Monday, February 24, 2020

Coronavirus Now Impacting Earnings Estimates

Monday, February 24, 2020 - As Coronavirus cases and deaths continue to rise, investors showed a sign of retreat during this shortened trading week knocking major US indices from their two weeks of gains. For the week, the Dow Jones Industrial Average dropped 1.4% closing at 28,992. The S&P 500 and the Nasdaq Composite also were hit by the fear, losing 1.9% and 1.6% respectively. This all coming as we have started to hear of the first companies reporting that their quarterly estimates for Q1 may not be met due to the business implications brought about by the Coronavirus.

In ETFs, there were outflows from some of the largest products in the marketplace. SPY, the SPDRS S&P 500 ETF, lost about $5.3B in assets during the shortened trading week. That was followed by HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, which shed about $776M in assets. For inflows, investors poured money into a low volatility ETF, SPLV, the Invesco S&P 500 Low Volatility ETF, which gained over $1.3B in assets. That was followed by IVV, the iShares S&P 500 fund, which gained over $1.1B in assets, all according to our ETFG 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: In the ETFG Quant Movers, we saw European based ETFs gain the most percentage points to their overall scores. The Franklin FTSE Europe Hedged ETF, FLEH and the iShares MSCI Poland ETF, EPOL, added 24.26% and 20.82% to their overall ETFG Quant scores respectively.

ETFG Quant Losers: On the loser’s side, we saw safe-haven security based ETFs drop percentage points in their overall scores. The First Trust Preferred Securities and Income ETF, FPE and the ALPS Sector Dividend Dogs ETF SDOG lost 26.66% and 21.07% to their overall scores respectively.

ETFG Weekly Select List - Because of this strategy’s success, we’d like to highlight some substantial movement in the Basic Materials portion of this week’s Select List. The SPDR S&P Metals and Mining ETF, XME, held steady at the top spot on the list. Following that was a full list of newcomers compared to last week. PSCM, the Invesco S&P SmallCap Materials ETF and BATT, the Amplify Advanced Battery Metals & Materials ETF, finished in 2nd and 3rd this week knocking GOEX, the Global X Gold Explorers ETF and GOAU, the U.S. Global GO GOLD and Precious Metal Miners ETF off the list. Rounding out the top 5 were both SIL, the Global X Silver Miners ETF and GDX, the VanEck Vectors Gold Miners ETF which came in 4th and 5th respectively.

Markets seem to be paying even greater attention to the global implications the Coronavirus and will surely be watching closely this week.

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_______________________________________________________
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.

Tuesday, February 18, 2020

Despite Angst, Positive Persists in U.S. Markets

Tuesday, February 18, 2020 – We hope that everyone enjoyed a wonderful Presidents’ Day and welcome back! This past week, the markets continued to trend the same way they have for the past month, positively. Able to build off last week’s momentum, the Dow Jones, S&P 500 and Nasdaq Composite closed this week with gains of 1.02%, 1.58% and 2.21% respectively.

In what is a volatile time in the world, with the Coronavirus still at large and the US election season on the horizon, the market seems to be defying all odds with its continued strong showing. As we stated last week, the US continues to be a safe investment place in the world while the Coronavirus devastates other large markets, mainly China. With investors likely pulling money out of anything that is associated with the virus, the United States continues to make its strong push.

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

ETFG Quant Winners:  On to the ETFG Quant Movers, we will look at this week Top % Gainers and % Losers. On the Gainers side, this week’s winners from 1-5 are JPLS, LDRS, PNQI, FIVA and GAMR. Our number one % Gainer, JPLS had a staggering change of 109.06%. This ETF, which is actively managed, both invests long and short in stocks based on relevant return factors.

ETFG Quant Losers:  On the % Losers side, this week’s top 5 losers were FNDE, FPE, SDOG, ZDEU and TPYP respectively. The biggest loser, FNDE, had a % loss of -59.28% in our model. FNDE, which is the Schwab Fundamental Emerging Markets Large Company Index ETF, likely got hit hard because of the Coronavirus, which is proving very difficult to stop in China. China, which is an emerging market, has been hit hard by the virus over the past month and ETFs that have interests there, such as FNDE, will likely suffer until China can get control of the deadly virus.

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_______________________________________________________
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, February 10, 2020

Despite Global Panic, U.S. Markets Stay Strong

Monday, February 10, 2020 - The deadly Coronavirus that has caused widespread panic throughout the world, as containing it is proving difficult, was not able to damage the U.S. markets this week. Another strong week came our way, as the Nasdaq Composite, Dow Jones Industrials and S&P 500 were up 4.04%, 3%, and 3.17% respectively. Perhaps in this week of global turmoil, especially in China, investors may be looking towards U.S. companies as a safe haven. In addition, was another strong showing for the economy in the form of the Job Report for January. The report showed us that employers added around 225,000 jobs the previous month. Overall, the three indices were at record highs on Thursday and it seems, for the short term, that the epidemic is not going to stop the U.S. markets’ momentum.

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

ETFG Quant Winners: On to the ETFG Quant Movers table, we can see this week’s five biggest % Gainers were PNQI, LDRS, JKD, JPLS and SKYY. Worth noting is that the top three ETFs on this list either actively invest or track an index that reflects the overall US economy. Whether that be Large Cap companies (JKD) or an index that tracks the top ranking ETFs (LDRS), what our ETFG Quant Model is showing is that the US economy showed well this week against the rest of the world and these ETFs that are heavily invested in it reaped the benefits.

ETFG Quant Losers: On the % Losers side this week, FNDE, PWV, EDIV, QDEF, FGD led the way. Two of the top 3 losers, FNDE and EDIV, are both emerging markets ETFs, which is interesting as China is considered an emerging market. Perhaps our model is showing us that the biggest losers this week can be linked to ETFs that have large interest in China, which is dealing with the Coronavirus epidemic.

ETFG Weekly Select List - Finally, we’ll take a look at the ETFG Weekly Select List and compare the last two weeks’ worth of data. Looking at the Sector portion of our select list, we can see our biggest winner this week was XME, from the Basic Materials focus, as it moved all the way from last place 5th to 1st place this week. Other notable winners include FIDU from the Industrials focus, moving to 1st place this week from 3rd place the previous week, and FNCL from the Financials focus, which had an impressive move from 4th place to 2nd place.

Thanks for reading ETF Global Perspectives!

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_______________________________________________________
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, February 3, 2020

Worsening Fears

Monday, February 3, 2020 - Growing uncertainty over the scope of the economic impact of the coronavirus outbreak rippled through the markets this week, sending stocks to their largest weekly declines since October and erasing this year's gains. As the outbreak continued to escalate, the World Health Organization officially issued a global public health emergency. These mounting concerns spurred a rally in safe-haven assets, while growth-sensitive assets like stocks and commodities plunged.

Against this backdrop of anxiety, several notable economic events took place - Q4 GDP registered a 2.1% annual growth rate, consumer spending moderated slightly, corporate earnings continued to be largely positive, while the Fed maintained its cautious posture and left interest rates unchanged.

These developments, however, were subordinated by the intensifying coronavirus outbreak and drove the DJIA, S&P 500 and NASDAQ down 2.5%, 2.1% and 1.8% respectively. Despite a strong start to the year, the coronavirus-induced selloff shattered the placid market environment and led all three indexes to experience their worst January performance since 2016.

This backdrop of volatility is reflected in the year-to-date performance of broad asset classes. Equity indexes are largely all in negative territory this year, with the familiar tech heavyweights and income-producing groups like utilities and real estate propping them up from further declines. Trade and global growth-sensitive oil prices are down 13.1% this year, as measured by WTI prices, reflecting the sharpening concerns over the global economic growth trajectory. Gold has advanced 3.9% and long-dated U.S. treasuries are up 6.7%. Taken together, asset class performances to start the year signal a sharp reversal from Q4's sanguine outlook to one of considerably more gloom and uncertainty.

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 the First Trust Australia AlphaDEX Fund (FAUS), First Trust Global Wind Energy ETF (FAN), First Trust Consumer Staples AlphaDEX Fund (FXG), iShares MSCI Belgium ETF (EWK), and iShares MSCI Mexico ETF (EWW).

ETFG Quant Losers: The ETF experiencing the steepest weekly declines were the AdvisorShares Vice ETF (ACT), SPDR Portfolio Developed World ex-US ETF (SPDW), Vident International Equity Fund (VIDI), Invesco PureBeta FTSE Developed ex-North America ETF (PBDM), and BMO Elkhorn DWA MLP Select Index ETN (BMLP).

Thanks for reading ETF Global Perspectives!

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_______________________________________________________
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, January 27, 2020

Pervasive Virus Fears

Monday, January 27, 2020 - Growing concerns over the spread of the deadly coronavirus led all three major indexes to post losses for the week, as investors focused on the adverse global economic implications of this disease outbreak. These declines mark a departure from the steady rise upwards that stocks have experienced to start this year amid an easing of global trade tensions and encouraging economic data. For the week, the DJIA, S&P 500 and NASDAQ shed 1.2%, 1.0, and 0.8% respectively. These losses snapped the streaks of two-week gains for the DJIA and S&P and six-week gains for the NASDAQ.

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 the Cushing 30 MLP Index ETN due June 16 2037 (PPLN), Sprott Gold Miners ETF (SGDM), Invesco Dynamic Leisure and Entertainment ETF (PEJ), First Trust Brazil AlphaDEX Fund (FBZ), and iShares Currency Hedged MSCI Spain ETF (HEWP).

ETFG Quant Losers: The ETF experiencing the steepest weekly declines were the JPMorgan Alerian MLP Index ETF (AMJ), iPath S&P MLP ETN (IMLP), WisdomTree India Earnings Fund (EPI), SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM), and VictoryShares International High Div Volatility Wtd ETF (CID).

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

With the coronavirus outbreak dominating this week's headlines, we'd like to bring attention to the ETFs that our models favor in the increasingly turbulent Asia-Pacifc region - 1) iShares MSCI South Korea ETF (EWY), 2) iShares MSCI Malaysia ETF (EWM), 3) First Trust Chindia ETF (FNI), 4) Global X MSCI China Information Technology ETF (CHIK), and 5) Global X MSCI China Health Care ETF (CHIH).

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_______________________________________________________
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.

Tuesday, January 21, 2020

The Rise Continues

Tuesday, January 21, 2020 – U.S. markets were closed yesterday in observance of Martin Luther King Jr. day. We wish our readers a happy holiday and hope that you enjoyed the long weekend.

The mixture of better than anticipated economic data, encouraging corporate earnings and the signing of the "phase-one" trade agreement pushed U.S. stocks to new record highs last week. The S&P 500 (+2.0%), Nasdaq Composite (+2.3%), and Russell 2000 (+2.5%) all rose at least 2.0%, and the Dow Jones Industrial Average (+1.8%) trailed right behind. In addition, six of the eleven S&P 500 sectors wrapped up the week with gains of at least 2.0%, including a 3.8% gain in the typically defensive leaning Utilities sector. The energy sector was the only sector to finish lower, dipping -1.1% as oil prices continued to fall.

Investors now turn their attention back to corporate earnings after solid results from the biggest banks on Wall Street. Netflix (NFLX) reports fourth-quarter results Tuesday, showing the effect of the new from Disney (DIS) streaming service. Texas Instruments (TXN) also reports Tuesday night, with chip names Intel (INTC), STMicroelectronics (STM) and Skyworks Solutions (SWKS) reporting later in the week. For investors looking to diligence which ETFs have the most exposure to these stocks, please take advantage of ETFG’s Grey Market Summary.

In looking at individual ETF flows, the Vanguard Small-Cap ETF (VB) topped inflows list, with a net flow of just under $1.5 billion. Also on the top five list was the iShares Core S&P 500 ETF (IVV), the iShares 20+ Year Treasury Bond ETF (TLT), the iShares ESG MSCI U.S.A. ETF (ESGU) and the First Trust Capital Strength ETF (FTCS). Each ETF brought in approximately $1 billion in new AUM respectively. In weekly outflows, we saw Vanguard Short-Term Corporate Bond ETF (VCSH) and SPDR S&P 500 ETF Trust (SPY) drop approximately $1.5 billion in redemptions.

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 Quant Total Score were Vanguard S&P Mid-Cap 400 Value ETF (IVOV), iShares Core S&P Small-Cap ETF (IJR), First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FNX), Vanguard S&P Small-Cap 600 ETF (VIOO), and First Trust Nasdaq Transportation ETF (FTXR). Each ETP added well over 18% to their overall Quant.

ETFG Quant Losers: Honorable mentions in the loser category were Invesco DWA Consumer Staples Momentum ETF (PSL), WisdomTree Japan SmallCap Dividend Fund (DFJ), iShares Dow Jones U.S. ETF (IYY), Invesco DWA Emerging Markets Momentum ETF (PIE) and Vanguard Communication Services ETF (VOX). The reasons for the drop in quant scores can be traced to fundamental and behavioral factors.

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 Utilities sector in this week’s Select List. John Hancock Multifactor Utilities ETF (JHMU) moved from the 3rd position to claim 1st followed by Fidelity MSCI Utilities Index ETF (FUTY) which jumped two spots from 4th to 2nd. Newcomers to this week’s Select List were Global X MSCI China Utilities ETF (CHIU) in 3rd, Virtus Reaves Utilities ETF (UTES) in 4th and iShares Global Utilities ETF (JXI) in 5th.

Thanks for reading ETF Global Perspectives!

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_______________________________________________________
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, January 13, 2020

Settled Tensions Lead to Strong Rise

Monday, January 13, 2020 – U.S. stocks scored a solid weekly gain in the first full week of trading for 2020. The large cap indexes pushed further into record territory, as the prospects for armed conflict between the U.S. and Iran appeared to diminish. Last week we saw the Dow Jones Industrial Average flirt with an all-time high of 29,000 but later fell 133 points (0.5%) to 28,824 on Friday. For the week, the Dow was up 0.7%, the S&P 500 rose 1.0% and the NASDAQ rose 1.8%.

The technology sector outperformed, led by continued strength in Apple (AAPL) following a report of strong sales in China. A sharp rise in the stock price of cloud software firm Salesforce.com (CRM) also contributed to the sector’s success. The stabilizing situation in the Middle East reversed the previous week’s spike in oil prices and weighed on energy shares. As a result, oil declined 6% on the week. The small cap benchmarks also lagged and recorded modest losses for the week. In addition, a host of relatively favorable reports on activity in the global services sectors also likely delivered some support and helped the markets shrug off Friday's weaker than expected U.S. labor report.

In ETFs, 2020 kicked off with great inflows continuing a trend from the previous year. In total, last week registered over $15 billion in new assets. Sector based ETFs topped the list of weekly inflows. The Industrial Select Sector SPDR Fund (XLI), the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Financial Select Sector SPDR Fund (XLF) each made the list bringing in approximately a billion dollars in flows a piece. On the other hand, SPDR S&P 500 ETF Trust (SPY) saw an outflow of over $1 billion while SPDR Gold Trust (GLD) and iShares Russell 2000 ETF (IWM) lost over $600 million in AUM.

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 Quant Total Score were AdvisorShares Vice ETF (ACT), SPDR S&P Health Care Services ETF (XHS), iShares U.S. Healthcare Providers ETF (IHF), The Obesity ETF (SLIM) and SPDR S&P Fossil Fuel Reserves Free ETF (SPYX) respectively. Each ETP added well over 10% to their overall Quant.

ETFG Quant Losers: Honorable mentions in the loser category were First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS), Sprott Gold Miners ETF (SGDM), WisdomTree India Earnings Fund (EPI), iShares MSCI United Kingdom Small-Cap ETF (EWUS) and Global X MSCI SuperDividend EAFE ETF (EFAS). The reasons for the drop in quant scores can be traced to global themes and behavioral factors.

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 Technology sector in this week’s Select List. ALPS Disruptive Technologies ETF (DTEC) moved from the 5th position to claim 1st followed by Global X MSCI China Information Technology ETF (CHIK) holding on to 2nd. Newcomers to this week’s Select List were Global X E-Commerce ETF (EBIZ) in 3rd, KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ) in 4th and iShares Exponential Technologies ETF (XT).

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