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.
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