Monday, May 13, 2019

Trading Bumps

Monday, May 13, 2019 - Trade fears hampered sentiment throughout the week as the U.S. raised tariffs to 25% on $200 billion in imports from China. In turn, China vowed to retaliate indicating an escalation in rhetoric and raising the odds of a breakdown in trade negotiations. Volatility, as measured by the Cboe Volatility Index (VIX), spiked to its highest level since January signaling an increase of uncertainty among investors.

Nevertheless, a Friday afternoon rally shielded the major indexes from their worst declines since late December. The technology-heavy Nasdaq Composite Index performed worst dipping more than 3% for the week. The Russell 2000 TR Index stood out for being the only major benchmark to temporarily move into correction territory, down over 10% from its all-time highs approximately a year ago.

Looking at the various sectors in the S&P 500, information technology shares performed worst, dragged lower in part by a decline in Apple (AAPL). Industrials and Materials were also weak as investors worried about rising trade barriers. The typically defensive Consumer Staples sector held best. The trading week was also notable for Friday’s initial public offering (IPO) of Uber (UBER), which valued the ride-sharing company at around $75 billion. The amount raised by the offering, totaling approximately $8.1 billion, made it one of the 10 largest IPOs in history and the biggest since Chinese Internet giant Alibaba’s IPO debut in 2014.

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

ETFG Quant Winners: The top five gainers in Quant Total Score in order were Principal International Multi-Factor Index ETF (PXUS), iShares U.S. Basic Materials ETF (IYM), Vanguard Dividend Appreciation ETF (VIG), ETRACS Alerian MLP Index ETN Series B (AMUB) and Cushing 30 MLP Index ETNs (PPLN). Evident behavioral factors were the primary drivers for the increased growth (over 10%) in each fund’s Total Quant Score.

ETFG Quant Losers: Honorable mentions in the loser category were Barclays Return on Disability ETN (RODI), Vanguard US Multifactor ETF (VFMF), Reality Shares DIVCON Dividend Guard ETF (GARD), IQ 50 Percent Hedged FTSE Japan ETF (HFXJ) and Global X MSCI China Consumer Discretionary ETF (CHIQ). The reasons for the ETFG Quant score drop were driven by behavioral and global factors.

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

We saw an interesting phenomena in the Strategy portion when comparing this week’s Select List to last week’s Select List – there was complete turnover in the Theme category. Pacer Military Times Best Employers ETF (VETS) snagged first place, proving that ESG factors, particularly in the S and G category, can perform well for investors in all market cycles. Global X Conscious Companies ETF (KRMA) claimed second followed by Legg Mason Global Infrastructure ETF (INFR), iShares MSCI USA ESG Select ETF (SUSA) and ARK Genomic Revolution Multi-Sector ETF (ARKG) in order from 3rd to 5th.

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.