Monday, December 11, 2017 - As December rolled in, it seemed as though investors were pulling their yearly gains out of the market in order to purchase some holiday gifts but that quickly changed course as we finished the week up yet again in US markets. The S&P 500 and Dow Jones Industrial Average both finished the week off at record highs closing at 2,651.50 and 24,329.16 respectively. The Nasdaq finished slightly down at 6,840.08 closing down just .1% for the week.
Even bitcoin experienced some holiday cheer as it climbed up above 17,000 last week before moving down and then back up again in what has seemingly been the only volatile asset for people to invest in this year. As of Sunday morning, it was sitting at roughly $15,300 and is looking like it may be getting closer and closer to being investable in the form of an ETF as futures are starting to launch on the asset class this week.
In ETFs, the gains continue to roll on but in the form of inflows. Globally, ETPs have witnessed over $600B worth of inflows this year which continue to blow past any records set in previous years. In the US, which controls roughly 3/4 of the AUM globally and was responsible for $424b worth of $600b, we saw over $30b has flowed into equity ETPs since just November 29th.
An interesting fact about the inflows in the US is that Charles Schwab has more products with flows of over $1b than State Street YTD showing that the low fee structure put into place by the discount broker may be paying off.
In our ETFG Quant Movers, which ranks all US listed equity products, the Powershares India Portfolio (PIN) saw the biggest gain in its overall score followed but VanEck Vectors Steel Index Fund (SLX) and the SPDR S&P Capital Markets ETF (KCE). They had gains to their score of 8.10, 8.04 and 7.76 to their overall scores respectively.
On the loser’s side of the Quant model, we saw scores go down in growth ETFs. WBI SMID Tactical Growth Shares (WBIA) and iShares S&P 500 Growth ETF (IVW) saw the greatest declines in their scores losing 9.16 and 7.63 to their rewards respectively.
We will see how the markets and ETPs continue to perform before the year end but it seems as though they both have nothing in their way to continue their rise upwards. A tax plan looks as though it will continue to make progress throughout the house and senate, and same goes for deciding on next year’s budget as they have agreed to extended the deadline until December 22nd to come up with the numbers. On top of that, the economy added over 220,000 jobs in November which kept the unemployment rate at 4.1%.
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.
Post a Comment
Note: Only a member of this blog may post a comment.