Thursday, November 14, 2019

Confirmed Speakers - Fall ETP Forum - Thursday, November 21 at the NYAC

Thursday, November 14, 2019 – The Fall 2019 ETP Forum on Thursday, November 21st at The New York Athletic Club is one week away and has shaped up to be another incredible conference!  We are thrilled to have such a wonderful slate of Speakers, Moderators and Panelists.  Please reach out to your ETF Global representative to inquire about complimentary passes to the event.

Now let’s meet our confirmed list of Speakers:

SAL LICATA, Director of Business Development, ETF Global
JULIAN EMANUEL, Chief Equity and Derivatives Strategist, BTIG
MIKE CASTINO, SVP, Exchange Traded Products, U.S. Bank Global Fund Services
ANDREA ROEMHIDT, Investment Manager, Aware ETFs
PERTH TOLLE, Founder, Life and Liberty Indexes
WILL HERSHEY, Co-Founder & CEO, Round Hill Investments
TONY DUFAULT, Head of ETF Product Development, Pacific Global Asset
JOHN JACOBS, Executive Director, Center for Financial Markets and Policy, Georgetown University
RICHARD KERR, Partner, K&L Gates
LAURA FLORES, Partner, Morgan Lewis
STEVE OH, Head of ETF Listings and Business Development, Nasdaq
TODD CIPPERMAN, Founding Principal, Cipperman Compliance Services
BIBB STRENCH, Partner, Thompson Hine LLP
CONOR PLATT, CEO, Confluence Capital Analytics
LORRAINE WILSON, Director of Investment Products, JUST Capital
HERNANDO CORTINA, Head of Index Strategy, ISS ESG
KARL SNYDER, Chief Market Strategist, VETS Indexes
ADAM BERNSTEIN, ESG/Impact Analyst, Gitterman Wealth Management
NICHOLAS COLAS, Co-Founder, DataTrek Research
MICHAEL VENUTO, Co-Founder & CIO, Toroso Investments
JAMES PACETTI, Director of Marketing, ETF Global
CHRIS HEMPSTEAD, Consultant, ETF Consulting
NANCY DAVIS, Managing Partner & CIO, Quadratic Capital Management
SEAN MEEHAN, Co-Head Municipal Trading, Wall Street Access
LANCE MCGRAY, Portfolio Manager, AAM
GEORGE BOLLENBACHER, Head, Fixed Income Research, Tabb Group
SCOTT SZEVER, Director, Exchange Traded Products, NYSE
JULIAN KLYMOCHKO, Founder and CEO, Accelerate Financial Technologies
LANCE HUMPHREY, Portfolio Manager, Victory Capital
PATRICK SHADDOW, Director of Index Operations, S Network Global Indexes
SEAN O’HARA, Director, Pacer ETFs
JULIE ABBETT, Executive Director and Head of ETF Sales, J.P. Morgan
YANG XU, Partner, UP Fintech, Tiger Brokers
MATTHEW TUTTLE, CEO & CIO, Tuttle Tactical Management
MIKE CRONAN, President of Marketing Services, Exchange Traded Concepts
JOHN THOMPSON, Co-Founder and President, Vesper Capital Management

·       All event information is on the event website at www.etpforum.org

·       Registration is here: http://etpforum.org/etp-forum/registration

We look forward to seeing you and 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.

Monday, November 11, 2019

Financials Lead a 5th Straight Week of Gains

Monday, November 11, 2019 – Happy Veterans Day to all!  Stocks extended their recent gains last week, finishing higher for the fifth consecutive week. In fact, the Dow Jones Industrial Average joined the S&P 500 and Nasdaq Composite Indexes in setting all-time highs. Recent signs of progress on trade negotiations, along with better-than-expected corporate earnings were the cause of positive investor sentiment. In addition, a sharp increase in longer-term bond yields and third-quarter corporate earnings also drove markets. The third-quarter earnings season is near its end with roughly 90% of S&P 500 companies having reported results.

Financial stocks outperformed as increasing interest rates favored banks’ lending operations. Rising long term bond yields weighed heavily on real estate and utilities shares mostly due to their respective dividend yields became less appealing. As it relates to ETFs, the U.S. listed ETP saw a weekly inflow of approximately $12 billion in assets. The equity market received the lion share of inflow as Invesco QQQ Trust (QQQ), SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO) saw a net inflow of approximately $1.6 billion, $1.2 billion and $975 million respectively. For a granular break down of net flows, investors can utilize ETF Global Fund Flow Summary.

ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: The top five gainers in ETFG Quant Total Score were Reality Shares Nasdaq NexGen Economy ETF (BLCN), WBI Power Factor High Dividend ETF (WBIY), Vident International Equity Fund (VIDI), Invesco RAFI Strategic Developed ex-US ETF (ISDX) and SPDR S&P Telecom ETF (XTL). Each ETP added approximately 7 points to their overall ETFG Quant score.

ETFG Quant Losers: Honorable mentions in the loser category were Invesco Dynamic Large Cap Value ETF (PWV), SPDR S&P Health Care Services ETF (XHS), WisdomTree Europe Hedged Equity Fund (HEDJ), FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (TLTE) and First Trust International Equity Opportunities ETF (FPXI). The causes can be traced to behavioral factors dipping slightly impacting the respective ETFG Total Quant scores by approximately 4 points each.

ETFG Weekly Select List - The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Considering the sector’s success, we’d like to highlight the top ETFs within the financial sector in this week’s Select List. SPDR S&P Insurance ETF (KIE) held onto the 1st place position followed by Davis Select Financial ETF (DFNL) in 2nd, iShares Evolved U.S. Financials ETF (IEFN) in 3rd and John Hancock Multifactor Financials ETF (JHMF) in 4th place. All preceding the newcomer to the list, Invesco KBW High Dividend Yield Financial ETF (KBWD) came in 5th.

Thanks 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.

Thursday, November 7, 2019

Fall 2019 ETP Forum - Updated List of Speakers

Thursday, November 7, 2019 – Thanks to all who have already registered for the upcoming Fall 2019 ETP Forum on Thursday, November 21, 2019 at the New York Athletic Club.  We look forward to another great event and please reach out to your ETF Global representative to inquire about complimentary passes to attend.

Now, let’s meet our updated list of Speakers:


SAL LICATA, Director of Business Development, ETF Global
JULIAN EMANUEL, Chief Equity and Derivatives Strategist, BTIG
MIKE CASTINO, SVP, Exchange Traded Products, U.S. Bank Global Fund Services
ANDREA ROEMHIDT, Investment Manager, Aware ETFS
PERTH TOLLE, Founder, Life and Liberty Indexes
WILL HERSHEY, Co-Founder & CEO, Round Hill Investments
TONY DUFAULT, Head of ETF Product Development, Pacific Global Asset
JOHN JACOBS, Executive Director, Center for Financial Markets and Policy, Georgetown University
RICHARD KERR, Partner, K&L Gates
LAURA FLORES, Partner, Morgan Lewis
STEVE OH, Head of ETF Listings and Business Development, Nasdaq
TODD CIPPERMAN, Founding Principal, Cipperman Compliance Services
CONOR PLATT, CEO, Confluence Capital Analytics
HERNANDO CORTINA, Head of Index Strategy, ISS ESG
KARL SNYDER, Chief Market Strategist, VETS Indexes
ADAM BERNSTEIN, ESG/Impact Analyst, Gitterman Wealth Management
NICHOLAS COLAS, Co-Founder, DataTrek Research
MICHAEL VENUTO, Co-Founder & CIO, Toroso Investments
JAMES PACETTI, Director of Marketing, ETF Global
CHRIS HEMPSTEAD, Consultant, ETF Consulting
NANCY DAVIS, Managing Partner & CIO, Quadratic Capital Management LLC
SEAN MEEHAN, Co-Head Municipal Trading, Wall Street Access
LANCE MCGRAY, Portfolio Manager, AAM
GEORGE BOLLENBACHER, Head, Fixed Income Research, Tabb Group
SCOTT SZEVER, Director, Exchange Traded Products, NYSE
LANCE HUMPHREY, Portfolio Manager, Victory Capital
PATRICK SHADDOW, Director of Index Operations, S Network Global Indexes
SEAN O’HARA, Director, Pacer ETFs
JULIE ABBETT, Executive Director and Head of ETF Sales, J.P. Morgan
YANG XU, Partner, UP Fintech, Tiger Brokers
MATTHEW TUTTLE, CEO & CIO, Tuttle Tactical Management
MIKE CRONAN, President of Marketing Services, Exchange Traded Concepts
JOHN THOMPSON, Co-Founder and President, Vesper Capital Management

·       All event information is on the event website at www.etpforum.org



·       Registration is here: http://etpforum.org/etp-forum/registration

We look forward to seeing you and 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

Monday, November 4, 2019

No Tricks, Just Treats Last Week

Monday, November 4, 2019 – Good news all around as stock prices climbed 1.5% this past week, reaching fresh record highs. The climb was fueled by slowing but still-positive economic and corporate data beating market expectations. In addition, the Federal Reserve cut interest rates for the third time this year and alluded to a pause in lowering rates to consider economic conditions. Good news was also found in the October Jobs report. The U.S. economy added 128,000 jobs in October, well above the consensus estimate.

The large-cap S&P 500 Index and the technology-heavy Nasdaq Composite Index reached new intraday and closing highs this week, while the smaller-cap stocks remained some distance from their late-2018 peaks. Within the SPDR S&P 500 ETF (SPY), health care shares outperformed, helped by earnings beats from Merck (MRK) and Pfizer (PFE). Energy shares lagged as oil prices fell after some oversupply concerns. As to improved sentiment on Wall Street, the Cboe Volatility Index (VIX), the so-called fear gauge, touched a four-month low – another glimpse of good news.

ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: The top five gainers in the ETFG Quant Total Score were First Trust Nasdaq Food & Beverage ETF (FTXG), KraneShares CICC China Leaders 100 Index ETF (KFYP), Schwab Fundamental U.S. Large Company Index (FNDX), iShares Russell Mid-Cap ETF (IWR) and Vanguard Small-Cap ETF (VB) respectively. Each ETP added well over 15% to their score as behavioral scores and global factors came into play.

ETFG Quant Losers: Honorable mentions in the loser category were WBI Power Factor High Dividend ETF (WBIY), Global X US Preferred ETF (PFFD), VanEck Vectors Pharmaceutical ETF (PPH), Consumer Staples Select Sector SPDR Fund (XLP) and JPMorgan Diversified Return Emerging Markets Equity ETF (JPEM). The causes can be traced to fundamental and behavioral factors dipping slightly impacting the respective total ETFG Quant scores.

ETFG Weekly Select List - The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Considering the sector’s success, we’d like to highlight the top ETFs within the health care sector in this week’s Select List. iShares Nasdaq Biotechnology ETF (IBB) held onto the 1st place position followed by iShares Global Healthcare ETF (IXJ) in 2nd and VanEck Vectors Biotech ETF (BBH) in 3rd place. Followed by newcomers to this week’s select list, SPDR S&P Pharmaceuticals ETF (XPH) and Invesco Dynamic Pharmaceuticals ETF (PJP) claiming the 4th and 5th spot respectively.

Thanks 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.

Friday, November 1, 2019

Meet the Speakers - Fall 2019 ETP Forum - 11/21 at the NYAC

Friday, November 1, 2019 – Thanks to all who have already registered for the upcoming Fall 2019 ETP Forum on Thursday, November 21, 2019 at the New York Athletic Club.  We look forward to another great event and please reach out to your ETF Global representative to inquire about complimentary passes to attend.

Now, let’s meet our preliminary list of Speakers:

Sal Licata, Director of Business Development, ETF Global
Julian Emanuel, Chief Equity and Derivatives Strategist, BTIG
Mike Castino, SVP, Exchange Traded Products, U.S. Bank Global Fund Services
John Jacobs, Executive Director, Center for Financial Markets and Policy, Georgetown University
Richard Kerr, Partner, K&L Gates
Laura Flores, Partner, Morgan Lewis
Steve Oh, Head of ETF Listings and Business Development, Nasdaq
Todd Cipperman, Founding Principal, Cipperman Compliance Services
Conor Platt, CEO, Confluence Capital Analytics
Hernando Cortina, Head of Index Strategy, ISS ESG
Karl Snyder, Chief Market Strategist, VETS Indexes
Adam Bernstein, ESG/Impact Analyst, Gitterman Wealth Management
James Pacetti, Director of Marketing, ETF Global
Chris Hempstead, Consultant, ETF Consulting
Nancy Davis, Managing Partner & CIO, Quadratic Capital Management
Lance McGray, Portfolio Manager, AAM
George  Bollenbacher, Head, Fixed Income Research, Tabb Group
Scott Szever, Director, Exchange Traded Products, NYSE
Lance Humphrey, Portfolio Manager, Victory Capital
Patrick Shaddow, Director of Index Operations, S Network Global Indexes
Julie Abbett, Executive Director and Head of ETF Sales, J.P. Morgan
Yang Xu, Partner, UP Fintech, Tiger Brokers
Matthew Tuttle, CEO & CIO, Tuttle Tactical Management
Mike Cronan, President of Marketing Services, Exchange Traded Concepts


We look forward to seeing you and 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

Monday, October 28, 2019

The Sequel: Market Resilience Defies October Tradition of Volatility

Monday, October 28, 2019 - US investors breathed a sigh of relief as we appear to have made it through the month without any significant bruises. Despite all the worrisome news headlines, US Equity and Global Markets climbed last week. The broad market as measured by the S&P 500 closed the week very close to its all-time high of 3,022.55. The NASDAQ 100, the proxy for the QQQ, hit new highs last week.  November and December are typically positive months for US Equity Markets and we appear to be heading that way. Traders should be aware that Google reports earnings on Monday to be followed by Facebook and Apple on Wednesday. These FAANG Stocks are critical to assess the direction of the leading indexes as they comprise a significant weighting in the benchmarks.

Foreign Markets like the German DAX and MSCI Emerging Markets Index sprang to life as well. All of this begs the question of whether recession fears are receding and are we at a new cycle of global growth?  The UK caught a break with an extension to negotiate their exit with the EU. Investors are betting on higher equity values with their money and we agree with them.

A number of themes caught our eye this week which we want to point out:

First, we sense that interest rates around the globe are bottoming and are set to reverse their course upward – but slowly. The governor of the Swedish Central Bank, the Riksbank, indicated that it is prepared to increase rates soon as negative rates induce negative economic outcomes and encourage risky behavior by investors seeking out higher yields. With Christine Legarde taking over the European Central Bank, we expect a push in Europe toward big spend fiscal policy. Keep in mind, given such low rates, a slight upward move can create significant dislocations in not just fixed income markets, but real estate, credit funds and other levered investments.

Looking around the world, we sense there is a general move by the G7 to reflate using fiscal policy given that monetary policy has reached its limits to support the real economy. Indeed with the masses increasingly protesting around the world (Argentina left populist wing, Chile, Hong Kong, JFK Airport workers, technology freelancers, various public teacher unions and the recently ended auto workers union to name a few) we expect politicians to take note and pursue fiscal policies to keep the “barbarians” at bay.

We also point out that this week, DAVOS in the Desert begins in Saudi Arabia. Of note is the session themes to see what is on the mind of the global elite – a number of disruptive technologies as well as Space which will have effects on global economies and labor markets.

All of this creates opportunities for traders and active investors who can use ETFs to take advantage of real-time market volatility – both up and down!  To take advantage of this, we suggest looking at our ETFG Weekly Select List.

We suggest keeping a mindful eye on tools like our Select List and Risk and Reward Ratings that can be used to evaluate the vast set of opportunities in the ETF marketplace. Today’s market realities require a new approach to macro investing, one in which individual investors now have access to tools via ETPs to customize risk and return profiles in their portfolios. Use our Scanner to find those funds.

Thank you for reading the 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.

Monday, October 21, 2019

Market’s Resilience Defies October’s Tradition of Volatility

Monday, October 21, 2019 - October is a dangerous month for investors in the equity markets.  Nevertheless, despite all the headlines concerning the ongoing trade war, a hard Brexit landing, new military confrontations in Syria, negative interest rates, global recession concerns, earnings reports, a cooling job market and economy, disorderly politics in Hong Kong, a slowing Chinese economy, US stocks shrugged off these worries and continued to climb. Indeed, the market’s resilience is most impressive.

The broad market, as measured by the S&P 500, closed last week very close to its all-time high of 3,025.86. Stocks seesawed and ended the week up with the large cap weighted S&P 500 closing at 2,986.20 and the broader NASDAQ Composite closing at 8,089.54 for a weekly gain of .54% and .40% respectively. These indexes are up YTD 19.12% and 21.92% respectively. Gold prices remained strong closing at $1,490 per troy oz and the US 10 Year Note was virtually unchanged to yield 1.747. We expect market volatility to continue for the foreseeable future, especially given October’s history. Astute investors will need to be on guard to see if the expected interest rate cut by the Federal Reserve happens on October 30th.

A number of themes caught our eye this week which we want to point out. First, today’s article from our friends at DataTrek, Nick Colas and Jessica Rabe suggest that we might be in the midst of the “Great Earnings Reset of 2019.” They observe that S&P 500 earnings are essentially stuck at zero and this is preventing markets from making new highs. For a sustainable rally, they postulate that we need a positive resolution to the US-China Trade War. We encourage you to look at their report on Linked-In.

On a bright note for those who follow contrarian indicators, last week’s cover story in Barron’s  was on “Upside Down” Interest Rates i.e., the growing number of negatively yielding bonds around the globe. Media attention like this usually foretells the peak of the investment theme which leads us to think that interest rates may be on the verge of bottoming and starting an upward move. We also note that looking around the world, we sense there is a general move by the G7 to reflate using fiscal policy given that monetary policy has reached its limits to support the real economy. Last week’s better than expected earnings reports from JP Morgan and Citibank also indicated that the US economy might not be headed for recession.

Keep in mind, given such low rates, a slight upward move can create significant dislocations in not just fixed income markets, but real estate and other levered investments.  Investors in hedge funds should take note. The US Dollar Index fell last week by 1.2% - a significant drop.  Looking at the charts, the dollar index peaked in 2017 and has hovered in that area since.  A weakened dollar would be a boost to Emerging Markets Debt and US Cyclicals which derive approximately 40% of their revenues from overseas.

Lastly, most disturbing was last week’s report by the IMF which warned that the global bond bubble has put the global financial system at risk as fixed income funds as vulnerable to liquidity shocks. This is primarily due to holdings of illiquid high yield investments which cannot be liquidated to meet shareholder redemptions. The canary in the coal mine indicator is the problem involving the liquidation of the Neil Woodford funds in Europe. The report provides ample scares just in time for Halloween.

This creates opportunities for traders and active investors who can use ETFs to take advantage of real-time market volatility - both up and down!  To take advantage of this, we suggest looking at our ETFG Weekly Select List.

The ETFG Weekly Select List highlights the 5 most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.  We highlight a couple of ETFs that attracted our attention for investors given our views.  In the Consumer Staples KXI is our top pick. JHMU is our top ranked in the Utility Sector.

We suggest keeping a mindful eye on tools like our Select List and Risk and Reward Ratings that can be used to evaluate the vast set of opportunities in the ETF marketplace. Today’s market realities require a new approach to macro investing, one in which individual investors now have access to tools via ETPs to customize risk and return profiles in their portfolios. Use our Scanner to find those funds.

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