Monday, April 13, 2020

Hoping the Curve is Flattening

Monday, April 13, 2020 - Encouraging trends in coronavirus infection rates coupled with unprecedented measures of support initiated by the Federal Reserve helped propel stocks to their largest weekly gains since 1974. News that hospitalizations and fatalities in global hot spots, like New York and Italy, have begun to slow brought relief to investors and injected some momentum into the markets. This momentum was bolstered by the unveiling of a $2.3 trillion Federal Reserve lending program designed to help municipalities, small and mid-sized businesses. Additional upward momentum was provided, as the Fed further expanded its remit into unchartered territories, with its commitment to expand its emergency lending programs to allow lower-quality debt. This confluence of news was able to surmount mounting signs of economic contraction, with another surge in weekly unemployment claims and job losses.

Following this holiday-shortened week, the S&P 500, DJIA and Nasdaq were up 12.1%, 12.7%, and 10.6% respectively.

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

ETFG Quant Winners: Since much of this week's market movement was sentiment-driven, we'd like to highlight the ETFs that experienced the largest moves in the behavioral component of our Quant model.

The ETFs achieving the largest upward moves in their ETFG Behavioral Quant scores this week were the Innovator IBD ETF Leaders ETF (LDRS), iPath S&P MLP ETN (IMLP), WisdomTree Emerging Markets SmallCap Dividend Fund (DGS), Franklin FTSE Europe Hedged ETF (FLEH), and iShares MSCI EAFE Value ETF (EFV).

ETFG Quant Losers: The ETFs suffering the steepest downward moves in their ETFG Behavioral Quant scores this week were the First Trust Preferred Securities and Income ETF (FPE), Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), SPDR Solactive Germany ETF (ZDEU), Elements Spectrum ETN (EEH), and iShares Evolved U.S. Technology ETF (IETC).

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

With small caps surging this week following the Federal Reserve's massive new lending program, we'd like to show the 5 ETFs that currently sport the highest ratings according to our models. From 1-5, our current leaders in the small cap segment are the Invesco S&P SmallCap 600 Pure Value ETF (RZV), Oppenheimer S&P SmallCap 600 Revenue ETF (RWJ), iShares S&P Small-Cap 600 Value ETF (IJS), Columbia India Small Cap ETF (SCIN), and WisdomTree U.S. SmallCap Earnings Fund (EES).

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