Arrow Funds has recently introduced two exchange-traded funds that take different paths—momentum and mean reversion—to attempt to reach the same goal of capitalizing on market shifts in global equities.

The Arrow DWA Country Rotation ETF (DWCR), which began trading last Friday, follows a momentum-based index with a relative-strength focus from Dorsey, Wright & Associates. The index looks for the 10 strongest performing countries from among a universe of 41 countries. From there, it will zero in on 10 companies within a specific country that have strong relative strength characteristics.

For the time being, the DWCR fund is composed of country-based ETFs from iShares representing the following countries: South Korea; Taiwan; China; Chile; Thailand; Austria; Poland; Belgium; Finland and India.

According to Arrow, the use of ETFs is what they're doing coming out of the gate to get the country exposure. In the coming weeks, that will shift to individual equities in those specific countries as they get custody accounts opened in each country. 

The fund is equal-weighted and rebalanced and reconstituted quarterly. Its expense ratio is 0.75 percent.

The Arrow Dogs of the World ETF (DOGS), which launched earlier this week, is a twist on the contrarian, deep-value Dogs of the Dow concept based on rotating into the prior year’s worst performing stocks in the hope that they're primed for a rebound. The DOGS fund applies a global approach to this strategy via an index that looks at a universe of 44 countries among developed, emerging and frontier markets, and then chooses the five worst performing countries that are expected to experience a reversion to the mean.

This product employs a fund of ETFs approach, and begins trading with a portfolio of five ETFs—four from iShares and one from Global X—representing Qatar, Pakistan, the United Arab Emirates, Israel and Canada. Qatar represents 30 percent of the portfolio, while the other four countries range from 18 percent to 17.64 percent.

The fund’s expense ratio is 0.65 percent.

The international emphasis of both ETFs aims to provide low correlation to the U.S. stock market, an approach Arrow believes is particularly germane in the current investment environment.

“The last time the divergence was so wide between the U.S. and the international markets was in 1998,” Joseph Barrato, Arrow Funds CEO and director of investment strategy, said in a press statement.