Monday, March 30, 2020

Rebound Amid Turmoil

Monday, March 30, 2020 – Last week was another crazy week on Wall Street as stocks bounced all around and recorded their best week in 11 years posting back-to-back gains for the first time in over a month. The Federal Reserve announced a widespread asset purchasing program, including credit based ETFs and other measures to support the flow of credit to employers, consumers and businesses. Additionally, President Trump and Congress reached a deal on an unprecedented $2 trillion stimulus package to offset the fallout from the coronavirus outbreak.

On Tuesday, the Dow Jones Industrial Average had its best day since 1933 and the S&P 500 Index experienced its largest daily rally since October 2008. Looking at the numbers for the week, the DJIA surged 12.8%, the S&P 500 rallied 10.3% and the Nasdaq Composite gained 9.1%. Even beaten-down energy shares outperformed due to U.S. officials putting pressure on Saudi Arabia to end its price war with Russia. Airline shares also bounced back midweek on the arrival of a $60 billion bailout package as part of the stimulus bill and a rebound in Boeing boosted the Industrial sector. Utilities shares were also strong while communication services shares lagged.

Though another historic week in terms of stock market volatility, ETF fund flows saw modest changes considering all the news. The one exception, however, was iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) which saw over $5 billion in new assets as the Federal Reserve began purchasing investment-grade corporate bond ETFs to help stabilize the credit markets. Also on the top five inflow list was Invesco QQQ Trust (QQQ), SPDR Gold Trust (GLD,) SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) and Vanguard S&P 500 ETF (VOO). Invesco QQQ Trust (QQQ) saw a $2.5 billion inflow while the remaining ETFs each brought in approximately $1.5 billion respectively. For outflows, the iShares Core S&P 500 ETF (IVV), the iShares Core U.S. Aggregate Bond ETF (AGG) and the PIMCO Enhanced Short Maturity Active ETF (MINT) topped the list for the week, losing $3.5 billion, $2.5 billion and $1.2 billion respectively.

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 their ETFG Quant Score were iPath S&P MLP ETN (IMLP), Innovator IBD ETF Leaders ETF (LDRS), Franklin FTSE Europe Hedged ETF (FLEH), Global X SuperIncome Preferred ETF (SPFF), and VictoryShares Developed Enhanced Volatility Wtd ETF (CIZ). Each ETP added anywhere from 41.42% to 20.98% to their overall ETFG Quant Score.

ETFG Quant Losers: Honorable mentions in the loser category were First Trust Preferred Securities and Income ETF (FPE), Invesco S&P 500 Top 50 ETF (XLG), Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), ELEMENTS SPECTRUM ETN (EEH) and First Trust Switzerland AlphaDEX Fund (FSZ). Each ETF lost around 25% in Quant Total Score and the reasons for the drop can be traced to mostly 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 bounce back from extreme lows, we would like to highlight the top ETFs within the Energy sector in this week’s Select List. SPDR S&P Transportation ETF (XTN) held on the 1st place while U.S. Global Jets ETF (JETS) and Fidelity MSCI Industrials Index ETF (FIDU) who are new to the list for the week claimed 2nd and 3rd respectively. Invesco S&P SmallCap Industrials ETF (PSCI) moved from 2nd to claim 4th and Invesco Dynamic Building & Construction ETF (PKB) jumped down one position to the 5th spot.

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, March 23, 2020

Bio Bear

Monday, March 23, 2020 – We hope that all is going as well as it can be during these difficult times and we extend our thoughts and prayers to all those countries, companies, families and individuals impacted by the Coronavirus.

Extreme volatility persisted this past week, with stock markets declining sharply as the number of COVID-19 (coronavirus) cases globally continued to rise. On Friday, the Dow Jones Industrial Average plunged 913 points (-4.6%) to 19,174, the S&P 500 Index fell 105 points (-4.3%) to 2,305 and the Nasdaq Composite declined 271 points (-3.8%) to 6,880. To add to the situation, trading activity spiked – 2.7 billion shares were traded on the NYSE and 5.2 billion shares on the NASDAQ – due to quadruple-witching or the expiration of options and futures contracts on stocks and indexes. For the week, the DJIA was down 17.3%, the S&P 500 decreased 14.5% and the Nasdaq Composite declined 12.6%.

The effects of social distancing will take a significant toll on the U.S. economy and hurt employment as major central banks and governments around the world announced measures to counter the effect. Travel restrictions remain in place, businesses shuttered and schools have extended distance learning programs, all while the New York Stock Exchange said it will temporarily close its iconic trading floor and move temporarily to electronic operations.

Though another historic week in stock price declines, ETFs remained resilient and saw a relatively modest outflow of around $19 billion in total assets for U.S. listed ETPs. In looking at individual flows, the SPDR S&P 500 ETF Trust (SPY) topped inflows list, with a total gain of around $8.25 billion. The iShares Core S&P 500 ETF (IVV) topped the outflow list with a decline of $4.2 billion in assets. Also on the top five inflow list was SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL), Invesco QQQ Trust (QQQ), iShares Short Treasury Bond ETF (SHV) and iShares 1-3 Year Treasury Bond ETF (SHY). In order these ETFs brought in $4.8 billion, $4.0 billion, $2.3 billion and $1.9 billion respectively in fresh assets. In weekly outflows, we saw iShares Core U.S. Aggregate Bond ETF (AGG) and iShares 20+ Year Treasury Bond ETF (TLT) drop over $3 billion each 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 their ETFG Quant Total Score were iPath S&P MLP ETN (IMLP), Innovator IBD ETF Leaders ETF (LDRS), Franklin FTSE Europe Hedged ETF (FLEH), Global X MSCI SuperDividend Emerging Markets ETF (SDEM) and AdvisorShares Vice ETF (ACT). Each ETP added around 10 points to their overall Quant.

ETFG Quant Losers: Honorable mentions in the loser category were ELEMENTS SPECTRUM ETN (EEH), First Trust Preferred Securities and Income ETF (FPE), Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), iShares MSCI Finland ETF (EFNL) and SPDR Solactive Germany ETF (ZDEU). The reasons for the drop in quant scores can be traced to mostly 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 substantial losses, we’d like to highlight the top ETFs within the Energy sector in this week’s Select List. Energy Select Sector SPDR Fund (XLE) moved from the 4th position to claim 1st followed by Invesco DWA Energy Momentum ETF (PXI) which jumped from 5th to 2nd. First Trust Natural Gas ETF (FCG) stayed at 3rd followed by two newcomers to this week’s Select List, VanEck Vectors Oil Service ETF (OIH) in 4th and SPDR S&P Oil & Gas Equipment & Services ETF (XES) in 5th.

Thank you 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.

Tuesday, March 17, 2020

Rescheduled – ETP Forum is now November 19 at The NYAC

Tuesday, March 17, 2020 – We wish a very happy and healthy St. Patrick’s Day to all!

We have been closely monitoring the rapidly changing data and facts associated with the Coronavirus (COVID-19). The health and safety of our conference participants is always our primary concern.

We have rescheduled the upcoming "Spring 2020 ETP Forum" which was originally scheduled for Friday, May 15th at The New York Athletic Club. The event has been rescheduled for Thursday, November 19, 2020 and will be held at the same venue.

We understand that taking this action may cause some disruption to our participants, but we strongly believe that postponing the event will decrease the risk to all.

Thank you in advance for your flexibility and we will keep you informed of any new developments. In the upcoming months, please monitor this blog and refer to the event site www.etpforum.org for future updates.

We look forward to a very successful event in November and we thank you once again for your participation. Should you have any questions, please email us at fxhagan@expertseries.org.

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.

Monday, March 16, 2020

Unchartered Waters

Monday, March 16, 2020 – Once again, markets are rapidly moving this morning as the U.S. Federal Reserve announced a second emergency rate cut to zero on Sunday in conjunction with Central Banks around the world. Chairman Jerome Powell announced that Monetary Policy had run its course and that a Fiscal Stimulus is needed to stabilize the economy and markets. Nevertheless, today, equity markets in Europe collapsed down over 9% and several European airlines announced plans for bankruptcy filings unless they received government bailouts. There are also signs that global money markets are starting to freeze up although the issues have been managed to date. The drop in U.S. interest rates will help relieve stress in Emerging Markets.

This comes despite President Trump’s attempt to calm the markets late Friday afternoon with announcements that the U.S. would attempt to stabilize oil markets with buying for the U.S. Strategic Oil Reserve and a relatively weak fiscal cushion for workers affected by the downturn. Obviously, investors worldwide are not impressed with the U.S. policies designed to address the situation. Washington’s response is viewed as a day late and dollar short to address this crisis. This will not go unnoticed in the upcoming November elections should they not get postponed if virus containment strategies continue into the Fall. In a short period of time, the Corona medical crisis has transformed into an economic downturn and a financial crisis.

Last week, oil prices appeared to stabilize around the low $30s and all equity prices made moves in excess of 5% up or down daily. While this morning, the 10 Year Treasury Yield bond lingers around .8%.  Nevertheless, the US appears to be heading toward negative interest rates.

As we head into this week, “Cash is King” with the SPY down almost 9% in pre-market trading.

U.S. markets closed down last week with the S&P 500 finishing down 8.79% and the Nasdaq Composite 8.17%. The broad market, as measured by the S&P 500, closed the week at 2,711.02. The NASDAQ Composite closed at 7,874.88. Both indexes ended the week down sharply with the DJIA officially entering a bear market. For the record, the Bear Market occurred in 19 days from top to bottom. As a footnote, the S&P 500 Energy Index dropped 24.28% for the week and is down 47.14 YTD. These numbers are of historic proportions.

This is a developing crisis on the scale of 2008 at least or perhaps worse. Expect emergency Central Bank Rate Cuts have run their course. Expect preparations for sector bailouts and large fiscal spending plans to “save capitalism.” These efforts however will be stymied by supply chain bottlenecks and public fear of the Coronavirus. Recession across the globe is occurring although not officially verified. Expect dislocations in political regimes.

Despite global volatility, ETPs had USD $31.52 billion in net inflows in February and $98.68 billion YTD.   A bright spot for ETF Issuers. The main losers of the current meltdown are likely to be mutual funds, hedge funds and private credit funds.

Investors should take heed of the underlying securities in high yield ETFs and money market funds as credit markets should be expected to freeze up. At some point, asset prices will reach a bottom and investors should be prepared to take advantage of ETFs to build portfolios. Rapid price volatility challenge quantitative strategies and ratings.

To best support the ETF selection process, our 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 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, March 9, 2020

Oil and Coronavirus Drive Rapid Readjustment in Asset Values

Monday, March 9, 2020 - Markets are rapidly moving this morning as oil prices drop 20% to mid $30s and all equity prices plummet. U.S. Futures price halts are triggered. The 10 Year Treasury Yield drops below .4%. The U.S. appears to be heading toward negative interest rates.

While concern of the economic fallout of the Coronavirus drove markets last week, the breakdown of  Russian and Saudi cooperation in managing oil supplies and prices on Friday creates a new reality in the Middle East and Oil Geopolitics. As of now, “Cash is King.”

While unbelievable, U.S. markets closed higher last week with the S&P 500 finishing up .61% and the Nasdaq Composite .10%. The broad market as measured by the S&P 500 closed the week at 2,972.37. The NASDAQ Composite closed at 8575.62. Both indexes ended the week largely flat despite volatility of historic proportions. Markets across Asia dropped approximately 5% while European markets recovered to roughly minus 5% after initial drops of 8.5%.

This is a developing crisis on the scale of 2008. Expect emergency Central Bank Rate Cuts, as well as, preparations for sector bailouts and large fiscal spending plan. These efforts, however, will be stymied by supply chain bottlenecks and public fear of the Coronavirus. Recession across the globe is likely.  Expect dislocations in political regimes.

Investors should take heed of the underlying securities in high yield ETFs and money market funds as credit markets should be expected to freeze up. Get ready for a roller-coaster week thanks to Mr. Putin!

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. To best support the ETF selection process, 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 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.

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, March 2, 2020

Markets Hit Hard

Monday, March 2, 2020 - It was one of the worst weeks for US Equity Markets since the financial crisis as Coronavirus fears became very real for Investors.

For the week, the Dow Jones Industrial Average dropped 3,583 points or 12% closing at 25,409. The S&P 500 fell 11% to 2,954 while the Nasdaq Composite also knocked off 11% of its value to fall to 8,567. This coming as there is now a greater risk of a pandemic scenario created by the virus and definite supply chain and business implications for the World.

In ETFs, we saw outflows from some of the largest products in the marketplace. SPY, the SPDRS S&P 500 ETF, lost over $17B (yes, you read that correctly) in assets during this week. That was followed by HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, which shed about $3B in assets or about 18% of its AUM. In inflows, we saw investors move their assets to Treasuries and safe-haven assets. IEF, the iShares 7-10 Year Treasury Bond ETF saw some of the greatest inflows for the week, gaining over $1.5B in AUM. That was followed by SPTI, the SPDR Portfolio Intermediate Term Treasury ETF, gained over $787M in assets which accounted for a 64% increase in its AUM. This all according to our ETFG Fund Flow Summary.

ETFG Weekly Select List - Because of this strategy’s success, we’d like to highlight some substantial movement in the Consumer Discretionary portion of this week’s Select List to last. The SPDR S&P Retail ETF, XRT, held steady at the top spot on the list. Following that was PSCD, the Invesco S&P SmallCap Consumer Discretionary ETF which knocked XHB, the SPDR S&P Homebuilders ETF, down one spot to 3rd place. Rounding out the list was a swap between ECON , Columbia Emerging Markets Consumer ETF and PEJ, Invesco Dynamic Leisure and Entertainment ETF, which finished 4th and 5th on the list respectively, as opposed to last week when they finished in the opposite order.

As the Coronavirus seems like it will inevitably continue to spread, we will be paying close attention to how investors react to any news coming from Global governments and health agencies.  Last week, President Trump’s remarks on the spread of the virus did very little to calm the fears and unknowns in the Markets. With another week of pattern studies of the Virus and more caution taken by both the US and other Countries, some good news would be a welcome sign to get the markets back on track.

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.

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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