Monday, September 14, 2020 - US Indexes continued to decline during this shortened holiday week as investors continued to shy away from large technology stocks which had made historic runs earlier this year. For the week, the Dow Jones Industrial Average lost 830 points closing at 27,665. The S&P 500 lost 120 points to 3,340 while the Nasdaq Composite lost roughly 530 points to close at 10,853.
In ETFs, we saw outflows from some of the large index-based ETFs. IWM, the iShares Russell 2000 ET, lost over $524M in assets during this week. That was followed by IVV, the iShares Core S&P 500 ETF which shed about $350M in assets. In inflows, we saw investors move their assets into some of the largest fixed income ETFs in the Marketplace. SHV, the iShares Short Treasury Bond ETF, gained over $1B in AUM. That was followed by BNDX, the Vanguard Total International Bond ETF, which gained over $863M in assets. This all according to our ETFG Fund Flow Summary.
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 Technology portion of this week’s Select List. The First Trust Cloud Computing ETF, SKYY, jumped up one spot from second to hold the number one spot this week. Moving from fourth to second place this week was, DTEC, the ALPS Disruptive Technologies ETF. Holding strong at 3rd place was CIBR, the First Trust Nasdaq Cybersecurity ETF. Rounding out the list this week were two new comers. OGIG, the OShares Global Internet Giants ETF and PRNT, the 3D Printing ETF, finished 4th and 5th on the list respectively.
This week, we will pay close attention to some of the big tech IPOs hitting the marketplace and see if they can help fuel investors spirits. This paired with some good news on the coronavirus vaccine front, where AstraZeneca was allowed to restart their stage 3 trial after news of a potential side effect, may get the week off on the right foot. As mentioned last week, there is a large rebalance coming at the end of this week that we will be monitoring. This has the potential to create some big moves in the ETF industry as some of the largest ETFs will be taking part.
Thanks for reading ETF Global Perspectives and we hope you have a great week!
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