Featured Speaker Series - Conor Platt, Etho Capital

Wednesday, April 26, 2017 - Featured Speaker Series - This specialized blog series highlights dynamic speakers from the most recent ETP Forum and offers a window into the insight that they share with the attendees. As our speaking faculty continues to offer thought leadership on the most cutting-edge investment strategies, we use this feature to supplement the event’s panel discussions and share select speaker’s insights – we hope that you enjoy this special series of posts.

As we continue this series of ETP Forum Featured Speaker Series, we highlight Conor Platt, co-founder and CEO/CIO of Etho Capital, who served as a panelist at the Spring 2017 ETP Forum. Please read below for a recap of our ESG panel and how Conor is making his mark on the ESG landscape.

Concurrent to the explosive rise of passive investing and ETFs, has been a surge in investor interest in Environment, Social and Governance (ESG) issues. Demographic trends, pressing social and environmental concerns, changing corporate culture and wider availability of data have helped give rise to a burgeoning class of socially conscious investors that aim to align their investments with personal values. While around for several decades, ESG strategies were previously thought to be incompatible with the goal of financial returns and prohibitively expensive for non-institutional investors. However, a growing body of research indicates that ESG-friendly investments actually tend to outperform non-ESG alternatives. Companies with effective governance and higher quality management of social and environmental issues tend to display better operating performance and profitability. This has served to broaden the appeal and accelerate the integration of ESG, as investors across the spectrum have realized the social and financial benefits of ESG investing. Additionally, the advent of ETFs has helped democratize the ESG landscape by enabling investors to channel their ESG allocations into a transparent, low-cost investment vehicle. The supportive body of evidence, in tandem with the rise of ETFs, has helped thrust ESG investment strategies into the mainstream.

Product offerings and assets under management in ESG strategies have proliferated during the past decade and are poised for continued expansion. As the ESG space continues to evolve, expand and grow in prominence and complexity, the need for ESG education will be imperative. During the Spring 2017 ETP Forum, our panel of ESG experts gathered to discuss how to navigate this space and make the most impact with your capital. One of our panelists, Conor Platt, shed light on the increasingly complex ESG landscape and opportunities available for investors in the ETF wrapper.

Through his extensive background on Wall Street and in the hedge fund industry, Conor came to recognize the immense potential of ESG investment strategies. Conor eventually combined his analytical expertise with ESG-sustainability data to create a systematic process that focuses heavily on companies’ operational efficiency, ESG-sustainability and overall risk management. Etho Capital, where Platt is the co-founder and CEO/CIO, has been at the forefront of the ESG-ETF revolution, providing thought leadership and investment solutions for investors.

In November 2015, Etho Capital broke new ground in the ESG space with the launch of the Etho Climate Leadership U.S. ETF (ETHO). ETHO represented the first broad-based, diversified, socially responsible and fossil-free ETF that did not have exposure to the energy sector. Based on Etho Capital’s flagship Climate Leadership (US) index, the ETF tracks over 350 companies that have the smallest carbon footprints in their industries. The firm employs a positive selection methodology to review more than 6,000 of the most commonly traded public companies and identify the most carbon-efficient “climate leaders” in each industry. All fossil fuel, tobacco, weapons, and gambling companies are eliminated from the index. Lastly, a screen is conducted based on environmental, social, and governance performance data with expertise from NGO partners and input from global stakeholders.

In addition to its strong ESG merits, ETHO has delivered consistent outperformance. ETHO has steadily outperformed the market, delivering a 17.36% return versus the S&P 500’s 13.40% since ETHO’s inception. Given its robust ESG credentials, history of outperformance, and current 7.29 ETFG Green Diamond Reward rating, ETHO stands out among its ESG peers.

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.

The Focus on News Headlines

Monday, April 24, 2017 - Stocks broke their two week losing streak last week as investors brushed off disappointments on healthcare reform and foreign jitters leading the S&P 500 to rise up +0.85 and to close at 2348.69 not far off its all-time high of 2395.96. The NASDAQ 100 and NASDAQ Composite both hit new highs giving YTD price returns of + 11.89 and +9.8%. Investors increasingly began to sober up on the likely timeline necessary for Republicans to deliver on anticipated economic “goodies” like infrastructure spending, healthcare reform and tax cuts. By late last week, investors began to focus on the next moves by the Trump Administration particularly in foreign policy and the planned announcement this week on his long anticipated tax cut proposal. Investors brushed aside concerns of a government shutdown this Friday.

Bears seem concerned that the popular indexes are being driven by a small number of tech stocks providing index gains with the ten largest stocks contributing to 39% of the S&P 500 index’s first quarter gain accordingly to Birinyi Associates. Yet, history shows that big markets gains are frequently lead by a small vanguard of stocks leading the charge. We continue to see elements that make us believe that the animal spirits unleashed by the excitement of the Trump Presidency are alive and well.

On the international front, there is no end to worries ranging from North Korean saber rattling, French elections to the breakdown of law and society in Venezuela – a major oil producer. For this reason, Gold continues to be an attractive store of value – with its price up nearly 12% YTD as are Treasuries with a continued downward drift.

Macron et Le Pen!  Que’est que c’est?  So the outcome of the first round of French elections shows that the traditional divide between leftist and rightist parties in Western Democracies has given way to a new divide between Globalists and Nationalists with Macon representing the former and Le Pen the latter. Both are considered to be relative outsiders to electoral politics – another trend likely to continue for the short term.

While European Markets rallied this morning on the election outcome, since Macron is favored for the May 7^th runoff, let us not forget that pollsters have largely missed major upsets the past 12 months. An upset by Le Pen could provide a buying opportunity. Also, BREXIT appears to be heading to a harder landing than expected. Expect debt and insolvency issues for Greece and Italy to reappear in the headlines as well. Nevertheless, European and foreign markets in general look less expensive than US equities. Our Models continue to favor the Trump trade betting on Reflation focusing on Financials, particularly Regional Banks, Materials, and Industrials with smaller bets on Technology and Energy.

In looking at our ETFG Fund Flows for March, investors favored Financials with over $556.97M in new funds flowing into ETFs.  Likewise, Industrials saw positive flows of $194.86M and Technology $22.36M.  Utilities saw significant inflows of $111.55M due to continued outlook for low interest rates and deregulation changes that favor some utilities.

Looking at our Weekly Percentage Gainers in our Quant Scores, VGT, DGRW, KIE, XLF, and REMX moved up.  Our top 25 Quant Rankings show the following ETFs with relatively high scores of 60 or better to implement the above themes:  CNTR, EWY, PGJ, FNI, PZI, DWAS, EWSC, EEM, IEV, WMW, JHMI, EWQ, QQQ, EQWL and EFA to name just a few. We suggest looking over the Quant Movers Lists and Select Lists to zero in on attractive plays.

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.

Fidelity Investments Presents the Week 9 Leaderboard

Leaderboard Presented by Fidelity Investments!

One week remains in the Spring 2017 ETF Global® Portfolio Challenge and consistent with this semester’s trend, there was a sharp repositioning of our week-to-week leaderboard. Amid escalating market volatility, week 9 transpired in an environment that magnified gains and losses in our participants’ portfolios. Those well-positioned to weather this heightened volatility were rewarded, while some with riskier bets lost ground this week. See below for how things stand as we approach the final week of the Spring 2017 ETF Global® Portfolio Challenge.

Week 9 (4/14-4/21):

Name	School	Return
Ethan O’Donnell	St. John Fisher College	21.51%
Cole Smith	St. John Fisher College	19.82%
Phat Huynh	St. John Fisher College	18.65%
Carlin Lydon	St. John Fisher College	17.81%
John Lehsten	St. John Fisher College	16.84%
Sagar Jain Prabhakar	University of Manitoba	15.60%
Steven Barber	Rochester Institute of Technology	15.37%
David Irizarry	University of Puerto Rio – Rio Piedras	13.46%
Michael Usherovich	Wilfrid Laurier University	13.34%
Kyle Reid	St. John Fisher College	12.81%

This week’s key takeaways – St. John Fisher College broke another milestone and continues its unprecedented run, as it represented all 5 of our students in the top 5 this week! Ethan O’Donnell reclaimed the top spot in our leaderboard and SJFC also had a sixth student in this week’s top 10 to boot. Sagar Jain Prabhakar from University of Manitoba, David Irizarry from University of Puerto Rio – Rio Piedras, and Michael Usherovich from Wilfrid Laurier University all performed well this week and maintained their positions in the top 10. Kyle Reid from SJFC and Steven Barber from Rochester Institute of Technology outperformed this week and both made their returns to the top 10.

Geopolitical tensions and waning economic optimism unleashed volatility and spurred a rally in safe haven assets this week. Not surprisingly, our top 10 leaders were well-positioned for this environment with allocations to traditional haven assets, like fixed-income and gold. Positions in the VanEck Vectors Gold Miners ETF (GDX), PowerShares DB Gold Fund DB Gold Inx Fund (DGL), SPDR Gold Trust (GLD), iShares Gold Trust (IAU), Vanguard Intermediate-Term Corporate Bond Index Fund (VCIT), Vanguard Short-Term Bond Index Fund (BSV) and AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT) helped our leaders navigate the choppy waters in this week’s markets. Some of our leaders also benefited from the rise in volatility by being long VIX products, such as the VelocityShares VIX Short-Term ETN (VIIX) and VelocityShares Daily 2x VIX Short-Term ETN (TVIX). Attesting to the diligence and savviness of our contestants, a couple of leaders held positions in funds far outside the mainstream, like Teucrium Soybean Fund (SOYB) and PowerShares Water Resources Portfolio (PHO). Allocations to these more esoteric funds underscores the tremendous amount of research our contestants put in to the portfolio challenge.

We are entering the final week of the Spring 2017 ETF Global® Portfolio Challenge and will be eagerly awaiting to see who finishes on top. Follow us on our website – etfportfoliochallenge.com – or blog – blog.etfg.com – to stay up-to-date and see what students are crowned the winners of the Spring competition!

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.

Featured Speaker: Brendan Ahern, Chief Investment Officer, KraneShares

Thursday, April 20, 2017 - Featured Speaker Series - This specialized blog series highlights dynamic speakers from the most recent ETP Forum and offers a window into the insight that they share with the attendees. As the speaking faculty continues to offer thought leadership on cutting-edge investment strategies, we use this feature to supplement the event’s panel discussions and share the full breadth of select speaker’s insights – we hope that you enjoy this special series of posts.

Each Fall and Spring we chair The ETP Forum which features some of the brightest minds in Capital Management who have consistently advanced new thought leadership in the arena of Exchange-Traded-Products. Today, we feature Brendan Ahern, Chief Investment Officer of KraneShares, who recently served as a panelist on the Smart Beta panel at the Spring 2017 ETP Forum on Friday, April 7^th at The New York Athletic Club.

Smart Beta strategies are soaring in popularity and now span just about all asset classes, sectors, geographies and investment factors. As investor adoption increases and Smart Beta products continue to proliferate, the need to differentiate within this category will only increase. KraneShares, a pioneer in China-focused ETFs, clearly understands this and illuminated their unique position within the Smart Beta space during the panel.

Despite the profusion of product offerings now available to investors, Smart Beta access to international markets remains limited. This is particularly true for the world’s second largest economy, China, which is notorious for its restrictions on foreign investors. Against this backdrop, KraneShares occupies a truly unique position within the Smart Beta landscape, with its innovative suite of Chinese ETFs.

KraneShares is one of only a select few ETF providers licensed to hold China A-shares as a Renminbi Qualified Foreign Institutional Investor (RQFII). Coincidentally, Brendan’s discussion on Smart Beta and opportunities that exist for investors in China coincided with KraneShares’ three-year anniversary of its pioneering KraneShares Bosera MSCI China A Share ETF (KBA). With a 5.44 ETFG Green Diamond Reward Score and over $56.9 million in AUM, KBA has steadily attracted interest from investors seeking exposure to the world’s second largest economy.

KBA breaks down barriers to investors by providing access to the Shanghai and Shenzhen Stock Exchanges, which are traditionally not available to U.S. investors. KBA's holdings are composed of the Mainland Chinese equities scheduled for inclusion into the widely-followed MSCI emerging markets indexes. With $1.6 trillion benchmarked to the affected indexes, full inclusion of Onshore Chinese equities could see significant flows into the securities KBA owns today.

Aside from providing entry to the difficult-to-access Chinese A Shares market, KraneShares also manages an innovative “all China” Smart Beta strategy with exposure to the "new China" economy. The KraneShares Zacks New China ETF (KFYP) is focused on those sectors/industries highlighted in China's Five Year Plan (FYP) which includes Technology, Consumer Staples, Consumer Discretionary and Healthcare. As China undergoes its transformation from a manufacturing-heavy to a consumer-driven economy, KFYP investors may stand to benefit by being underweighted in Manufacturing, Financials, Industrials and Heavy Materials that defined China’s past economic plans.

The sectors expected to benefit from the plan are evaluated and the stocks within each sector are subsequently ranked based on various investment factors, including price, cash flow, free cash flow, momentum and volatility. KFYP maintains a balanced market capitalization exposure to Large Cap, Mid Cap and Small Cap Chinese companies trading in Mainland China, Hong Kong and the United States. With its Smart Beta Access to the fastest-growing segment of the Chinese economy, KFYP offers investors an opportunity not found in other funds in the marketplace.

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.

Happy Easter & Passover

Monday, April 17, 2017 - Major U.S. indices lost small ground on this short, quiet week of trading all recording at least 1% declines. This came as geopolitical tensions heat up between the US and the likes of Syria, Russia, North Korea and Afghanistan. These events have sparked a scare in investors as the VIX index, which is used to gauge investors fear, reached its highest levels since the start of the Trump administration on Wednesday.

Though investors may be fearful, it did not stop them from pouring more money into Exchange-Traded-Funds. Developed Market ETFs notched another $6B under their belt this week through Wednesday, according to our ETF Global Fund Flow Summary.  The iShares Core S&P 500 ETF (IVV) was a big recipient of that accumulating over $1.5B in inflows this week. IVV now has over $95B in AUM and carries just an expense ratio of 4 bps.

In the ETF Global Quant scores, we see our model giving high grades to some major contrarian investments. First off is an actual contrarian fund, the PowerShares Contrarian Opportunities Portfolio (PSCC). According to our model, PSCC is looking incredibly undervalued compared to its history as our fundamental scores of P/E, P/CF and P/B all have a score of 97.8 out of 100. PSCC’s total Quant score is currently a score of 73 and it sports a grade of “A.”

The next ETF which is scoring high in our model may come as a surprise to many. The iShares MSCI South Korea Capped ETF (EWY) is currently sporting a grade of “A” and has a total score of 71.3 in our Quant model. Some of its highest grades come in the shorter term sentiment part of the model which includes the P/C ratio and Short Interest. As investors may be betting against the fund due to some of the previously mentioned political turmoil that is happening on the Korean peninsula, it is starting to look more attractive and undervalued. The Quant model takes an opposing point of view to Short Interest and P/C ratio and scores funds based on a 3-6 month outlook. You can check out more about the model here: About ETF Global Quant.

In our Quant movers section, the ALPS Medical Breakthroughs ETF (SBIO) gained the most ground notching a 8.07 total gain in its score. Though the Trump administration has been tough on the pharmaceutical industry, investors may believe that there will be growth to be had. Its fund flows have been basically flat throughout the last month only losing $1.33m out of its $100m AUM.

The biggest Quant loser last week belonged to the iShares MSCI Malaysia ETF (EWM). It lost 12.30 points to its score and currently sports a grade of “B.” Its sentiment scores in our model are bringing its grade down as its short interest and put/call ratio are not looking attractive.

Let’s see what next week brings in the geopolitical landscape and if investor fears continue to rise in this climate. Until then, let’s enjoy the nice spring weather and from all of us at ETF Global, we hope that you and your family had a Happy Easter and that tomorrow brings a joyous end to the Passover Season.

Thank you for reading the 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.

Actions and Reactions

Monday, April 10, 2017 - For the first time in a long while, we can finally say that there was bipartisan agreement this week. No, that’s not a belated April fool’s joke, rather a factoid from some current events that kicked off the second quarter. President Trump launched an airstrike this week on Syrian forces led by Bashar al-Assad. This was in response to al-Assad’s use of chemical warfare against civilians and rebel troops which killed over 60 people. The leader of the free world was met with something other than his usual backlash; support, not just by his counterparts in America but governments around the world. Though an attack like this always brings uncertainty, which is always a bad signal for the market, the sat relatively quiet all week with the major US Indices only taking minimal losses.

Our Top ETFG Quant Mover gains have come in internationally focused ETFs. This came mainly in Chinese focused ones as our model may have captured some signals from the recent Trump, Xi Jingping meeting. Names like the First Trust ISE Chindia Index Fund (FNI) and the Powershares Golden Dragon China Portfolio (PGJ) were both double digit gainers in their Quant scores. They both have an overall rating of B.

In ETFG Quant Mover losers, U.S. focused ETFs continued their trend downwards with many notching double digit loses. The model bought in names like iShares S&P 500 Value ETF (IVE), iShares Edge MSCI Min Vol USA ETF (USMV), FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and iShares US Financials ETF (IYF). They lost 13.63, 12.09, 11.67 and 11.30 respectively to their overall scores.  As mentioned last week, this could be due to the fact that the Trump trade is starting to slow down and investors may be weary that U.S. equities are currently overvalued.

In our Risk model, triple levered ETPs led the way again. The model takes into account the structure of the products which is why many triple levered products wind up being the most risky. These funds included three Direxion Funds, one based on Latin America (LBJ), another based on Natural Gas (GASL) and the last based on Energy (ERX). These all support overall risk scores of 10, 9.79 and 9.62 respectively.

Last week marked the start of Q2 for the U.S. economy but Q1 bought some big time inflows to the investment vehicle with U.S. Listed ETPs bringing in over $135B in assets. iShares Core S&P Small Cap ETF (IJR) was a big recipient of that money taking in over $29B during the 3-month period, according to the ETF Global Fund Flow summary. The fully indexed SPDR S&P 500 ETF Trust (SPY) was on the opposite end of that with investors pulling out over $1B during the same time period.

We are excited to see what this quarter has to bring for the Industry but from what we can see, there are no signs of it slowing down anytime soon! Be sure to keep up with some of the best ideas from the ETFG team by looking at our Weekly Select List. This list is determined by the top scoring products in our ETF Quant model.

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.

ETF Global® Dynamic Model Portfolios - 2Q Rebalance

Tuesday, April 4, 2017 - The new quarter kicks off a number of processes here at ETF Global and some that are of most interest are the reallocation and rebalancing of our Dynamic Model Portfolios.

Our proprietary, multi-factor models function as the engine behind our Model Portfolios and provide great insight into what products are scoring well:

Domestic Equity Allocations: We see a continued overweighting towards Small Cap and a tilt towards "Factor" products. The Factor tilt is both classic with the addition of Guggenheim S&P Smallcap 600 Pure Value ETF (RZV) and the more modern Factor-based PowerShares DWA SmallCap Momentum Portfolio (DWAS) which was carried over from last quarter. Most of the non-Small Cap exposure comes from the addition of Powershares QQQ Trust (QQQ).

International Equity Allocations: Exposure to the European markets increased with the addition of both SPDR EURO STOXX 50 ETF (FEZ) and iShares MSCI Spain Capped ETF (EWP) at the expense of APAC. The Emerging Markets' allocations continue to be tilted toward China.

Model Portfolio performance is available at ETF Global Model Portfolio Performance and an Overview of the program can be found here Program Overview

Below please find the 2Q 2017 “Base” 4 Portfolios:

Aggressive Global Growth - 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	8.0	Equity	Small Cap	North America	5.71	8.39	0.60
EEM	7.0	Equity	Broad Equity	Emerging Markets	5.68	8.02	0.72
EFA	10.0	Equity	Broad Equity	Developed Markets	4.40	7.48	0.33
EWP	5.5	Equity	Broad Equity	Europe	6.29	8.45	0.48
EWSC	8.0	Equity	Small Cap	North America	5.51	8.36	0.41
EWY	6.0	Equity	Broad Equity	Asia-Pacific	4.65	9.07	0.64
FEZ	10.0	Equity	Large Cap	Europe	5.12	7.53	0.29
QQQ	8.0	Equity	Large Cap	North America	3.19	7.77	0.20
RZV	7.5	Equity	Small Cap	North America	5.32	7.93	0.35
BNDX	2.0	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
IEF	5.0	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	3.0	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
DBV	5.0	Currency	Long/Short	Developed Markets	4.11	0.00	0.80
FTGC	5.0	Commodities	Broad Commodities	Global	4.82	0.00	0.95
SCHH	5.0	Real Estate	Real Estate	North America	3.71	0.00	0.07
Cash	5.0	Cash	Cash	North America

Moderate Global Growth – 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	10.00	Equity	Small Cap	North America	5.71	8.39	0.60
EEM	6.00	Equity	Broad Equity	Emerging Markets	5.68	8.02	0.72
EFA	10.00	Equity	Broad Equity	Developed Markets	4.40	7.48	0.33
EWSC	10.00	Equity	Small Cap	North America	5.51	8.36	0.41
EWY	7.00	Equity	Broad Equity	Asia-Pacific	4.65	9.07	0.64
FEZ	10.00	Equity	Large Cap	Europe	5.12	7.53	0.29
QQQ	7.00	Equity	Large Cap	North America	3.19	7.77	0.20
BNDX	4.00	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
IEF	10.00	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	6.00	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
DBV	5.00	Currency	Long/Short	Developed Markets	4.11	0.00	0.80
FTGC	5.00	Commodities	Broad Commodities	Global	4.82	0.00	0.95
SCHH	5.00	Real Estate	Real Estate	North America	3.71	0.00	0.07
Cash	5.00	Cash	Cash	North America

Balanced Global Growth & Income – 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	6.00	Equity	Small Cap	North America	5.71	8.39	0.60
EEM	4.00	Equity	Broad Equity	Emerging Markets	5.68	8.02	0.72
EFA	7.00	Equity	Broad Equity	Developed Markets	4.40	7.48	0.33
EWSC	6.00	Equity	Small Cap	North America	5.51	8.36	0.41
EWY	4.00	Equity	Broad Equity	Asia-Pacific	4.65	9.07	0.64
FEZ	7.00	Equity	Large Cap	Europe	5.12	7.53	0.29
QQQ	6.00	Equity	Large Cap	North America	3.19	7.77	0.20
BNDX	8.00	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
IEF	8.00	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	6.00	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
SCHO	8.00	Fixed Income	Treasury	North America	2.59	0.00	0.06
SCPB	6.00	Fixed Income	Investment Grade	North America	1.69	0.00	0.12
VMBS	4.00	Fixed Income	Agency MBS	North America	2.35	0.00	0.07
FTGC	2.50	Commodities	Broad Commodities	Global	4.82	0.00	0.95
SCHH	2.50	Real Estate	Real Estate	North America	3.71	0.00	0.07
Cash	15.00	Cash	Cash	North America

Conservative Global Income – 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	5.00	Equity	Small Cap	North America	5.71	8.39	0.60
FEZ	5.00	Equity	Large Cap	Europe	5.12	7.53	0.29
BNDX	7.00	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
BWX	7.00	Fixed Income	Broad Sovereign	Global Ex-U.S.	5.65	0.00	0.50
IEF	10.00	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	5.00	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
SCHO	10.00	Fixed Income	Treasury	North America	2.59	0.00	0.06
SCPB	10.00	Fixed Income	Investment Grade	North America	1.69	0.00	0.12
TLT	7.00	Fixed Income	Treasury	North America	5.06	0.00	0.15
VCIT	6.00	Fixed Income	Investment Grade	North America	3.53	0.00	0.07
VMBS	8.00	Fixed Income	Agency MBS	North America	2.35	0.00	0.07
Cash	20.00	Cash	Cash	North America

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.