Monday, October 12, 2020

Early October Optimism

Monday, October 12, 2020 - U.S. Stocks rose Friday for the fifth consecutive day, with major benchmarks having their best week since the summer months. A second round of COVID stimulus talks helped fuel the markets rise. Talks stalled early in the week with President Trump seemingly walking away from the negotiating table, however a phone conversation between U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi sparked optimism.

The Dow Jones Industrial Average closed at 28,586.90, a gain of 3.3% on the week. The S&P 500 finished at 3,477.13, rising 3.8% and the Nasdaq Composite climbed to 11,579.94, a gain of 4.6% for the week.

ETFG Fund Flow Summary - In inflows, we saw a reversal of last week with investors moving their assets into some of the most popular index-based ETFs. IWM, the iShares Russell 2000 ETF gained over $2.5B in AUM. That was followed by SPY, the SPDR S&P 500 ETF gaining over $1.8B in assets on the week.

The biggest weekly outflows were iShares products. EFA, the iShares MSCI EAFE ETF lost over $730M in assets during the week. EFA is an International Multi-Cap Core ETF. The second biggest outflow of the week was just under $700M in assets from NEAR, the iShares Short Maturity Bond ETF.

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

This week, we highlight some substantial movement in the Financials portion of the Select List. With another U.S. stimulus package on the horizon, it would be wise to keep a finger on the pulse of Index and Financial based ETFs.

Moving up two spots to claim the number one position this week is IAT, the iShares US Regional Banks ETF. Runner-up goes to Invesco KBW High Dividend Yield Financial ETF, KBWD, coming all the way up from the number five spot.

SPDR S&P Insurance ETF, KIE, fell one spot coming in third this week. Invesco KBW Regional Banking ETF, KBWR, and Financial Select Sector SPDR Fund, XLF, rounded out the top five, respectively.

Thanks for reading ETF Global Perspectives and we hope you have a great week!

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