Monday, December 10, 2018

Weekly Whipsaw?

Monday, December 10, 2018 - It was a tough week for the US markets as trade war issues continued to weigh down on stocks. The week capped off with all 3 major US indices down substantial percentages. For the week, the Dow Jones Industrial Average gave up almost all the ground it gained last week losing over 1,100 points or 4.5% to 24,388.  The S&P 500 fell 4.6% to 2,633 and The Nasdaq Composite lost 4.9% to 6,969.

In ETFs, even with the downward pressure on major indices, the world’s largest fund saw inflows in the first 5 trading days of December. SPY, took in more than 2.7B while iShares Emerging Markets ETF IEMG, also saw net flows taking in over $2.5B. In outflows, we saw fixed income ETFs losing some ground. iShares iBoxx Investment Grade Corporate Bond ETF (LQD), iShares iBoxx High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg Barclays High Yield Bond ETF (JNK) saw net outflows of $1.59B, $1.14B and $1.04B respectively.

In the ETFG Quant Movers, we saw sector based ETPs gain the most percentage points to their overall scores. The iShares U.S. Oil Equipment & Services ETF (IEZ) and ProShares S&P Ex-Technology ETF (SPXT) added 9.82% and 7.99% to their overall Quant scores respectively.

In the loser’s column, we saw small cap ETPs dropping some percentage points to their overall score. The SPDR Portfolio Small Cap ETF (SPSM) and the IQ Chaikin U.S. Small Cap ETF (FFSG) lost 12.39% and 9.42% to their overall scores 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 Basic Materials portion when comparing this week’s Select List to last. The iShares MSCI Global Silver Miners ETF (SLVP) jumped up one spot to the first overall position to be the top ranked fund in the sector. It took over for the Global X Silver Miners ETF (SIL) which got knocked out of the top 5 this week by the iShares MSCI Global Gold Miners ETF (RING) which is now in the 2nd ranked spot. The SPDR S&P Metals & Mining ETF (XME) jumped up one spot to the 3rd overall position. Rounding out the bottom of the top 5 were two VanEck funds, GDX and GDXJ which are their gold miners and junior gold miners ETF. They finished 4th and 5th respectively.

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