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

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