Monday, June 22, 2020

Spikes and Gains...

Monday, June 22, 2020 - Though numbers of coronavirus cases continued to rise last week, the US marketplace showed its resilience with all major indices finishing in the green.  For the week, the Dow Jones Industrial Average gained roughly 200 points closing at 25,807. The S&P 500 rose 50 points to 3,097.54 while the Nasdaq Composite rose roughly 400 points to 9,942.63. It will be interesting to see if the money that the Fed is pumping into the market will continue to help hold strong as economic uncertainty continues to grow with coronavirus cases now topping 9M worldwide.

ETFG Fund Flow Summary - in ETFs, we saw outflows from some of the largest fixed income ETFs. JNK, the SPDR Bloomberg Barclays High Yield Bond ETF, lost over $750M in assets during this week. That was followed by SPIB, the SPDR Portfolio Intermediate Term Corporate Bond ETF, which shed about $325M in assets. In inflows, we saw investors move their assets to some of the largest Vanguard Funds in the market. VOO, the Vanguard S&P 500 ETF, gained over $6.3B in AUM. That was followed by VTI, the Vanguard Total Stock Market ETF, which gained over $2.5B in assets.

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

Because of this strategy’s success, we’d like to highlight some substantial movement in the Financials portion of this week’s Select List to last. The Invesco KBW Regional Banking ETF, KBWR, held steady at the top spot on the list. Following that was BIZD, the VanEck Vectors BDC Income ETF, which jumped up two spots this week. A new comer this week, XLF, the Financial Select Sector SPDR fund, finished in the 3rd overall position. Rounding out the list this week was KIE, the SPDR S&P Insurance ETF and KBWD, the Invesco KBW High Dividend Yield Financial ETF, which finished 4th and 5th on the list respectively.

This is a very big week for the ETF Industry. The Russell Rebalance will be taking place on Friday and many believe that it will be one of the biggest market events of the year. We will be sure to watch the rebalance and days leading up to it closely. To check out some more on what our research team is anticipating, check out a recent piece published by them here: ETFG Research on Upcoming Russell Rebalance.

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