Tuesday, November 17, 2020

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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