Monday, September 14, 2020

Less Tech Appetite

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!

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.