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).
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.
