Monday, August 26, 2019

Trading on Flows

Monday, August 26, 2019 – Equity markets were on track to finish higher for the week until China unveiled a new round of retaliatory tariffs and President Trump vowed to respond, upsetting markets. This marked the fourth consecutive weekly loss as a late-week escalation in the U.S.-China trade dispute undermined optimism over retail sales and Federal Reserve policy. In this new episode of escalation in trade tensions, China announced that it will impose tariffs on $75 billion U.S. goods. At the annual central bank summit in Jackson Hole, Fed Chair Powell left the door open for another rate cut when the committee meets next month, acknowledging the risks to global and U.S. growth from trade uncertainty. While the Fed and trade disputes dominate the headlines, it should not be lost that economic and corporate data remain fairly positive.

Positive earnings and revenue reports from Target (TGT), Lowe’s (LOW), and Home Depot (HD) helped consumer discretionary shares outperform the broader market. In ETF related news, Fixed income ETFs continued to gather assets this week. Schwab U.S. TIPS ETF (SCHP) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) topped the flow charts each gaining over $500 million in AUM. Also benefiting from the economic fears and low yields was the SPDR Gold Trust (GLD).

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 US Equity Dividend Select ETF (RNDV), Global X MSCI Pakistan ETF (PAK), Vanguard FTSE Europe ETF (VGK), Barclays Return on Disability ETN (RODI) and SPDR S&P Kensho Future Security ETF (FITE).

ETFG Quant Losers: Honorable mentions in the loser category were ProShares Russell 2000 Dividend Growers ETF (SMDV), iShares MSCI Chile ETF (ECH), WisdomTree Japan Multifactor Fund (JAMF), First Trust Energy AlphaDEX Fund (FXN) and Main Sector Rotation ETF (SECT). The reasons for the drop-in quant score for these funds is obvious as behavioral scores and global factors came into play.

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

Considering the sector’s success, we’d like to highlight some substantial movement in the Consumer Discretionary portion when comparing this week’s Select List to last. Invesco Dynamic Retail ETF (PMR) held onto the 1st place position while SPDR S&P Retail ETF (XRT) jumped from 4th to 2nd place. ProShares Decline of the Retail Store ETF (EMTY) claimed 3rd followed by Columbia Emerging Markets Consumer ETF (ECON) and SPDR S&P Homebuilders ETF (XHB) respectively.

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.