Tuesday, May 26, 2020

Phase 1

Tuesday, May 26, 2020 - All three major indexes gained at least 3% this week, in part driven by optimism that coronavirus vaccines will be available later this year. Additionally, all 50 states have relaxed some of their coronavirus restrictions, stirring hopes about an economic rebound as municipalities start to reopen. The S&P 500 and Dow added 3.2% and 3.3%, respectively, for the week, while the Nasdaq climbed 3.4%.

ETFG Equity Exposure Report - For the first quarter, Nvidia posted adjusted EPS of $1.80, which beat expectations comfortably and reflected earnings growth of 105%. Revenue grew 38.7% year-over-year, landing at $3.08 billion, also ahead of consensus. Looking inside the numbers, Gaming revenue grew 27% to $1.34 billion, while the Data Center simply exploded in the pandemic impacted environment, up 80% to $1.14 billion. Moving toward the smaller business segments, Professional Visualization increased 15% to $307 million, and some of the same forces that propelled demand for Data Center services negatively impacted demand for the Automotive space. That line contracted 7% to $155 million. The ETFs weighted most heavily with Nvidia Corp. (NVDA) stock are the Global X Funds Global X Robotics & Artificial Intelligence ETF (BOTZ), the ProShares Ultra Semiconductors (USD), the VanEck Vectors Video Gaming and eSports ETF (ESPO) and the VanEck Vectors Semiconductor ETF (SMH).

ETFG Quant Movers - This week, something different, as we are highlighting the ETFs that saw the largest movement in our ETFG Quant Fundamental Score.

ETFG Quant Winners: The ETFs with the biggest percentage increase in their ETFG Quant Fundamental Score this week were the Global X SuperIncome Preferred ETF (SPFF), the First Trust NASDAQ Technology Dividend Index Fund (TDIV), the iPath S&P MLP ETN (IMLP), the iShares MSCI World ETF (URTH), and the Invesco WilderHill Clean Energy ETF (PBW).

ETFG Quant Losers: The ETFs with the biggest percentage decrease in their ETFG Quant Fundamental Score this week were the VanEck Vectors Gaming ETF (BJK), the CSIM Schwab U.S. Small-Cap ETF (SCHA), the Invesco Preferred ETF (PGX), the First Trust Canada AlphaDEX Fund (FCAN) and the Vanguard Small Cap ETF (VB).

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

This week we will look at the ETFs focusing on Broad Equity exposure. The 5 ETFs with the highest Broad Equity ratings from our ETFG Quant model include: the First Trust Canada AlphaDEX Fund (FCAN), the Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ), the iShares MSCI South Africa ETF (EZA), the First Trust United Kingdom AlphaDEX Fund (FKU) and the First Trust Multi Cap Value AlphaDEX Fund (FAB).

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