Back to Work....for 3 Weeks?

Monday, January 28, 2019 - After alternating between gains and losses, stocks ended the holiday-shortened week on a positive note driven by a stopgap deal to end the government shutdown for three weeks. To begin the week, waning global growth was the prevailing market concern and weighed on market sentiment. Downward revisions to the ECB's economic outlook and IMF's 2019 and 2020 global growth forecasts underscored this unease and helped put a halt to the largely strong stock performance since the beginning of the year. However, the rest of the week was devoid of any negative developments in some of the recent market overhangs, like adverse economic data releases, the U.S.-China trade dispute, or Brexit. The absence of any negative news help swing the balance of investor sentiment towards more positive developments, like strong Q4 earnings and a long-awaited end to the government shutdown. While stocks failed to post a fifth consecutive week of gains, they erased much of their initial losses and concluded the week with some momentum. At week's end, the S&P 500 was down 0.2%, while the DJIA and NASDAQ inched up 0.1% each.

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

ETFG Quant Winners: This week’s largest advance occurred in the ARK Web x.0 ETF (ARKW), gaining 9 points to end with a Quant score of 61.26. This is unsurprising, as technology was the best performing sector this week following a string of positive earnings releases and forward looking guidance. VanEck Vectors Semiconductor ETF (SMH) was another standout tech performer, rising 8.74 points. Other notable movers were several emerging market funds, like iShares Currency Hedged MSCI Emerging Markets (HEEM), iShares MSCI Thailand ETF (THD), and NuShares ESG Emerging Markets Equity ETF (NUEM).

ETFG Quant Losers: On the opposite side of the ledger, VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) experienced the largest quant loss, with a 8.02 point decline, perhaps reflecting the damaging ongoing trade tensions are inflicting on metals companies. The top 5 was rounded out by Invesco S&P 500 Equal Weight Energy ETF (RYE), John Hancock Multifactor Consumer Staples ETF (JHMS), Schwab US Broad Market ETF (SCHB), and iShares Global Telecom ETF (IXB).

ETFG Weekly Select List - the five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

In the upcoming week, investors will get a fresh look at the health of several technology giants, after Facebook, Apple, and Amazon report quarterly results. Given the outsize collective influence of these companies, their results will serve as a key barometer of the overall global economic growth picture.

Accordingly, we'd like to bring attention to the technology sector ETFs that currently boast the highest rankings according to our model. The First Trust Nasdaq Semiconductor ETF (FTXL) carries the top overall ranking, followed by iShares Exponential Technologies ETF (XT), SPDR FactSet Innovative Technology ETF (XITK), Global X FinTech Thematic ETF (FINX), and ALPS Disruptive Technologies ETF (DTEC). Due sizable exposures many of these ETFS have to the FAANG stocks, it will be interesting to monitor how the funds are impact by the results of this week's earnings reports.

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.

Strong Earnings for Financials

Tuesday, January 22, 2019 - Stocks recorded their fourth consecutive week of positive returns and built on their strong start to 2019. The gains pulled the Large-Cap benchmarks out of correction territory, or within 10% of their recent highs, but the Nasdaq Composite Index and the smaller-cap benchmarks remained below that threshold. Within the S&P 500 Index, Financials led the gains, helped by better-than-expected earnings reports from some large banks. The focus shifted to corporate earnings, with several high-profile banks reporting quarterly earnings. Altogether, earnings were better than expected, and more importantly, commentary from management teams about the outlook was positive. As a result, the Financial Services sector outperformed the broader market, finishing 6% higher. Trading volumes were somewhat muted, especially early in the week and volatility, as measured by the Cboe Volatility Index (VIX), continued its recent downward trend. The S&P 500 has now quickly recovered more than half of its losses since September's peak and finished the week up 74.45 points, the DJIA was up 710.40 points and the NASDAQ Composite rose 185.75 points.

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

ETFG Quant Winners: This week’s biggest winner was Principal Price Setters Index ETF (PSET) gaining 8.86 points to end with a Quant score of 58.26 Principal Active Global Dividend Income ETF (GDVD) gained 8.51 points moving its score to 60.34. O'Shares FTSE Russell Small Cap Quality Dividend ETF (OUSM) posted a solid gain for the week, up 8.28 points to 52.70. Rounding out the top five were iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and iShares Russell Mid-Cap Growth ETF (IWP) gaining 8.21 and 8.12 points respectively.

ETFG Quant Losers: This week’s biggest loser was ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB) dropping 8.89 points to a Quant score of 43.92. Gabelli Media Mogul NextShares (MOGLC) was down 8.78 to 42.26, iShares U.S. Oil Equipment & Services ETF (IEZ) fell 8.05 to 52.20. Rounding out the bottom five were Ivy Focused Value NextShares (IVFVC) and SPDR S&P Health Care Services ETF (XHS) down 7.33 and 7.12 points respectively.

ETFG Weekly Select List - the five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Because of the sector’s success on the 1W Quant Rating of the  ETFG Heat Map, we’d like to highlight some substantial movement in the Financials Sector when comparing this week’s Select List to last. SPDR S&P Insurance ETF (KIE) remained in the top spot from last week to this week while VanEck Vectors BDC Income ETF (BIZD) made the biggest jump from fifth last week to the number two spot this week. Both iShares MSCI Europe Financials ETF (EUFN) and iShares Global Financials ETF (IXG) remained in their third and fourth spots from last week’s Select list, showcasing consistent popularity in the funds in the new year. Finally, SPDR S&P Regional Banking ETF (KRE) broke onto the list in the fifth spot after not being ranked last week. Overall, through both investments and strong earnings reporting from the major players in the sector, these Financials ETFs have been a hot ticket to start 2019.

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.

Long Term vs. Short Term

Monday, January 14, 2019 - Stocks finished higher for the third straight week, with Small-Cap and International markets outperforming. For the week, the DJIA was up 562.79 points, the S&P 500 rose 64.32 points, while the NASDAQ Composite gained 232.62 points.

The market gains helped make the Russell 2000 Index the last major benchmark to emerge from bear market territory. Within the S&P 500 Index, Industrial shares performed best, helped by strength in railroads and a sharp rise in Boeing. Energy shares were also especially strong for much of the week as oil prices rallied, although they gave back a portion of their gains on Friday. Financials lagged and Health Care stocks also underperformed despite the news of another large merger in the sector—Eli Lilly’s proposed $8 billion acquisition of Loxo Oncology. Volatility continued to moderate, with the Cboe Volatility Index (VIX) hitting its lowest level in over a month, while higher-valued growth stocks outperformed slower-growing value shares.

Stocks have staged a healthy rally in the past two weeks, rewarding investors that stayed calm in the face of December's panic. This highlights the importance of a longer-term perspective, as some of the market's best days often come on the heels of its worst. For example, the late-December sell-off included the worst two-day decline (-4.8%) since 2015, which was followed the very next day by the best daily gain (+5.0%) since March 2009. We have now experienced four corrections (declines of 10% or more) in the past four years, directly in line with the average since 1900 of one correction per year.

It's a reminder that despite the uncomfortable nature of market pullbacks, volatility is in fact a normal part of investing. Being a long-term investor does not require you to ignore shifts in the market, but it does require perspective and discipline. In General, stocks are now up 10.4% from their December lows, having recouped more than 40% of the total decline. Looking at the 10%-plus pullbacks since 2010, the market regained the entire drop in an average of 90 days. This is no guarantee that recent losses will be erased in such short order, but the rally over the past few weeks is a reminder that the decline in December may not be a one-way path toward a severe bear market.

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

ETFG Quant Winners: Invesco S&P International Developed Momentum ETF (IDMO) took the number one spot up 14.95 points and a score of 54.38. iShares Edge MSCI Intl Size Factor ETF (ISZE) gained 13.78 points to end with a Quant score of 55.16. Invesco S&P 500 Minimum Variance ETF (SPMV) posted a solid gain in score moving up 13.65 points to a score of 55.93. Rounding out the Top Five were Oppenheimer Russell 1000 Quality Factor ETF (OQAL) and Dorsey Wright MLP Index ETN (BMLP) which rose 13.58 and 13.17 points respectively.

ETFG Quant Losers: This week’s biggest loser was Invesco S&P International Developed Low Volatility ETF (IDLV) dropping 10.68 points to a 50.56 Quant score. VictoryShares US EQ Income Enhanced Volatility ETF (CDC) fell 9.67 points to 40.01. VanEck Vectors Gaming ETF (BJK) declined 9.54 points to 41.21. iShares MSCI Italy ETF (EWI) moved down 9.49 points to 53.01. Ending out the bottom five is Invesco BLDRS Developed Markets 100 ADR Index Fund (ADRD) down 9.44 points to 45.97.

ETFG Weekly Select List - the five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Because of the sectors success on the 1W Quant Rating of the ETFG Heat Map, we’d like to highlight some substantial movement in the Technology Sector when comparing this week’s Select List to last. SPDR FactSet Innovative Technology ETF (XITK) takes the number one spot as a newcomer, unranked last week. Dropping one spot down to second was last week’s top pick First Trust Nasdaq Semiconductor ETF (FTXL). Global X FinTech Thematic ETF (FINX), ALPS Disruptive Technologies ETF (DTEC) and iShares North American Tech-Multimedia Networking ETF (IGN) round out this week’s Technology Sector Select List. Keep an eye on our Weekly Select List for crucial insights as investors continue to turn to ETPs for portfolio diversification and security in these volatile markets.

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.

1Q 2019 Rebalance – ETF Global® Dynamic Model Portfolios

Tuesday, January 8, 2019 - We joked in our last ETFG Model Portfolio quarterly rebalance commentary that “investors who heeded that sage advice to sell in May and go away were once again disappointed.” Equities continued to push higher and that early chill, that we talked about as equities closed out weak in late September, turned into a full-blown epidemic. The long-awaited correction finally sent domestic indexes briefly into bear market territory. The tech stocks that had long dominated the market weren’t the only ones to feel the pain as Cyclicals, Industrials and even long-depressed Energy stocks felt the sting as investors turned to Treasuries and Gold. Return on capital is out, return OF capital is in!

That tech pain and the weak Christmas recovery, that helped pull the markets out of bear market territory, explain why the ETFG Dynamic Model Portfolios favor larger names with more of a growth or at least balanced orientation in the most recent reallocation that was completed on January 2^nd.  All 4 of the Base Portfolios and the 8 “tilts” were updated with the domestic sleeve of the portfolio seeing a major shakeup as the two dedicated value funds, the SPDR S&P 400 Mid Cap Value ETF (MDYV) and the SPDR S&P 600 Small Cap Value ETF (SLYV), were replaced by the iShares Russell Midcap ETF (IWR) and the SPDR Portfolio S&P 500 Growth ETF. Those two additions, along with the retention of the Direxion NASDAQ 100 Equal Weighted Fund (QQQE) and the SPDR S&P 600 Small Cap ETF (SLY) gives the domestic allocation a large core feel by reducing the allocation to Financials while simultaneously raising the average market capitalization of the portfolio substantially.

Another factor that made the fourth quarter so challenging was that there was nowhere to turn. Equity volatility spread abroad with most international ETFs suffering just as badly as domestic funds over the last three months to close out the year down substantially. While there were opportunities in the third quarter for investors willing to do their homework and buy funds for specific nations, the broad equity sell-off led many to seek shelter in fixed income, leaving the international fund space a sea of red.

The turnover in our international basket reflects that with two of the four funds leaving the international allocation for the first quarter. The international sleeve retains its decidedly European flavor thanks to the retention of the SPDR STOXX Europe 50 ETF (FEU) along with the introduction of the WisdomTree Europe Hedged Equity Fund (HEDJ), while the iShares MSCI Italy ETF (EWI) is replaced by another troubled member of the EU (for now), the iShares MSCI United Kingdom Fund (EWU.)  For all the “Sturm und Drang” over the failure of the May government to deliver an acceptable Brexit deal, raising the risk the UK might endure a painful sendoff, EWU has performed in-line with the broader EU markets. EWU also retained a substantially higher fundamental score as investors remain wary of going long in such a troubled situation.  Could even a modest improvement in the sentiment surrounding Brexit lead to big gains for EWU?

One place where investors seem to be finding confidence is in Latin America. Our emerging markets allocation saw a noticeable change as the iShares Latin America 40 (ILF) was replaced by the iShares Mexico ETF (EWW). Investors were well served by ILF as the fund strongly outperformed not just broader EM funds but domestic stocks as well, thanks in large part to a strong showing by its Brazilian holdings. Yet, ILF’s Quant score has dropped as Brazilian stocks have become more overpriced. Fundamentals are only one factor as Mexican stocks have begun to outperform thanks in part to investors reevaluating President Obrador’s business stance, giving EWW the opportunity to catch-up to its peers.

You can find an overview and performance information for the ETF Global Dynamic Model Portfolios at http://www.etfg.com/about-model-portfolios To learn more about our ETFG Model Portfolio strategy, please email us at sales@etfg.com or call us at (212) 223-ETFG (3834).

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.

Thank You Boom Boom Powell

Monday, January 7, 2019 - We would like to start the New Year by saluting a new entrant into the world of Google search, “Boom Boom Powell.”  A search of the term brings up a number of sports celebrities, WWI and WWII pilot and Navy Veterans and now Jerome Powell, the honorable Fed Chairman, thanks to the folks at Morning Brew who popularized the term.  JP earned his new nickname from comments he made on Friday relieving investors’ fear that he would pull the “Greenspan Plug” to backstop the equity markets in a severe decline. This resulted in a strong one-day rally with the Dow surging some 3.3% and other major indexes sharing similar upward moves.

The first week of 2019 was another roller coaster ride for investors. The markets played a tug of war but US Equity Markets managed to end the week in positive territory.  The Large Cap weighted S&P 500 closed at 2,531.94 and the broader NASDAQ Composite closed at 6,738.86 for a weekly jump of 1.86% and 2.34 %.

Helping to move the major indexes on Boom Boom’s comments was an unexpectedly strong jobs report despite a rise in unemployment claims and the announcement of renewed trade discussions with China. Investor sentiment remains cautious as concerns ranging from the economic fallout from an ongoing government shutdown, increased questioning of corporate earnings quality, confidence in the current administration, stability in the oil markets, credit concerns and Brexit which appears to be headed for a hard landing. Investors seem to have given pause that a global slowdown could be avoided.

We think investors sentiment has markedly shifted and will remain cautious for good reason. First, Lu Wang at Bloomberg wrote yesterday in her insightful article titled “Dip Buyers Beware the S&P 500 Bottoming Process Can Take Time” that bear markets typically last some 8 months but can be characterized by strong violent rallies as stocks struggle to regain their footing. We agree with her. The numbers are the numbers.

As our friends at Barron’s pointed out in an interview with Stephanie Pomboy, founder of MarcoMavens, the bull market has largely been supported by stock buybacks and a small number of tech stocks driving the indexes. She points out that since 2011, the S&P 500 EPS has risen by 67% while aggregate US corporate profits only rose by 23%, according to the US Bureau of Economic Analysis.  Is there a “bubble” in buyback-inflated earnings? What happens if there is a slowdown and firms pull-back on the stock repurchase plans? We also noted an interesting article by a Richard Phillips in the well-respected beltway publication, The Globalist, https://www.theglobalist.com/us-stock-market-federal-reserve-economy/ who asks if the increased volatility is symbolic of deteriorating confidence in US Institutions?

We expect market volatility to continue for some time as the investors calculate the impact of new trade regimes, fallout from the ongoing govt shutdown and general political instability worldwide. This creates opportunities for traders and active investors who can use ETFs to take advantage of real-time market volatility – both up and down!

ETFG Weekly Select List - To best support the ETF selection process, The ETFG Weekly Select List highlights the 5 most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.  We highlight a couple of ETFs that attracted our attention.

Long term investors should look at OIH in the Energy Sector which continued to share our top rating as does NFRA in Natural Resources and FUTY in Utilities. For the more adventurous investor/trader, IYZ in Telecoms jumped from 4 to 1.  For those seeking plays in emerging markets, EMIF and TUR for a Turkish play and EZA for the Middle East & Africa continue to hold our highest ratings.

Today’s market realities require a new approach to macro investing, one in which individual investors now have access to tools via ETPs to customize risk and return profiles in their portfolios. We suggest keeping a mindful eye on tools like our Select List, Scanner, ETFG Quant Scores and Risk and Reward Ratings that can be used to evaluate the vast set of opportunities in the ETF marketplace.

Thank you 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.

ETF Global® wins 2018 Most Innovative ETF Research & Analysis Platform!

Friday, January 4, 2019 - In U.K. based Wealth & International Magazine’s 4^th Annual Investment Fund Awards, ETF Global was announced as the winner of the 2018 Most Innovative ETF Research & Analysis Platform.

About the Award - From Pensions to ETFs, Managers to Service Providers and everyone in between, the Fund Awards seek to showcase the very best of the best from around the world and across the burgeoning global investment fund landscape. The overriding aim of this award program is to acknowledge and reward those who work to provide their customers with the very highest standards of service and support in the funds market.

After a months-long review process, ETF Global was selected from a multitude of candidates as 2018’s Most Innovative ETF Research & Analysis Platform.

To advance from nominee to winner, candidates must be able to demonstrate expertise in a given area, dedication to client fulfillment, noteworthy performance or commitment to innovation. Ultimately, to ensure that one’s recognition is truly deserved, all award winners are chosen through a combination of votes gathered from W&I’s network of respected industry partners and their own rigorous in-house research and due diligence.

Promisingly, this award coincides with our official expansion into the European market, as we recently opened our European headquarters in London. Europe is already home to a robust and fast-growing ETF marketplace, with nearly $750 billion in AUM. This market will offer ETFG many exciting opportunities to reach a broader global audience and extend its best-in-class data, research, analytics and solutions to a geographic region that will only continue to grow in importance in the world of ETFs.

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.