Monday, October 14, 2019

Happy Columbus Day

Monday, October 14, 2019 – Happy Columbus Day to all and it was a strong week for the major US Indices as talks of a trade deal between the United States and China seemed to take a turn for the better.

For the week, the Dow Jones Industrial Average gained 243 points, or 0.9% closing at 26,816. The S&P 500 gained about 0.6% to 2970 and the Nasdaq Composite also finished up, gaining 0.9% to close the week at 8,057. The news that helped was an act of good faith between the two most powerful nations in the world. China agreed to buy more goods from the United States and the US decided it would not enact any further tariffs, as originally stated.

In ETFs, we saw inflows into some of the largest products on the market place. SPY, the SPDRS S&P 500 ETF, gained over $1.5B in assets for the week. That was followed by IWM, the iShares Russell 2000 ETF, which gained over $830M in assets. In outflows, we saw investors pull money out of sector-based ETFs. IYR, iShares US Real Estate ETF, lost over $266M in the last week. That was followed by JXI, the iShares Global Utilities ETF, which lost over $177M, or about half of its net assets, all according to our ETFG Fund Flow Summary.

In the ETFG Quant Movers, we an assortment of products ass the most percent to their overall scores. The VictoryShares US Discovery Enhanced Volatility WTD ETF, CSF, gained the most percent to its overall score with a roughly 35% increase. That was followed by the Fidelity International Value Factor ETF, FIVA, and the First Trust Switzerland AlphaDEX Fund, FSZ, which added 23.67% and 23.25% to their overall Quant scores respectively.

On the loser’s side, we saw market cap focused ETFs drop their overall scores. This was led by the iShares Micro-Cap ETF, IWC, which lost 18.60% to its overall score. That was followed by the Vanguard S&P Mid-Cap 400 Growth ETF, IVOG and the Vanguard Small-Cap Growth ETF, VBK, which lost 15.47% and 13.91% to their overall scores respectively.

Because of this sector’s success, we’d like to highlight some substantial movement in the Consumer Discretionary portion of this week’s Select List to last week’s. The SPDR S&P Retail ETF, XRT, and the ProShares Decline of the Retail Store ETF, EMTY, held strong in the first and second positions respectively. They were followed by the VanEck Vectors Gaming ETF, BJK, which knocked the iShares Evolved U.S. Media and Entertainment ETF, IEME totally out of the top 5. IBUY, the Amplify Online Retail ETF and the First Trust Consumer Discretionary AlphaDEX Fund, FXD, were added to the 4th and 5th positions of the list. They knocked out the Invesco Dynamic Retail ETF, PMR and the SPDR S&P Homebuilders ETF, XHB.

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