Monday, June 15, 2020

Two Steps Forward, One Step Backward...

Monday, June 15, 2020 - The US markets continued to seesaw this week as fears of new coronavirus cases in the United States jittered investors. Several States reported upticks in new cases and hospitalizations showing the country is not out of the woods yet with this virus.

For the week, the Dow Jones Industrial Average dropped 1,721 points closing at 25,605.54. The S&P 500 fell 167 points to 3040.31 while the Nasdaq Composite fell 248 points to 9,588.81. The sell-off this week mostly took place on Thursday, the worst day for the market since March, when the news was confirmed about the new cases and hospitalizations.

ETFG Fund Flow Summary - In ETFs, we saw outflows from some of the large geographic-focused ETFs. BBEU, the JPMorgan BetaBuilders Europe ETF, lost over $1.4B in assets during this week. That was followed by BBJP, the JPMorgan BetaBuilders Japan ETF, which shed about $1B in assets. In inflows, we saw investors move their assets to Sector based ETFs. XLF, the Financial Select Sector SPDR ETF, saw some of the greatest inflows for the week, gaining over $3.5B in AUM. That was followed by XLV, the Health Care Select Sector SPDR ETF, which gained over $2.25B 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 highlight some substantial movement in the Health Care portion of this week’s Select List to last. The SPDR S&P Biotech ETF, XBI, held steady at the top spot on the list. Following that was FHLC, the Fidelity MSCI Health Care Index ETF and JHMH, the John Hancock Multifactor Healthcare ETF, which moved up one spot from last week. Rounding out the list this week was BBH, VanEck Vectors Biotech ETF and PPH, VanEck Vectors Pharmaceutical ETF, which finished 4th and 5th on the list respectively.

We will continue to pay close attention to the new data coming out this week on new coronavirus cases. Though many government leaders were urging not to panic over the numbers, the thought of diving fully back into stay-at-home orders will be enough to keep volatility churning in the marketplace.

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