Monday, October 2,
2017 - The start of the new quarter brings some new hopes to Investors and
continued strength throughout the US markets. It also brought along some big
news in the ETF industry as Invesco PowerShares announced that they agreed to
buy Guggenheim’s ETF business for $1.2B. Guggenheim’s ETFs have about $33B in
AUM which will certainly add a lot of value to the fourth largest US ETF
issuer.
All three major indices are up for the quarter and got a
nice boost with the announcement of the new tax plan that the Republican party
is trying to put in place.
One of the most favorable parts of the new proposed tax
plan is the corporate tax cut from 35% to 20%. That can add multiples to the
P/E ratios of many of the large-cap stocks and have an even greater impact on
the small and mid-cap ones which tend to pay a higher rate.
Though still early in the process, it did not stop
investors from pouring money into small-cap names and some ETFs were there to
ride the wave – one of the most notable was the Russell 2000 ETF, IWM, which added 3.57 points
or 2.46% this week. The iShares
Russell 1000 Growth ETF, IWF also had a positive week adding 1.74 points.
Taking a look back at the quarter, there were 7 ETFs that
added over $1B to their AUM. To no surprise, four of the seven, IVV, IEFA, LQD
and HYG are iShares funds, two of the seven, XLF and SPY, are from StateStreet
and the last, VEA is from Vanguard. Check out the chart below to see the flows.
Ticker
|
3Q Net Fund Flow
|
% of AUM
|
AUM
|
$3.82B
|
3.12%
|
$126.29B
|
|
$2.92B
|
9.22%
|
$34.56B
|
|
$1.57B
|
4.23%
|
$38.58B
|
|
$1.37B
|
2.25%
|
$61.99B
|
|
$1.25B
|
7.30%
|
$18.33B
|
|
$1.24B
|
4.95%
|
$26.19B
|
|
$1.02B
|
.41%
|
$249.39B
|
In our weekly Quant Movers, names like the iPath S&P MLP ETN (IMLP),
WisdomTree Dynamic Currency
Hedged Japan Equity Fund (DDJP) and WBI SMID Tactical Value Shares
(WBIB) made the largest gains to their scoring adding 12.03, 11.27 and
10.07 points respectively. On the opposite end of the scoring spectrum, the
“dogs” of the week included the ALPS International Sector
Dividend Dogs ETF (IDOG), PowerShares
Cleantech Portfolio (PZD) and PowerShares India Portfolio
(PIN), which lost 12.03, 10.09 and 10.04 points to their overall score
respectively.
Also, since it is the beginning of the quarter, be sure
to look out for the rebalance and reconstitution of the ETFG Model Portfolios.
To learn more about them, check out: http://www.etfg.com/about-model-portfolios.
Thanks for reading the ETF Global Perspectives!
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