Monthly Reselection - ETFG Dynamic Indices

ETFG conducted its monthly rebalance this week for both of our Smart Beta Indices - the ETFG Quant Equity 12 (symbol: ETFGQE12) and the ETFG Quant Equity 10 (symbol: ETFGQE10) that now head into their 22^nd month of existence.  Here are the new constituents for these two dynamic indices:

ETFGQE12		ETFGQE10
DIA		ADRE
ECON		DIA
EEM		ECON
EIDO		EIDO
EWY		EWY
FBT		FXI
FXI		IDX
OEF		OEF
OIH		OIH
QQQ		PXI
SOXX
XOP

All statistics, performance measures and metrics for these and other ETFG Indices are contained in the Monthly Index Reports, which can be found here:

·         Monthly index Report - ETFGQE10

·         Monthly Index Report - ETFGQE12

The ETFG Quant Equity 12 (Golden Dozen) is comprised of the top 12 equity ETFs as ranked by the ETF Global (Index Sponsor) Quant model that also meet the liquidity requirement.  The selection pool includes all U.S. listed, equity ETFs, excluding levered and inverse funds, as well as, those funds with average daily trading value of less than 5M USD. The ETFG Quant model assigns a daily ranking to all relevant products using proprietary algorithms and employing dozens of industry metrics to gauge how likely an equity ETF will outperform the market in the foreseeable future.  Selection is performed prior to trading on the third Friday of each month.  The portfolio is equally weighted and reconstitutes monthly on the second trading day following selection.  The ETFG Quant Equity 10 follows the same methodology but without the liquidity screen.

For more detail, information and statistics, please go to ETFG Indices.  Thank you for reading ETFG perspectives!

March Liquidation Watch List

During the month of February, we saw an increase in ETF Closures with the YTD number of Exchange-Traded-Products (ETPs) who have announced and/or actually closed – the YTD list now totals 14 closings which on an annualized basis represents a sharp increase from previous years. 

It seems no surprise that the number of closings increased as the Liquidation Watch List also swelled to a record number in listing 98 products this month.  This eclipses the previous record of 91, just one month earlier.  While these increases continue on the closing side, there seems to be no reduction in new products flooding the market with over 40 new ETPs introduced thus far in 2014.

The March 2014 Liquidation Watch List is dominated by Equity ETFs totaling 49.  These 49 equity funds are spread almost evenly among three categories:  Broad Equity, Sector and Style/Strategy.  Commodity ETPs have the second largest representation on the list with 26 funds.  Additionally, there are 11 Fixed Income ETPs, 7 Currency ETPs and 5 Multi-Asset ETPs that round out the March Liquidation Watch List.

As always, the relative size of these products’ populations by asset class provide important insight as well.  While equity products may dominate this month’s Liquidation Watch List in absolute numbers, the commodity ETPs certainly represent a far greater relative percentage of their respective asset class as there are multiple times the number of equity funds within the ETP universe than there are commodity products.

Please find this month’s Liquidation Watch list and other related analysis here ETFG Liquidation Watch List.   Thank you for reading ETFG Perspectives.

April 8th - New York City

ETF Global has been selected by co-producers The Expert Series & WealthManagement.com to facilitate the 2^nd ETP Trading & Investing Symposium on April 8^th  in New York City.  View Press Release

For those not in attendance at the inaugural event last September, this dynamic symposium brings together some of the brightest minds in Capital Management and the most widely recognized experts in Exchange-Traded-Funds.  With its roots reaching back to research and academics, the ETP Trading & Investing Forum is a very different type of industry meeting.  These sessions provide for renowned speakers to address cutting edge topics within a vibrant and intimate learning atmosphere.  Sessions are capped for in-person attendance (200 on April 8^th) while the Continuing Education qualified video content will be available both on Expert Series TV and WealthManagement.com.

The forum is comprised of two half-day sessions with the morning session (8:00-12:15) addressing the Wealth Management audience and the afternoon session (1:00-5:15) addressing the Institutional audience.  Both sessions will be held on Tuesday, April 8^th at the NYSSA conference center in Times Square (1540 Broadway).

For complete event details including the agendas, registration and sponsorship opportunities, please visit www.expertseries.org  We look forward to seeing you there!

Thank you for reading ETFG Perspectives! 

Weekly Equity Select List - 3.4.14

With uncertainty, may come opportunity and clearly the global markets are reacting to much of the uncertainty that exists in certain locations such as the Ukraine.  As such, this week’s Select List may, in part, reflect a reaction to that uncertainty with a higher aggregate scoring in some of the larger and more established groups.

The ETFG Select List features the 5 most highly-rated equity ETFs by Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.  For this coming week, below please find those groups and the Top 5 ETFs that comprise the highest group average by Sector, Geography and Strategy:

Sector:  This week’s top rated group but average ETFG Quant score is the energy sector.  This reflects a rotation from the previous week’s top rated group which was the Basic Materials sector.

Sector:  Energy                                 Group Average:  63.98
Rank	Ticker	Focus	Region	TER	Risk	Reward	Quant
1	XOP	Energy	North America	0.35%	5.28	7.83	66.80
2	XLE	Energy	North America	0.17%	3.92	8.08	66.40
3	OIH	Energy	Global	0.35%	5.35	7.54	63.00
4	IEO	Energy	North America	0.46%	4.73	7.34	62.00
5	PXI	Energy	North America	0.66%	5.28	7.03	61.70

Geography: Interestingly, the Geographic Region top rated group remains the Asia-Pacific Region and perhaps here is where uncertainty may in part provide opportunity.

Geography:  Asia-Pacific             Group Average:  66.54
Rank	Ticker	Region	Focus	TER	Risk	Reward	Quant
1	EWY	Asia-Pacific	Broad Equity	0.61%	4.10	10.00	73.00
2	IDX	Asia-Pacific	Broad Equity	0.58%	6.15	9.26	66.90
3	EIDO	Asia-Pacific	Broad Equity	0.61%	4.93	9.22	66.70
4	FXI	Asia-Pacific	Large Cap	0.73%	5.45	8.29	64.10
5	HAO	Asia-Pacific	Small Cap	0.75%	5.80	8.37	62.00

Strategy:  The Strategy top rated group also transitioned this week from Broad Equity to Large Cap.

Strategy:  Large Cap                        Group Average:  65.66
Rank	Ticker	Focus	Region	TER	Risk	Reward	Quant
1	ADRE	Large Cap	Emerging Markets	0.30%	5.42	8.97	67.30
2	ONEK	Large Cap	North America	0.20%	4.99	9.16	67.00
3	VUG	Large Cap	North America	0.10%	2.87	8.78	66.20
4	FXI	Large Cap	Asia-Pacific	0.73%	5.45	8.29	64.10
5	IVE	Large Cap	North America	0.18%	2.86	8.07	63.70

This ETFG Select List is meant to be a quick reference guide and not to replace checking the daily ETFG Quant Rankings, Green Diamond Reward Ratings and Red Diamond Risk Ratings.  To best support the ETF selection process, ETF Global strongly encourages users to perform a more comprehensive review by utilizing the additional tools and resources available at www.etfg.com to further research and diligence exchange-traded-funds.

Thank you for reading ETFG Perspectives!