Monday, August 3, 2020

Tech Leads the Way

Monday, August 3, 2020 – All three major indexes closed out July with a fourth straight month of gains, powered by the ever-growing influence of technology companies. Despite sharpening scrutiny over their size and influence, tech titans Apple, Facebook, Google and Amazon delivered another quarter of consensus-beating sales and profits. Their results and subsequent share price rises came after facing heavy criticism from Congress over their business practices and market dominance, once again affirming the resiliency of their operations and advantageous positioning as the pandemic-era accelerates our reliance on digital services.

Despite tech's stalwart performance, the economic picture remains decidedly mixed. Although the indexes finished with gains, this week's performance was choppy as the Fed issued another dour outlook, the U.S. experienced a record quarterly economic contraction, unemployment claims increased, coronavirus cases rose, non-tech earnings were gloomy and Congress failed to strike a follow-up coronavirus stimulus package before jobless benefits expired on Friday.

Facing this uneven economic backdrop, the DJIA, S&P 500 and Nasdaq ended the week down 0.2% and up 1.7% and 3.7% respectively. The key underpinnings of the market - monetary policy, corporate earnings and economic activity remain largely supportive for further market gains. Yet these gains are extremely tenuous and political uncertainties and the unabating coronavirus will render volatile market conditions for the foreseeable future.

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

With the technology sector continuing to provide resiliency and market leadership, we'd like to feature their top-rated ETFs according to our Quant model. As of Friday, our highest rated technology ETFs are the ALPS Disruptive Technologies ETF (DTEC), First Trust Nasdaq Smartphone Index Fund (FONE), ETFMG Drone Economy Strategy ETF (IFLY), SPDR S&P Technology Hardware ETF (XTH) and Invesco S&P Equal Weight Technology ETF (RYT).

Thanks for reading ETF Global Perspectives!

ETFG 21 Day Free Trial:


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.