Wednesday January 3, 2018 – Happy New Year from all of us here at ETF Global! Looking back, 2017 marks another monumental year for Exchange-Traded-Funds with giant leaps in both the number of products and asset flows. ETFs gained $476 billion in net inflows, bringing U.S. ETF assets under management to $3.4 trillion and more than 2,000 products.
Stock markets rose steadily around the globe this year, with international stocks even outperforming U.S. stocks for the first time in almost a decade. The Dow Jones Industrial Average rose more than 5,000 points, its largest ever point gain in a calendar year. All other major U.S. indexes recorded solid gains, with large-cap stocks generally performing better than smaller-caps. Additionally, it was also the ninth straight year of positive total returns for the S&P 500. Improving global economic growth and rising corporate earnings are the food that feeds the bull market but we expect its pace to slow from a trot to a walk.
As expected from the shortened and quiet holiday week, markets saw little change in the final week of 2017. In regards to the overall developments within the ETF landscape, we would like to highlight some interesting developments. As we all know Blackrock leads in ETFs, but Vanguard is coming in hot with the firm’s long history in traditional index funds and actively managed low-cost options. Vanguard has taken well over $350 billion in total assets through December beating out most other issuers by extraordinary figures. The most popular fund this year in terms of inflows, the iShares Core S&P 500 ETF, is one of the most plain vanilla funds on the market, offering exposure to the primary U.S. equity-market benchmark yet it amassed some $30.2 billion in assets.
Our proprietary research also pointed to some interesting trends: internationally and commodity focused ETFs turn up the heat within the ETF Global Quant Movers, a surprise considering the recent passing of the largest tax reform in several decades. Honorable mentions include iShares Core MSCI Emerging Markets ETF, iShares MSCI Poland Capped ETF, and PowerShares FTSE International Low Beta Equal Weight Portfolio all seeing gains a little more than 10 points within the Quant Total Score. Losers include specialty focused US ETFs such as First Trust Nasdaq Semiconductor ETF and SPDR MSCI ACWI Low Carbon Target ETF. The top-rated ETFs within ETFG Quant are IBB and FNI both saw approximately a 25% gain over this past year and have been consistently rated as the top funds.
Thank you for reading ETFG 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.