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!
ETFG 21 Day Free Trial: https://www.etfg.com/signup/quick
_______________________________________________________
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.
