As we approach wrapping up the 3rd quarter of 2016, it seems very similar to how we both started the 3rd quarter and wrapped up other recent quarters which was watching the Fed and gauging their posture on when to raise interest rates. Last week’s market activity began slowly with the obvious anxiety over the Fed’s announcement and predictably the upswing came after the Fed decided not to raise interest rates. The week ended however on a small downward trend with the Dow Jones increasing by .8%, and the S&P 500 and Nasdaq both increasing by 1.2%.
Most sectors had a positive week with Real Estate benefiting the most by the Fed’s decision and up 3% for the week. One stock that enjoyed a rumor-filled week was Twitter (TWTR). With takeover talk abuzz that either Google or Salesforce.com might be lining up to take over Twitter, TWTR was up over 20% for the week. Looking at our ETF Global ETF Exposure report, we can see that the ETFs with the biggest holdings of Twitter are SOCL (Global X Social Media Index ETF), MILN (Global X Millenials Thematic ETF), and PNQI (Powershares Nasdaq Internet Portfolio). SOCL exposure to TWTR is 9% while MILN and PNQI have 3% exposure. Each of these ETFs had a roughly 3% return this week.
In ETF news for the week, Advisor Shares has filed for the first actively managed exchange-traded-fund with performance-based fees. They will charge .75% +.1% if the ETF beats the benchmark and -.1% if it doesn’t. It will be interesting to watch investor reaction to this type of fund and fee structure and whether more funds decide to follow suit.
Within our ETFG Quant Movers, the biggest changes were for JPXN which jumped roughly 13% in its ranking, QTWN which moved 11.46% and IVAL which improved 10.11%. Heavily focused on the Asia-Pacific region, these ETFs benefited from the Bank of Japan announcement that it would introduce a bond-purchase program which sent stocks soaring. On the downside of the Quant Movers, IEMG, SCHB, and HDEF dropped 10.79%, 10.55%, and -9.98% respectively in their ETFG Quant Rankings.
Last week we had very little movement in the leadership of our our ETFG Weekly Select List. Roughly 80% of the ETFs in their respectful categories maintained their number 1 spot. 1 ETF however that made a jump an enormous jump in the Seeking Alpha Category was IPKW, PowerShares International BuyBack Achievers Portfolio, which leaped from number 4 to number 1 this week – could be worth taking a deeper look.
Thank you for reading ETF Global Perspectives!
ETFG 21 Day Free Trial: https://www.etfg.com/signup/quick
Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.
ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision. ETFG’s opinions and analyses do not address the suitability of any security. ETFG does not act as a fiduciary or an investment advisor. While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor.