Monday, July 18, 2016

Sticking to Our Knitting

After covering the markets for so many years, it nevertheless continues to amaze me as to how much the world can have occurring of epic, historic and and unfortunately tragic proportions and how the markets can absorb it all with a comprehensive, net impact. Despite the world reeling from the tragedy in France, continued violence on domestic soil – our thoughts and prayers continue for the victims and their families in Dallas and now Baton Rouge, this week's powder keg of a Republican National Convention and the uprising in Turkey, overall the markets are coming off another very good week. The S&P 500 is up roughly 8% since the Brexit fallout and up 1.5% this past week alone. The Dow Jones Industrials gained a bit over 2%. Naturally, there is no shortage of events coming up this week to watch and see how the markets will respond.

Perhaps times like this with so much going on require that we embrace the old saying of "stick to your knitting."  We therefore focus on what we can control like making sure we are utilizing the many tools and analyses at our disposal.

ETFG Quant Movers - This week we find TUSA, HEZU, HEWJ, and IEUS in the top 4 of biggest gains in our Quant movers section.  All 4 funds increased their ETFG Quant score by 10% this week and all of these ETFs are broad equity developed markets.

Weekly Select List - Although our Weekly Select List remained pretty stable from last week to this week. We had a few new ETFs entering the top 5 of their respective categories. This week CARZ is our number 3 rated Industrials ETF, and our number 2 rated Global Region ETF. Another big mover in our Select List was XOP which was not even in the top 5 last week in any category to being number one in the energy sector and number 3 in the North American region.

For more information on our ratings and biggest changes, be sure to check out the weekly Quant Mover Section for Gainers and Losers as well as our Weekly Select List.

On the lighter side, Nintendo has taken the world by storm. For those who are not familiar, on July 6, 2016 they released an app called Pokémon Go. The game allows players to capture, battle, and train virtual creatures, called Pokémon, who appear on device screens as though in the real world. In just a little over a week the game has over 21 million active users all over the world. With the launch of Pokémon Go, Nintendo stock is up around 20% this week.  Looking at our ETF Exposure report we can see that Nintendo is owned by 46 different ETFs.  The biggest owner of Nintendo is GAMR, Purefunds Video Game Tech ETF.  5.41% of the ETF is allocated to Nintendo Stock. It comes as no surprise that since the launch of Pokémon Go the ETF is up over 4%. The second biggest holder of Nintendo is IPK, S&P International Technology Sector ETF, 1.94% of their portfolio is in Nintendo. Like with GAMR since the inception of Pokémon Go, they have had great returns, roughly 10.3%

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