Monday, June 8, 2020

Despite Unrest

Monday, June 8, 2020 - In yet another defying week for the stock market (aided by a very generous jobs report on Friday), the US economy is suggesting a reopening way ahead of schedule. Early in the week, we saw investor optimism on an economic reopen, with the Coronavirus seemingly being put in the rearview mirror. On Friday, this rally was amplified by a stunning jobs report, which showed the US was able to add 2.5 million jobs in the month of May. This is a key indicator for bullish investors that believe a full US economic reopening could be within a couple of months. The Dow Jones is edging closer and closer to its February 2020 all-time high of 29,551.42, as it closed this week at 27,110.98 (a far cry from its March 23rd low of 18,591.93).

For the week, the Dow Jones was up 6.81%, the S&P 500 up 4.91%, and the Nasdaq Composite up 3.42%. Despite tumultuous times on so many fronts, investors appear still in belief that the economic downturn of 2020 will be remembered as a short one, with a sharp, and equally fast recovery.

ETFG Quant Movers - We highlight those ETFs with the largest movement in our ETFG Quant Score.

ETFG Quant Winners:  this week’s top % Gainers were IMLP, LDRS, FLEH, SPFF, and CIZ, with % gains of 41.42%, 38.65%, 24.26%, 21.31%, and 20.98% respectively. This is the second week in a row that LDRS showed up on our % Gainers, and second week in a row it was our #2 gainer. This reflects the strong couple of weeks that the US has seen in its economy.

ETFG Quant Losers:  those products with the largest reductions in their respective ETFG Quant scores were FPE, XLG, FNDE, EEH, and FSZ, with respective drops of -26.66%, -25.91%, -25.66%, -25.47%, and -22.80%. Interesting to note is two of these ETFs, XLG and EEH, are related to the S&P 500 index, which, despite its positive performance as of late, could suggest that a correction of some sort could happen in the near future.

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 highlight the ‘Geography’ category, pointing out the biggest movers from the previous week to this week.

·       FAUS (First Trust Australia AlphaDEX Fund) moved from 3rd place to 1st this week in the ‘Asia-Pacific’ Region and ‘Broad Equity’ Focus.
·       EIRL (iShares MSCI Ireland ETF) moved from 4th place to 1st place this week in the ‘Europe’ Region and ‘Broad Equity’ Focus.
·       AMLP (Alerian MLP ETF), which was previously unranked, moved to the 1st place spot this week within the ‘North American’ Region and ‘Energy’ Focus.

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