Thanksgiving Gains

Monday, November 30, 2020 - It was a short but productive week for the markets. One bit of news that helped stocks surge was President-elect Biden’s plan to name former Federal Reserve chair Janet Yellen the head of the Treasury Department. Yellen, head of the Federal Reserve from 2014-2018, has a proven track record of economic expansion and is being welcomed warmly by investors. Another big piece of news to drop this week was the third vaccine, this one from AstraZeneca, showing promise from trials (70% effective on average). While not as highly effective as its constituents in Pfizer or Moderna, 70% efficacy is still very promising, and investors acted accordingly, as what appears to be another crucial step in the right direction of ending the Coronavirus pandemic.

Overall on the week,  the Dow Jones gained 2.21% this week (646.89 points), the S&P 500 gained 2.27% on the week, and the Nasdaq rose 2.96% this week, and they closed at 29,910.37, 3638.35, and 12,205.85 respectively.

ETFG Quant Movers: Those ETFs with the largest weekly change in their respective ETFG Quant Fundamental Score ratings.

ETFG Quant Winners: This week, our top 5% Gainers were IVW, IJT, VETS, HAP, VBK, which showed percentage gains of 56.19%, 54.69%, 54.45%, 45.24%, 42.35% respectively. What’s worth noting here is that that top 2 movers, IWV and IJT, are ETFs that track US equities, and seeing what strong of a week the US major indices had this week, it would make sense to see these two ETFs here.

ETFG Quant Losers: On the % Losers side, our 5 biggest losers this week were PGF, EWL, IHE, MOM, and SLX. These 5 ETFs showed % losses of -39.68%, -34.03%, -30.31%, -27.89%, and -26.72% respectively. What’s interesting to note here is that, the two top ETFs here, PGF, and EWL, are ETFs that have heavy interesting in foreign securities, and seeing that the US markets outperformed the rest of the world this week, we can see why ETFs that track foreign securities wouldn’t perform as well.

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 take a look at the Sector category, and compare last week’s placements to this week’s. A couple of ETFs worth highlighting are PEJ (Invesco Dynamic Leisure and Entertainment ETF) which moved from 3^rd place to 1^st place this week in the Consumer Discretionary sub-focus, and KBWD (Invesco KBW High Dividend Yield Financial ETF) which went from unranked last week to 1^st place this week in the Financials sub-focus.

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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.

Holiday COVID Spike

Monday, November 23, 2020 - Sharply rising numbers of COVID-19 cases, hospitalizations, and deaths led to some near-term pessimism on Wall Street, tempering the long-term optimism spurred by positive developments on vaccines. The S&P 500 ended the week down 0.8%, while the Dow dropped 0.7%. The tech-heavy Nasdaq ended the week slightly up, posting a 0.2% gain.

After posting eye-popping gains in earlier stages of the pandemic, tech stocks have taken a tumble in recent weeks, as studies of vaccines from Pfizer and Moderna Inc. showed positive results. When approved and mass produced, these vaccines could allow for normal life to resume at some point in 2021, boosting much of the economy, but also reducing the need for the pandemic technology solutions that have driven some stocks to unprecedented highs this year.

This week threw some cold water on that long-term COVID-19 optimism, as signs emerged that the months before vaccines are widely available could be rough. As the U.S. passed the grim milestone of 250,000 deaths from the virus, rising outbreaks were being reported in many U.S. states and throughout the world. The New York City public school system, the nation’s largest, announced a return to remote learning, and the number of jobless claims rose for the first time in 5 weeks.

ETFG Quant Movers: Those ETFs with the largest weekly change in their respective ETFG Quant Fundamental Score ratings.

ETFG Quant Winners: This week, we focus on notable movement in the ETFG Quant Behavioral Scores. The biggest increase was charted by the First Trust Health Care AlphaDEX Fund (FXH), followed by the VanEck Vectors Steel Index Fund (SLX), the Schwab Emerging Markets Equity ETF (SCHE), the SPDR Portfolio Emerging Markets ETF (SPEM), and the Columbia Sustainable International Equity Income ETF (ESGN).

ETFG Quant Losers: The ETFs with the biggest decreases in their ETFG Quant Behavioral Scores for this week are the iShares US Regional Banks ETF (IAT), the Invesco KBW Bank ETF (KBWB), the iShares International Select Dividend ETF (IDV), the iShares Core Dividend Growth ETF (DGRO) and the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC).

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

As Europe contends with its own COVID-19 resurgence, an EU recovery package has been blocked by Hungary and Poland. Negotiations continue over that 1.8 trillion Euro package, as well as post-Brexit trade agreements.

In this rapidly changing environment, our Select List has identified several opportunities in Europe-focused ETFs. Topping the list this week is the SPDR STOXX Europe 50 ETF (FEU). Two dividend funds take the next spots. They are the First Trust Stoxx European Select Dividend Index Fund (FDD) and the WisdomTree Europe SmallCap Dividend Fund (DFE).

Closing out the list are the iShares MSCI Turkey ETF (TUR) and the iShares MSCI Austria ETF (EWO).

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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.

Vaccine = Optimism

Tuesday, November 17, 2020 - Promising studies of COVID-19 vaccines have led to a surge of optimism on Wall Street, driving both the Dow Jones Industrial Average and the S&P 500 to all-time highs.

Investors were buoyed last week by Pfizer and BioNTech’s announcement that their COVID vaccine recorded 90% effectiveness in a large study. On Monday, a preliminary analysis of Moderna Inc.’s vaccine found it 95 percent effective in a clinical trial.

While the health care sector is responsible for the rally, the benefits are being shared across broad swaths of the market, with companies that would benefit most from a full economic reopening, including airlines and cruise lines, standing out as the biggest winners. Meanwhile, Zoom Video Communications Inc. saw declines, along with other technology companies that have charted big gains during the pandemic.

ETFG Quant Movers: Those ETFs who have had the largest weekly change in their respective ETFG Quant Fundamental Score ratings.

ETFG Quant Winners: We’re seeing some big changes in the Quant Fundamental Scores of ETFs. Topping the list is the Large Cap Growth Index-Linked ETN (FRLG), Principal Spectrum Preferred Securities Active ETF (PREF), BMO Elkhorn DWA MPL Select Index ETN (BMLP), AGFiQ US Market Neutral Momentum Fund (MOM), and AGFiQ US Market Neutral Anti-Beta Fund (BTAL).

ETFG Quant Losers: The ETFs with the biggest declines in their Quant Fundamental Scores are Oppenheimer S&P Ultra Dividend Revenue ETF (RDIV), Proshares Equities for Rising Rates ETF (EQRR), ETRACS Alerian MLP Infrastructure Index ETN (MLPI), Global X MLP ETF (MLPA), and Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC).

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

With its work to address COVID-19 driving the markets to all-time highs, this week we will focus on the Health Care Sector. Topping that sector for the week in our ETFG Quant Model’s analysis is the SPDR S&P Biotech ETF (XBI).

The next three spots on the list are all ETFs specifically focused on pharmaceuticals. They include: VanEck Vectors Pharmaceutical ETF (PPH), Invesco Dynamic Pharmaceuticals ETF (PJP), and First Trust Nasdaq Pharmaceuticals ETF (FXTH). Rounding out this week’s top 5 in the Health Care sector is The Organics ETF (ORG).

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_______________________________________________________

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.

Election Turmoil

Monday, November 9, 2020 – Stocks continued their ascent this past week, as the cloud of uncertainty over the 2020 elections slowly began to clear with Joe Biden appearing to emerge as the victor. Amongst unprecedented election turmoil, the prospect of a divided government appears to have brought some comfort to investors, with this scenario lowering the likelihood of increased regulatory burdens, an overhaul of the tax code, and other major policy changes. Additionally, with Friday's job report showing 638,000 jobs were added in October and that unemployment fell to 6.9%, the economy reaffirmed that it is trending in the right direction.

With these events bringing some relief to markets, stocks posted their best weekly performance since April, when they were just beginning their recovery from the pandemic-induced trough. For the week, the DJIA, S&P 500, and Nasdaq rose 7.3%, 6.9%, and 9.0% respectively.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: From 1-5, the ETFs posting the largest RTFG Quant score gains this week were the Dorsey Wright Micro-Cap ETF (DWMC), ETFMG Alternative Harvest ETF (MJ), WBI BullBear Yield 1000 ETF (WBIG), WBI BullBear Value 1000 ETF (WBIF), and First Trust RiverFront Dynamic Asia Pacific ETF (RFAP).

ETFG Quant Losers: Conversely, the ETFs that experienced the largest declines in their ETFG Quant scores this week were the iShares S&P 500 Growth ETF (IVW), WisdomTree China ex-State Owned Enterprises Fund (CXSE), Cambria Core Equity ETF (CCOR), First Trust Dorsey Wright Focus 5 ETF (FV), and ERShares Entrepreneur 30 Fund (ENTR).

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

With markets now largely pricing in a Biden presidency, our weekly Select List reveals some interesting candidates of beneficiaries under this scenario. A look at our top-rated thematic ETFs captures some of the segments of the economy whose prospects would be boosted under a Biden presidency.

Currently, our highest scoring thematic ETFs are SPDR Kensho Clean Power ETF (XKCP), iShares U.S. Infrastructure ETF (IFRA), Barclays Women in Leadership ETN (WIL), iShares Emerging Markets Infrastructure ETF (EMIF), Robo-Stox Global Robotics & Automation Index ETF (ROBO). The themes in this list - environmental protection/renewable energy, diversity & inclusion, and infrastructure/increased government spending - capture the shift in policies priorities from our (likely) previous administration to our incoming one.

Use our weekly Select List to monitor how market-moving events, like the election, may change the outlook for different sectors, geographies, and strategies/themes and their corresponding ETFs.

Thank you for reading ETF Global Perspectives!

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_______________________________________________________

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.

An Upcoming Week Like No Other

Monday, November 2, 2020 – Leading into the week of the presidential election, stocks suffered their worst work and month since the onset of the coronavirus pandemic in March. Investors have been unnerved by election uncertainty, surging global coronavirus cases, the imposition of new lockdowns in Europe and fear of similar measures in the U.S., and mixed earnings and rising regulatory pressure against large technology companies. These anxieties overrode any positive impact from the steadily improving economic data over the past few months, highlighted by robust third quarter GDP growth.

For the week, the DJIA, S&P 500, and NASDAQ declined 6.1%, 5.6%, and 5.5% respectively. This marked the second consecutive month of declines for the three major indexes, with each experiencing a loss greater than 2% for October.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: The top five gainers in their ETFG Quant Total Score were the iPath S&P MLP ETN (IMLP), Innovator IBD ETF Leaders ETF (LDRS), Franklin FTSE Europe Hedged ETF (FLEH), Global X MSCI Superdividend Emerging Markets ETF (SDEM), and AdvisorShares Vice ETF (ACT).

ETFG Quant Losers: The ETFs suffering the largest declines in their ETFG Quant Total Score were the Elements Spectrum ETN (EEH), First Trust Preferred Securities and Income ETF (FPE), Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), iShares MSCI Finland ETF (EFNL), and SPDR Solactive Germany ETF (ZDEU).

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

With technology companies once again in focus this week, we feature the top-rated ETFs within this sector from our Quant model.

From 1-5, our model currently favors ALPS Disruptive Technologies ETF Technology (DTEC),  First Trust Nasdaq Smartphone Index Fund Technology (FONE), Loup Frontier Tech ETF Technology (LOUP), O'Shares Global Internet Giants ETF Technology  (OGIG), and First Trust Cloud Computing ETF Technology (SKYY). DTEC and FONE maintained their positions from last week, however there was a shakeup in the 3-5 spots. LOUP replaced IPAY at 3, OGIG supplanted XWEB at 4, and SKYY unseated XTH at 5.

Thank you for reading ETF Global Perspectives!

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_______________________________________________________

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.