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 3^rd 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 4^th and 5^th 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.

Thanks for reading ETF Global Perspectives!

ETFG 21 Day Free Trial: https://www.etfg.com/signup/quick

_______________________________________________________

Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.

In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision.  ETFG’s opinions and analyses do not address the suitability of any security.  ETFG does not act as a fiduciary or an investment advisor.  While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.  Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.  Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested.  Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.  Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income.