Monday, October 1, 2018

Tesla Thrill Ride

Monday, October 1, 2018 – U.S. stocks finished Friday little changed, securing big gains for the third quarter. The S&P 500 kept near its flat line throughout the session, closing just a tick below its unchanged mark. The Nasdaq and the Dow added 0.1% apiece. For the quarter, the S&P 500 added 7.2%, the Dow added 9.0%, and the Nasdaq added 7.1%. Financial shares fell once again on Friday (-1.1%), extending the heavily-weighted financial sector's weekly loss to 4.1%. On the flip side, the lightly-weighted real estate (+1.3%) and utilities (+1.5%) sectors rallied, closing atop the sector standings. Conversely, the newly-added communications services sector was the top performer with a weekly gain of 1.1%.

The headlines weighed on Tesla as well, when TSLA tumbled 13.9% after its CEO, Elon Musk, was sued by the SEC over his tweet about taking the electric automaker private. Mr. Musk and the SEC were reportedly close to reaching a no-guilt settlement that would have barred him from being chairman for two years, but Mr. Musk backed out at the last minute. Investors should expect an ETF Sell off and can examine these movements by utilizing ETFG’s Equity Exposure Summary. Three of five top ETFs which own Tesla include ARK Industrial Innovation ETF (ARKQ), ARK Innovation ETF (ARKK) and ARK Web x.0 ETF (ARKW) all down approximately 1% have a weighting of 11.06%, 9.91% and 7.91% respectively.

ETFG Quant Movers - Regular readers know that we rank U.S listed, equity ETFs based on several forward-looking indicators which offers a powerful tool for investors who are either seeking confirmation of a move or as a contrarian indicator for future trends. EM equity funds in our ETFG Behavioral Top Scorers list favored more broad market with the Schwab Emerging Markets Equity ETF (SCHE) coming in at #23 while the granddaddy of all EM funds, iShares MSCI Emerging Markets Index Fund (EEM), was at #63. Nor was the strong showing confined to just broad-based funds with iShares MSCI Brazil ETF (EWZ) at #14 and multiple China funds making the cut with iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI) both appeared in the top 25.

ETFG Weekly Select List – This weekly report features the 5 most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

After tepid movements on Wall Street we saw an astonishing amount of consistency within the ETFG Weekly select List. SPDR S&P 600 Small Cap Value ETF (SLYV), iShares Nasdaq Biotechnology Index Fund (IBB), AdvisorShares Dorsey Wright ADR ETF (AADR), iShares MSCI EAFE Value Index Fund (EFV), Fidelity MSCI Telecommunication Services Index ETF (FCOM) and SPDR KBW Insurance ETF (KIE) all maintained the top rating in their respective categories. Those categories in order are Small Cap, North America, Global Ex-U.S., Developed Markets, Telecommunication and Financials.

For full coverage of this week’s ETFG Weekly Select, please see here: ETFG Select List - October 1, 2018

Thanks for reading ETF Global Perspectives!

ETFG 21 Day Free Trial:

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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.