Laissez Les Bon Temps Rouler

The Trump Rally marches on as US stocks continue to march onto new highs with the S&P 500 up 0.069% for the week and the NASDAQ eking out a rise of 0.12%. Nevertheless, no one piece of news seemed compelling enough to continue the run of the bulls, unless of course one plans the conquest and plundering of any one of the newly discovered planets this week by NASA.

Controversies on the topics of immigration, health care reform and invites to presidential press conferences dominated the week’s news – hardly the news to support economic confidence. Fed policy increasingly appears to be hawkish as well. Given this backdrop, could it be that the US stock market must be driven by the animal spirits unleashed by the excitement of the Trump Presidency? Sooner or later the excitement will die down and investors will focus on Republican deliverables…time will tell.

All eyes will be focused this week on the President’s first address to the Joint Session of Congress on Tuesday Night – coincidentally Fat Tuesday. Investors will be looking for details on any fiscal policy spending plans, tax reform, regulation relief, healthcare and of course the usual social topics of border control, immigration, etc. While animal spirits maybe driving the stock market, there appears to be a flight to quality by international investors to Treasuries and Bunds – probably due to concerns on the outcome of the French and Dutch elections.  Also, BREXIT appears to be heading to a harder landing than expected.  We expect Greece debt to begin to reappear in the headlines as well.

For investors betting on Reflation, Financials, particularly Regional Banks, Materials, and Industrials continue to be good bets. Looking at our ETFG Quant Movers List, we see a big move of over 31% for SEA – a bet on Global Trade Recovery as well as continued strength in Commodities and Energy with gains in FCG, PICK, XLE.   For pure play in Infrastructure, check TOLZ.

Thank you for reading ETF Global Perspectives!

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_____________________________________________________________

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.

Registration Now Open - Spring 2017 ETP Forum!

ETF Global is excited to once again have our Director of Research, Chris Romano, serve as Chairperson for The Spring 2017 ETP Forum which will be held on Friday, April 7^th at The New York Athletic Club - registration is now open and all event information will be available at: www.etpforum.org

Here are a list of panels and presentations:

• The First 100 Days of the New U.S. President
• New-to-Market ETF Roundtable
• Best Execution/Liquidity/Trading Challenges
• Today's Complex World of Investing for Yield
• Differentiating between Strategic Beta Strategies
• The Future of ESG Exchange-Traded-Funds
• Best Investment Opportunities in 2017

Agenda, Registration, Sponsorship and important conference updates will be available at www.etpforum.org

See you soon and 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.

The Political Noise and Market Drums Beat On

Another week, another notch put in the major U.S. indexes’ belts. Yes, though this is the month of Groundhog Day, we are not just repeating the past as the Dow, S&P and Nasdaq all reached new milestones with the close of the market Friday. This continued growth could give thanks to strong economic data and Fed Chairwoman Janet Yellen who spoke in front of congress on February 14^th and 15^th. Fed Chairwoman Yellen’s remarks reflected that the growth of the U.S. economy would continue at a moderate rate and that the outlook was surely getting better.

That sent the Dow to record levels which of course was welcomed by those invested in the $17B SPDR Dow Jones Industrial Average ETF (DIA). The ETF hit its highest level ever on Thursday closing at 206.48. Same goes for SPY that closed Friday at 235.09 and QQQ which closed at 129.81 on the same day, both at record highs.

Although those funds may be preforming great, our ETFG Quant Movers paints a different landscape of where investors may find Alpha. Last week, iShares Edge MSCI Intl Size Factor ETF (ISZE), Deutsche X-trackers MSCI EAFE High Dividend Yield Hedged Equity ETF (HDEF) and SPDR MSCI China A Shares IMI ETF (XINA) had the most positive movement in the scoring model. They gained 18.17, 12.17 and 11.01 points and sport grades of B, B and C respectively in the ETFG Quant Model. All three funds have heavy international exposure.

On the opposite end of the scoring spectrum, triple levered products led the way again last week as being the riskiest. In fact, they were the same ETPs as last week, those being GASL, LBJ, GASX and ERX. This week they carry Red Diamond Risk Scores at 10, 9.39, 9.36 and 9.09 respectively.

Niche funds continue to find their way into the market. Global X just launched the Founder Run company ETF (BOSS) last Wednesday. This ETF tracks the Solactive U.S. Founders-Run Companies Index and is intended to track U.S. Large and Mid-cap companies where the CEO is also the Founder. BOSS is equally weighted and holds positions in companies such as Nvidia, Grubhub and Netflix.

Though the political spectrum seems divided more than ever, one would think it fell on the market’s deaf ears as they continue to go higher. We will see if they can continue their hot streak this week as the Fed minutes from the January 31st-February 1st meetings are going to be released along with January sales of newly built homes. Of course, all that news would be Trumped if our new President releases any more detail on his faster-than-expected tax reform plans.

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.

Registration Closing - Spring 2017 ETF Global® Portfolio Challenge!

Join the students from over 250 schools who have played and don't get left out of the largest virtual investment contest of its kind!

There is still plenty of time to register and participate in the Spring 2017 ETF Global^® Portfolio Challenge - registration is open through Tuesday, February 21st at www.etfportfoliochallenge.com

The ETF Global^® Portfolio Challenge provides college students worldwide the opportunity to vie against their fellow classmates and other schools for some very cool prizes intended to benefit both their education and their careers. The contest is FREE and requires no purchase at any time.

Each student constructs their own virtual portfolio of between 4-10 ETFs and competes on the performance throughout the school semester. Any and all Undergraduate and Graduate students can register - sign up today!

All details can be found at www.etfportfoliochallenge.com

We wish our players all the best in this virtual investment competition and thank you for reading ETF Global Perspectives!

#etfwizards

_____________________________________________________________

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.

Milestones and Valentine's Day Testimony

It was another week for the record books as all three major U.S. indices hit record highs and the so called “Trump Rally” continued. Also announced this week, Vanguard continues to win with their low cost, passively managed index funds. The U.S. based money manager now tops $4 trillion in AUM.

This surge in assets comes with lofty projections for the ETF industry and rightfully so. Price Waterhouse Coopers released a research report projecting $1.1 trillion of assets pouring into the ETF Industry by 2018 and over $2 trillion more by the end of 2021. That would bring the fast growing industry to over $6 trillion in assets.

This week the PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC) and the PowerShares Contrarian Opportunities Portfolio (CNTR) led the way in our ETFG Quant reward model. Both funds are currently sporting an “A” rating and have scores of 70.5 and 75.4 respectively.

In our Quant Movers, the Deutsche X-trackers MSCI EAFE Small Cap Hedged Equity ETF (DBES) and the Vanguard High Dividend Yield ETF (VYM) had the highest total weekly change. They moved 14.44 and 11.82 respectively. DBES currently holds a “C” rating on our Quant score and VYM holds a “D.”

Within our Risk Ratings, Direxion has 4 of the top 5 riskiest funds this week according to the ETFG Red Diamond Risk Model. GASL, which is a triple levered, bullish on gas fund, lead the way with the highest risk score at 10. That was followed by GASX, another gas related fund, LBJ, a Latin American bull fund and ERX, an Energy bull fund. All of them are tripled levered which pulls down the structure score in our model - learn more here.

The coming week is sure to be a busy one led by Fed Chairwoman Janet Yellen testifying before congress on Valentine’s Day. She will be delivering her semiannual monetary policy report before the U.S. Senate on Tuesday and will then make her way to the House of Representatives on Wednesday. This is the first time she will appear before lawmakers since the start of the Trump Administration and you can rest assured that the markets will be listening intently.

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.

Spring 2017 ETF Global Portfolio Challenge - Now Over 250 Schools!

The ETF Global^® Portfolio Challenge provides college students worldwide the opportunity to vie against their fellow classmates and other schools for some very cool prizes intended to benefit both their education and their careers. The contest is FREE and requires no purchase at any time.

Each student constructs their own virtual portfolio of ETFs and competes on its performance throughout this school semester. Any and all Undergraduate and Graduate students can register at www.etfportfoliochallenge.com through February 17^th - sign up today!

Registration remains open and all details can be found at www.etfportfoliochallenge.com

We wish our players all the best in this virtual investment competition and thank you for reading ETF Global Perspectives!

#etfwizards

_____________________________________________________________

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.

Spring 2017 ETP Forum - Friday, April 7th at The New York Athletic Club

The Spring 2017 ETP Forum will be held on Friday, April 7^th at The New York Athletic Club - all event information will be available at: www.etpforum.org

The event's agenda strives to reflect those trends emerging most prominently within the markets and the recent developments within the Asset Management arena. Please see below for a list of panels under consideration:

• The First 100 Days of the New U.S. President
• New-to-Market ETF Roundtable
• Best Execution/Liquidity/Trading Challenges
• Differentiting between Strategic Beta Strategies
• The Future of ESG Exchange-Traded-Funds
• Best Investment Opportunities in 2017

Once again, all event information including Agenda, Registration, Sponsorship and important conference updates will be available at www.etpforum.org

See you soon and 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.

Super Bowl Monday

Monday, February 6, 2017 – Congratulations to the Super Bowl Champion New England Patriots and all their fans for pulling off the big comeback!

Week two of the Trump administration was marked by swings between gains and losses in the equities markets as a flurry of executive actions on immigration, trade and regulation gave rise to fresh volatility. A controversial immigration ban stoked uncertainty in early week market action, sending the Dow Jones Industrial Average to its worst day of the year on Monday. Markets appeared to be heading for a weekly decline after mixed earnings releases and decisions by the ECB, BOJ, and Fed to leave monetary policies unchanged failed to provide a catalyst to reverse early week loses. However, a better than expected January payrolls report and Trump's directives to overhaul the Dodd-Frank Act and relax banking regulations injected new optimism in the markets on Friday and helped lift U.S. equities into positive territory for the week. The S&P 500 and NASDAQ 100 each added 0.1% for the week, while the DJIA shed 0.1%, despite posting its largest advance on the year on Friday.

Financial sector and bank ETFs were among the top performers for the week, after receiving a major boost on Friday from Trump's decision to begin dismantling Dodd-Frank. Within the financial community, Dodd-Frank regulations were viewed as excessively burdensome and complex. These regulations and tighter capital requirements were viewed as particularly damaging to smaller regional and community oriented banks. Therefore, Friday's moves to simplify and ease banking regulations provided immediate support to regional bank ETFs. The iShares U.S. Regional Banks ETF (IAT), SPDR S&P Regional Banking (KRE), PowerShares KBW Regional Bank Portfolio (KBWR), and First Trust NASDAQ ABA Community Bank Index Fund (QABA) all benefited from the rally, rising 2.04%, 2.4%, 2.6% and 2.3% respectively on Friday. Broader sector funds, like the Financial Select Sector SPDR (XLF) and Fidelity MSCI Financials Index ETF (FNCL), also benefited from Friday's executive order, advancing 1.8% and 2.03%. This in conjunction with continued improvements in earnings could help the financial sector maintain its momentum in the months ahead.

Our Quant Movers list underscores the continued post-election shift from defensive assets towards cyclical stocks. Favored by investors last year amid a period of sluggish global growth and ultralow interest rates, ETFs such as PowerShares S&P 500 Low Volatility Portfolio (SPLV), Reality Shares DIVCON Dividend Defender ETF (DFND), PowerShares High Yield Equity Dividend Achievers Portfolio (PEY) have lost some of their appeal as growth expectations have strengthened since November's election. SPLV, DFND, and PEY all finished the week amongst the top 10 losers in our Quant Movers list. Conversely, the highly cyclical iShares Russell 2000 Growth ETF (IWO) finished as the top gainer on our Quant movers list for the week.

While earnings season and central bank policy decisions have wielded a disproportionate influence on market expectations and activity in recent years, it appears this influence has been moderated with the arrival of our new administration. It seems now, given the boldness and unpredictability of our new president, traditional drivers of market activity have been subordinated by political considerations. This may have important implications ahead as our increasingly volatile political atmosphere may soon translate into fresh market volatility.

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.