Tuesday, December 27, 2016 - Christmas Eve arrived and there was only one event more anticipated than Santa coming to town as the Dow Jones Industrial was well on its way to 20,000 and seemed like an inevitable event. It wound up falling short for the time being but investors are still holding their heads up high as the markets appear to be finishing up nicely for 2016.
We again saw money flowing into ETFs last week where as of Wednesday, already over $7B poured into the Developed Market ETFs according to ETFG Fund Flows summary. One prime beneficiary of these fund flows was the RiverFront Dynamic US Flex-Cap ETF (RFFC). It saw $2.76M in net inflows by Wednesday which may not be a big chunk of the $7B that went into Developed Market ETFs but does make up for 33% of the ETF’s total AUM. RFFC is an actively managed ETF that does not follow an index. The fund’s portfolio is assembled by the subadvisor who selects securities based on several core factors such as value, quality and momentum.
Moving on to the ETFG Quant Movers, the Pacer Autopilot Hedged European Index ETF (PAEU) and the KraneShares CSI China Internet ETF (KWEB) added the most points for the week which were 9.31 and 8.93 respectively. Due to these jumps, PAEU has a score of 59.8 and a grade of “B” in our Quant ratings and KWEB scores at a 58.4 and also holds a “B” grade.
Our Red Diamond Risk Rating report only carries one ETF with a 10 out of 10 risk rating. That ETF is the Direxion Daily Latin America Bull Shares (Triple Levered). The fund seeks 300% return of the S&P Latin America 40 Index and though it may be up slightly for the month of December, our models indicate that it may be a high risk going forward.
There have been major swings in the market this year and emotions were plentiful but looking back and seeing that the 3 major indexes are all up healthily in 2016 can only make this joyous time of year a little more sweet for investors. With only 4 trading days left in the year, we will soon put this one in the books and open up a new chapter for 2017 that is sure to be filled with even more of the usual and perhaps some of the unusual; fluctuations, head scratchers and uncertainty!
From the ETFG family to yours, we would like to once again wish happy holidays to all!
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