Monday, May 20, 2019

What Comes Next?

Monday, May 20, 2019 - Trade issues and likely Fed easing dominated the news last week as US Equity Markets struggled to regain from Monday’s sell off and ended the week mixed. The large cap weighted S&P 500 closed at 2859.53 and the broader NASDAQ Composite closed at 7816.28 for a weekly loss of - .76 % and -1.27%. While investors are focused on day-to-day tit-for-tat tariff retaliations between the US and China and the apparent breakdown in talks at the diplomatic attache level, the POTUS indicated that he believed we would get thru this bump when he meets Premier Xi at the upcoming G20 Meeting at the end of June. Investors should plan to bring the connected devices to the beach as news events are likely to provided trading opportunities.

US Investors seem to discount the significance of last week’s new restrictions on US companies doing business with Huawai. These restrictions are designated as critical to national security. This has been met with strong criticism among the public in China which ends up restricting Xi’s ability to provide concessions in any trade deal on difficult topics like protection of IP and forced technology transfers.  China is very sensitive to either Japan or the US restricting their ascendance.

Now given more trade restrictions are likely to slow down the economy as well as damper investors’ enthusiasm to buy stocks since corporate earnings are likely to suffer, the upcoming Fed June 18th meetings become more critical for investors.

All of this led us to call upon our friends at DataTrek Research, Nick Colas and Jessica Rabe to get their view of what we should expect going into the end of Q2 given this confluence of complex events. Below is what they wrote us:

After a strong start to the year, global equities have lost some of their zip.  Here are Q2 returns-to-date for a variety of US and global stock indices in dollar terms:

S&P 500: +0.9%
Russell 2000: -0.3%
MSCI EAFE Index (non-US developed economies): -0.1%
MSCI Emerging Markets: -6.1%
MSCI All-World ex-US: -1.6%
Worth noting: the DXY dollar index has strengthened by 0.8%, but even correcting for that the MSCI EAFE Index has underperformed the S&P 500

At first blush, the outperformance of US large caps may seem anomalous since trade wars – the proximate cause of Q2-to-date volatility – should weigh on all risk assets to some degree.   That has not been the case and in the remainder of this note we will outline why this divergence exists and what it means for asset prices going forward.

There are 3 important dynamics to consider:

#1: Markets fully expect the Federal Reserve to cut short-term rates in 2019; this belief is both pushing long-term rates lower and supporting lofty US large cap valuations.

As of Friday’s close Fed Funds Futures discount a 73% chance that the Fed will have to cut its benchmark rates by at least 25 basis points before the end of the year. This market sees sub-par US inflation readings and worries about the economic uncertainties of a trade war as pushing the Fed to act, perhaps as soon as September.

Two-year Treasury price action is consistent with this point of view.  At a 2.20% payout, 2-years sport their lowest yields since Q1 2018. Ten-year Treasury yields, the risk-free rate that is the bedrock of US equity valuations, have fallen from their January 2019 highs of 2.79% to just 2.39% now on the same concerns.

Since Q1 US corporate earnings came in better than expected, renewed investor confidence in business profits combined with lower long-term rates has translated into resilient US large cap stock prices.  That’s how we end up with a 16.5x price/earnings multiple on the S&P despite only 3-4% earnings growth.

#2: US small caps (Russell 2000) have not fared as well in Q2 because their valuations are tethered to corporate high yield spreads.  The reason for that linkage: smaller growth companies often need access to outside capital to execute their growth plans.  High yield spreads are a proxy for both the cost of that capital and its relative availability:

The spread over Treasuries for US non-investment grade corporate debt stands at 4.06% today. This is notably higher than the 3.71% spread a year ago on this date as well as the 3.5% average of Q3 2018.

Given that we are in a very late part of the cycle and that the high yield/leveraged finance issuance calendar looks robust for the remainder of Q2 and into Q3, we do not expect high yield spreads to tighten any time soon.

#3: As for what’s going on with MSCI EAFE and Emerging Markets indices, that comes down to the fact that they are dramatically different animals from the S&P 500:

While the S&P 500’s official weighting to Technology sector may be 21%, remember that Amazon, Google, Facebook and other names are not in this category. Once you add in these and other names that are certainly “Tech” regardless of S&P classification, Technology’s real weighting in the 500 is 30%.

The MSCI EAFE Index, by contrast, is just 6% Technology.   Its heavyweight sectors are Financials (19%), Industrials (14%), Consumer Staples (12%) and Health Care (11%).  None, obviously, are as fundamentally attractive as US Tech shares and the two largest exposures – Financials and Industrials – are cyclical groups with negative operating leverage should the current expansion come to an end.

The MSCI Emerging Markets index does have similar Tech exposure (28%) as the S&P 500 once you perform the same adjustments as our first point, but most of that is in Chinese names. Tencent and Alibaba are 9.5% of MSCI EM, and those are primarily Greater China plays rather than having the broader global exposure of an Apple or Microsoft (the 2 largest names in the S&P at a 7.6% combined weight).

Summing up: global equity markets face largely the same fundamental trade-related risks for the remainder of Q2, but will likely continue to respond differently.  Large cap US stocks look the best insulated, buttressed by lower discount rates and resilient earnings. US small caps are no safe haven from the trade kerfuffle – their valuations ride on a late-cycle high yield market.  And for EAFE and Emerging Markets, we expect these two areas to have the greatest challenges.  Both may be cheap relative to US large caps, but valuation alone is never enough to make an asset class work.  For that, you need a catalyst.

And for the remainder of Q2, we suspect good news will be in short supply.

To keep up with Nick and Jessica’s views on the markets including cryptocurrencies and cannibis,  we urge you to check out their website at http:datatrekresearch.com. They have a generous trial offer which we encourage you to try out.

Thank you for reading the 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 of or from that investment to the investor.

Thursday, May 16, 2019

Winners of the Spring 2019 ETF Global® Portfolio Challenge!

Thursday, May 16, 2019 - After 10 weeks of intense competition characterized by constant change atop the leaderboard and double digit returns amongst the Top 25 finishers, the Spring 2019 ETF Global® Portfolio Challenge has come to a close. Our seventh edition of the Portfolio Challenge brought in a new wave of talented college students from a diverse array of universities and academic backgrounds. Drawing over 700 students from 180 schools in 41 countries, this semester’s competition helped enlarge the portfolio challenge’s already broad global footprint and create highly competitive playing conditions.

Our contestants all began the semester with a virtual balance of $100,000 and with the task of constructing the best performing portfolio of ETFs. Students were afforded weekly rebalancing opportunities and could invest in a minimum of 4 and maximum of 10 ETFs at a time. Despite facing heavy competition all semester, these select students were able to separate themselves from the rest of the field.

Please join us in congratulating the winners of the Spring 2019 ETF Global® Portfolio Challenge!

Name
School
Return
Erin Hope
Keuka College
51.8%
Austyn Scott
Keuka College
51.7%
Joshua Kayn
Keuka College
26.6%
Alejandro Gutierrez Restrepo
Universidad EIA
23.4%
Mariana Muñoz
Universidad EIA
22.3%
Paolo Montemurro
Università della Svizzera Italiana
21.9%

Our winners hailed from three different schools in three different countries. Our first and second place winners, Erin Hope and Austyn Scott, had heavy positions in EGA Emerging Global Shares Trust (HILO) and Direxion Daily Gold Miners Bull 3X ETF (NUGT). Joshua invested mainly in JPMorgan Ultra-Short Income ETF (JPST) helping him to earn a return of 26.6%. Alejandro and Mariana were able to achieve 23.4% and 22.3% returns respectively through investing in a mix of physical commodity ETFs and Fixed Income funds.  Finally, our sixth place finisher Paolo posted a total percent gain of 21.9% through a diverse investing strategy that included ETFs from the Metals, Oil & Gas, and TMT sectors coupled with a variety of Fixed Income funds.

As the Winners of this semester’s challenge, these students will be featured and recognized during the ETF Global® Portfolio Challenge Awards Ceremony at the upcoming Fall 2019 ETP Forum (www.etpforum.org) on Thursday, November 21st at the New York Athletic Club.

Please see below for the students that rounded out our Top 25 participants

Name
School
Return
Cristobal Gonzalez
Universidad EIA
20.4%
James Clark
University of Maine
19.9%
Naif Alhamed
California State University, Fullerton
19.8%
Tushar Verma
Rutgers University
19.8%
Malcolm Menezes
Xavier University
19.7%
Brian Toy
Binghamton University
19.5%
Chiaoyu Pai
University of Hong Kong
17.4%
Davide Brignoli
Università della Svizzera Italiana
17.4%
Alec Vanderloo
Loyola University Chicago
17.4%
Mariam Salla
ESSEC
17.1%
Joshua Warner
Plymouth State University
16.7%
Dylan Clark
Keuka College
16.4%
Tim Akin
Birkbeck, University of London 
16.4%
Sean Clarry
Rutgers University
16.3%
Juan Daniel Hincapie Herrera
Universidad EIA
15.9%
Abishek Dubey
ESSEC Business School
14.8%
Jeff Haegler
Keuka College
14.6%
Thien Nguyen
Washington University in St. Louis
14.5%
Paul Casse
ESSEC
14.2%

Since its inception in the Fall 2015, the ETF Global® Portfolio Challenge has attracted students from 6 continents and over 400 schools. As millennials continue to increase their usage of ETFs, we encourage all college students to take advantage of this opportunity and learn about this fast-growing investment vehicle before they enter the marketplace.

Registration for the Fall 2019 competition will open at the end of August.  For more information and to sign-up for the Challenge, please visit: www.etfportfoliochallenge.com.

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 of or from that investment to the investor.

Wednesday, May 15, 2019

ESG & DICE - Employing U.S.Vets Conference - May 30th - NYC

Wednesday, May 15, 2019 - Our friends at The Expert Series are producing an incredible conference within the ESG space in two weeks - please see below for details........
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We are proud to invite you and your colleagues within the ESG and Diversity and Inclusion communities to the Employing U.S. Vets Conference on May 30th at the New York Athletic Club. The event – co-hosted by VETS Indexes and Military Times – will include discussions of best practices related to veteran employment, recognition of companies going above and beyond for Vets and their families and lots of opportunities to network.


Sign-up now to join panelists, speakers & attendees from these corporations, government agencies, non-profits, foundations, academia and more!


More than ever, current members and Veterans of our military are transitioning from the military and seeking civilian careers. There are about 27 million people in the military-connected community, including active duty personnel, reservists, military families and veterans.  This vast talent pool represents significant opportunities for organizations looking to hire qualified and hard-working employees and has become an integral segment of the Human Capital portion of the Social pillar within Environmental, Social & Governance (ESG). But to take advantage, companies need to know their stuff.

This one-day event features dynamic speakers and panel discussions with nationally recognized employers distinguished for strong track records in veterans’ employment. Military Times reporters and editors will help lead the discussions.

We look forward to seeing you on May 30th for what is sure to be an excellent event!
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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 of or from that investment to the investor.

Monday, May 13, 2019

Trading Bumps

Monday, May 13, 2019 - Trade fears hampered sentiment throughout the week as the U.S. raised tariffs to 25% on $200 billion in imports from China. In turn, China vowed to retaliate indicating an escalation in rhetoric and raising the odds of a breakdown in trade negotiations. Volatility, as measured by the Cboe Volatility Index (VIX), spiked to its highest level since January signaling an increase of uncertainty among investors.

Nevertheless, a Friday afternoon rally shielded the major indexes from their worst declines since late December. The technology-heavy Nasdaq Composite Index performed worst dipping more than 3% for the week. The Russell 2000 TR Index stood out for being the only major benchmark to temporarily move into correction territory, down over 10% from its all-time highs approximately a year ago.

Looking at the various sectors in the S&P 500, information technology shares performed worst, dragged lower in part by a decline in Apple (AAPL). Industrials and Materials were also weak as investors worried about rising trade barriers. The typically defensive Consumer Staples sector held best. The trading week was also notable for Friday’s initial public offering (IPO) of Uber (UBER), which valued the ride-sharing company at around $75 billion. The amount raised by the offering, totaling approximately $8.1 billion, made it one of the 10 largest IPOs in history and the biggest since Chinese Internet giant Alibaba’s IPO debut in 2014.

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 in order were Principal International Multi-Factor Index ETF (PXUS), iShares U.S. Basic Materials ETF (IYM), Vanguard Dividend Appreciation ETF (VIG), ETRACS Alerian MLP Index ETN Series B (AMUB) and Cushing 30 MLP Index ETNs (PPLN). Evident behavioral factors were the primary drivers for the increased growth (over 10%) in each fund’s Total Quant Score.

ETFG Quant Losers: Honorable mentions in the loser category were Barclays Return on Disability ETN (RODI), Vanguard US Multifactor ETF (VFMF), Reality Shares DIVCON Dividend Guard ETF (GARD), IQ 50 Percent Hedged FTSE Japan ETF (HFXJ) and Global X MSCI China Consumer Discretionary ETF (CHIQ). The reasons for the ETFG Quant score drop were driven by behavioral and global factors.

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

We saw an interesting phenomena in the Strategy portion when comparing this week’s Select List to last week’s Select List – there was complete turnover in the Theme category. Pacer Military Times Best Employers ETF (VETS) snagged first place, proving that ESG factors, particularly in the S and G category, can perform well for investors in all market cycles. Global X Conscious Companies ETF (KRMA) claimed second followed by Legg Mason Global Infrastructure ETF (INFR), iShares MSCI USA ESG Select ETF (SUSA) and ARK Genomic Revolution Multi-Sector ETF (ARKG) in order from 3rd to 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 of or from that investment to the investor.

Monday, May 6, 2019

Mixed Bag of Tricks

Monday, May 6, 2019 - It was a busy week as there were plenty of corporate earnings and economic data to cause a stir – not to mention the latest Avengers film setting box-office records. However, the week ended with stock prices predominantly flat excluding small cap and international stocks which outperformed. Economic data were mixed. The U.S. economy added 263,000 jobs in April, which was higher than expected even though the Federal Reserve reiterated its patient approach in maintaining rates on Thursday. While the Fed’s narrative was neither bleak nor optimistic, stocks sold off initially, highlighting the growing risk surrounding investor expectations for rate cuts. While investors can remain comfortably in their seats, it might be worthwhile to prepare for the bull market's potential endgame.

Looking at this past week’s ETF weekly flows, we saw mixed sentiment with outflows in the bond markets. iShares TIPS Bond ETF (TIP) had redemptions of approximately $780 million in assets and iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) dropped $725 million in assets as well. It’s worthwhile to note that outflows of $670M, $600M and $565M in First Trust Health Care AlphaDEX Fund (FXH), Energy Select SPDR Fund (XLE) and iShares Russell 2000 (IWM) respectively.

Notable top asset gainers included SPDR S&P 500 Trust (SPY), First Trust Utilities AlphaDEX ETF (FXU) and Dow Jones Industrial Average Trust ETF (DIA). These funds saw a weekly inflow of $2.7 billion, $738 million and $475 million respectively. Both iShares Care S&P Small Cap ETF (IJR) and Vanguard Total Stock Market ETF (VTI) claimed 4th and 5th for the week both bringing in approximately $420 million in asset flows.

In the ETFG Quant Movers, there were significant moves in a variety of names covering both sector and geographic themes. Top percent gainers included iShares US Regional Banks ETF (IAT), Invesco S&P SmallCap Health Care ETF (PSCH) and iShares MSCI Argentina and Global Exposure ETF (AGT) with percent changes of 18.52%, 17.86% and 15.94% to their overall respective ETFG Quant score. Notable losers included Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI), Franklin FTSE Australia ETF (FLAU) and Invesco BuyBack Achievers ETF (PKW) dropping 16.74%, 16.04% and 14.09% respectively.

ETFG Weekly Select List – Each week we compile a list of the 5 most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Considering the strategy’s success in times of volatility, we’d like to highlight some substantial movement in the High Dividend Yield portion when comparing this week’s Select List to last. Fidelity High Dividend ETF (FDVV) moved up one spot to take the first overall position on the list knocking the Legg Mason Low Volatility High Dividend ETF (LVHD) down to 2nd. Vanguard International High Dividend Yield ETF (VYMI) also moved up from the 5th position to claim bronze (3rd) in this week’s list. Other notable funds in the High Dividend Yield category were FlexShares International Quality Dividend Dynamic Index Fund (IQDY) in 4th and SPDR Portfolio S&P 500 High Dividend ETF (SPYD) in 5th.

Lastly, a big thank you to all the speakers and attendees ho helped make the Spring 2019 ETP Forum such a big success! Mark your calendars – The Fall 2019 ETP Forum will be held on Thursday, November 21, 2019 at the New York Athletic Club.

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, April 29, 2019

Record Highs & ETP Forum Tomorrow!

Monday, April 29, 2019 - US Stock markets continue to show signs of great strength as they ended this week setting more records in 2019. For the week, the Dow Jones Industrial Average finished a bit off from its high last week down only 0.16%, closing at 26,543.3. On the other hand, both the S&P 500 and Nasdaq Composite set new records twice this week and closed up 1.2% and 1.9%, respectively. Those fresh highs are 2,939.88 for the S&P 500 and 8,146.40 for the Nasdaq.

In ETFs, we see outflows in some bond ETFs. BSV, the Vanguard Short-Term Bond ETF lost $1.23B in assets this week. That was followed by TIP, the iShares Tip Bond ETF, which lost over $700M in assets. In inflows, investors have picked up more shares of the Invesco QQQs, adding over $2B to the fund’s AUM. That was followed by IVV, which is iShares S&P 500 Product, gaining $1.2B to its AUM, all according to our ETFG Fund Flow Summary.

In the ETFG Quant Movers, we saw sector-based products gain significant percentage points to their overall scores. The First Trust Materials AlphaDEX Fund, FXZ, and the First Trust Financial AlphaDEX Fund, FXO, added 20.06% and 16.70% to their overall Quant scores respectively.

On the loser’s side, we also saw some sector-based ETFs. The SPDR S&P Semiconductor ETF, XSD and the iShares US Regional Banks ETF IAT saw a 19.66% and 16.8% decline to their overall quant scores respectively.

ETFG Weekly Select List - the 5 most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Because of the sector’s success in the major indexes this week, we’d like to highlight some substantial movement in the Basic Materials portion when comparing this week’s Select List to last. The iShares MSCI Global Silver Miners ETF, SLVP, moved up one spot to take the first overall position on the list. This knocked the U.S. Global GO GOLD and Precious Metal Miners ETF, GOAU out of first place and the whole list in general. FMAT, the Fidelity MSCI Materials Index ETF, moved up two positions and into 2nd place this week. XME, the SDPR S&P Metals & Mining ETF, remained in the 3rd position. Coming into the list in place of GOAU was the VanEck Vectors Gold Miners ETF, GDX, which is now in 4th place. Another new addition was the Global X Gold Explorers ETF, GOEX, which is now in the 5th position.

We look forward to seeing everyone tomorrow for the Spring 2019 ETP Forum and thanks for reading ETF Global Perspectives!

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