors will want to check out to rake in some quick profits as riskier assets come back into season. Here are five to consider. Market Vectors RVE Hard Assets Producers ETF

: The Market Vectors RVE Hard Assets Producers ETF is one ETF that just screams risk. Home to over 300 stocks, the ETF devotes almost 81% of its sector weight to the energy and materials sectors. When stocks like BHP Billiton

, BP

and Potash

are all found in one ETF, you know it's a high-beta risk-on type of fund and that's exactly what HAP is. iShares MSCI Brazil Index Fund

: All emerging markets ETFs except the inverse ones have been repudiated in the recent downturn and Brazil's woes have been highlighted again and again. EWZ was once an emerging markets ETF darling that has seen its star fall in 2011. That will happen when financials, materials and energy names account for over 60% of emerging markets ETF's weight. After a nice 12% bounce in the past week, EWZ may be near-term overbought, but it makes for an ideal risk bounce candidate. IndexIQ Australia Small-Cap ETF

: While Australia is a developed market, it's also an epicenter of the risk on trade due to its proximity to emerging Asia and its status as a major producer of scores of raw materials. After bouncing of support at $20, KROO has been jumping higher to the tune of over 15%. Now the ETF must crack resistance at $24 to continue the rally. Global X Uranium ETF

: One of 2011's most controversial and worst-performing ETFs, URA's assets under management total has actually been impressive in the face of adversity. Perhaps just as important, the uranium-specific news flow hasn't been terrible lately. The reason URA has been declining so much has been because it's a commodities play in a harsh macroeconomic environment. URA should prove very sensitive to a positive outlook on riskier assets by the broader market. The ETF would be in rally mode if resistance at $10 is broken. Global X Copper Miners ETF

: Talk about near-term overbought, the Global X Copper Miners ETF has surged nearly 17% in the past five trading days. Even with that pop, COPX is still more than 50% removed from its 52-week high. There's no guarantee COPX can return to $19-$20 this year, but if the Chinese economic data is supportive, COPX will add to its recent gains.