Tuesday, January 17, 2017

4th Quarter Earnings Season

Tuesday, January 17, 2017 - With the beginning of the fourth quarter's earnings season, major U.S benchmarks ended the week with mixed results. The Dow Jones Industrial Average was off .4%, the S&P 500 index dropped .1% and the NASDAQ eked out a gain of 1%.

Financials, which have been outperforming since the election of Trump, ended on a high note. Most of the earnings released this week were from major banks. Bank of America and JP Morgan Chase outperformed expectations, while on the other hand, Wells Fargo fell short of estimates. During earnings seasons, we review the ETFG Equity Exposure report to determine which ETFs carry the greatest exposure to these stocks. The ETFs with the greatest collective exposure to these three stocks are XLF, Financial Select Sector SPDR Fund, VFH, Vanguard Financials Index Fund and FTXO, First Trust NASDAQ Bank ETF, which hold 8%, 6.4% and 4.07% respectively.

Some other sectors also squeaked out small positive margins - Industrials, Consumer Discretionary, Information Technology and Healthcare had respective returns of .33%, .31%, .27% and .11%. Some of this was caused by the good news data that came out that retail sales increased by 0.6% in December, specifically with gains in autos, furniture and online sales.

In our ETFG Quant movers section, we have CSLS, Credit Suisse X-Links Long/Short Equity ETN, HDEF, Deutsche X-Trackers MSCI EAFE High Dividend Yield Hedged Equity ETF and FNDE, Schwab Fundamental Emerging Markets Large Company Index ETF as the Biggest Gainers for the week. They gained 13.74%, 11.05%, and 9.75%.

The 3 funds that dropped the most in our ETFG Quant score were BWV, iPath CBOE S&P 500 Buy Write Index ETN, INCO, EGShares India Consumer ETF and SILJ, Purefunds ISE Junior Silver Small Cap Miners/Explorers ETF. They dropped 17.11%, 9.78%, and 9.51% respectively.

On the Weekly ETFG Select List, 3 new funds made it to the top spot in their respective categories: XRT, SPDR S&P Retail ETF, moved from the 3rd spot to first in the Consumer Discretionary category, BBH, VanEck Vectors Biotech ETF, moved to number one in the Health care category and EMIF, iShares Emerging Markets Infrastructure ETF, was the number 1 ranked in the Theme category.

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 of or from that investment to the investor.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.