Monday, July 8, 2019

Strong Week for the 4th

Monday, July 8, 2019 - Though it was a shortened week, the stock markets rode the heat wave right into the July 4th holiday with all major US Indices on the rise.

For the week, the Dow Jones Industrial Average rose about 322 points up 1.21% closing at 26,922. The S&P 500 gained 1.7% to 2990 and the Nasdaq Composite gained 1.9% finishing at 8161 for the week. This all on news of more dovish signal from the federal reserve and continued hope of an agreement in the trade negotiations between the US and China.

In ETFs, we saw inflows into some of the largest products on the market place. LQD, iShares iBoxx USD Investment Grade Corporate Bond ETF, gained about $4B in assets for the month of July. That was followed by SPY, the SPDRS S&P 500 ETF, which gained over $3.07B in assets. In outflows, and to somewhat of a surprise, we saw money leave IVV, iShares S&P 500 ETF, which lost over $4B in the four trading days of July. That was followed by SHY, iShares 1-3 year treasury bond ETF, which lost over $2.69B, all according to our ETFG Fund Flow Summary.

In the ETFG Quant Movers, we saw international based ETFs gain the most points to their overall scores. The Franklin FTSE Italy ETF, FLIY, and the WisdomTree Japan Multifactor ETF, JAMF, added 14.68 and 14.57 to their overall Quant scores respectively.

On the loser’s side, we saw technology-based ETFs drop points in their overall scores. The ETFMG Drone Economy Strategy, IFLY and the 3D Printing ETF PRNT lost 4.65 and 4.23 to their overall scores respectively.

There was also some great news for the ETF Industry coming at the beginning of the week. Fixed Income based ETFs now have over $1 Trillion in assets, a sign of the industries strength. Many experts believe that this growth in the fixed income space will continue upward as the products become more popular within the insurance space.

We will see if the markets can continue their hot streak throughout the summer, but it will depend on a number of factors. One of the most prevalent is seeing how the trade deal with China continues to move forward. Another is the continued rise in tensions between the US and Iran over the stricter nuclear sanctions that President Trump has imposed on the nation.

From all of us at ETF Global, we hope you had a happy and healthy 4th of July. Thanks for reading ETF Global Perspectives!

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