New Highs via Tech

Tuesday, September 4, 2018 – Stocks recorded solid gains last week, helping bring most of the major indexes to all-time highs. The technology-heavy Nasdaq Composite Index performed best and crossed the symbolic 8,000 threshold for the first time, while the Dow Jones Composite Index lagged and remained roughly 2.5% off the highs it established earlier in the year. Technology stocks also outperformed within the S&P 500 and growth shares built on their substantial lead over value stocks for the year to date. This equity performance is supported by strong corporate and economic fundamentals. On the corporate side, we’ve seen two consecutive quarters of earnings growth greater than 20%, compared with last year. Even the retail sector, once considered to be weakened by competitive pressures, showed renewed strength as major retailers like Walmart and Target reported strong quarterly earnings.

In other trade news, there were reports that the Trump administration is considering taking further steps to implement new tariffs on $200B of Chinese goods. This action, if it occurs, is likely to be met with a reciprocal response by the Chinese government and is another step in the escalation of trade tensions between the two countries. Trade and policy uncertainties are a headline risk, but the fundamental foundation of economic expansion and rising corporate profits are still very much intact and can help extend the bull market.

In ETF news, Technology ETFs as well as Healthcare and Consumer Discretionary ETFs had the most return over the month of August. According to the ETFG Heat Map Tech ETFs had an average return of 6.70%, Healthcare 4.96%, and Consumer Discretionary 4.04%.

ETFG Quant Movers – those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings: 

ETFG Quant Winners: Vanguard Dividend Appreciation ETF (VIG) rose 7.83 points to 50.83, Vanguard Mid-Cap Value ETF (VOE) was up 6.87 points ending the week at 45.27, SPDR EURO STOXX 50 ETF (FEZ) climbed 6.26 points to 61.43. Rounding out the Top Five gainers were Vanguard Mega Cap ETF (MGC) up 6.11 points to 43.86 and VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) closing up 6.01 points at 49.92.

ETFG Quant Losers: On the heels of new developments in the U.S. China trade war, the biggest loser of the week was Global X China Consumer ETF (CHIQ) dropping nine points to 36.37. Cambria Foreign Shareholder Yield ETF (FYLD) dropped seven points to 48.28, iShares Edge MSCI Min Vol Europe ETF (EUMV) fell 6.68 points to 47.82 while iShares Russell 3000 ETF (IWV) and iShares Edge MSCI Min Vol EAFE ETF (EFAV) both fell 6.54 points to 45.55 and 45.25 respectively.

ETFG Weekly Select List - the 5 most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model. Because of the sector’s success in the major indexes this week, we’d like to highlight some substantial movement in the Technology Sector portion when comparing this week’s Select List to last. First Trust Nasdaq Semiconductor ETF (FTXL) and Global X FinTech ETF (FINX) remained in the top two spots from last week while three newcomers rocketed up the select list: BlueStar Israel Technology ETF (ITEQ), 3D Printing ETF (PRNT), SPDR NYSE Technology ETF (XNTK). As technology stocks continue their hot streak keep an eye on the ETFG Weekly Select list to see what ETFs are riding the bull markets alongside them.

Thanks 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.