Monday, December 21, 2020

A Second Vaccine

Monday, December 21, 2020 - On the news of approval for Moderna’s coronavirus vaccine, major U.S. Indexes finished the week in the green. The U.S. is planning on pairing this roll out with the already approved Pfizer vaccine which not only investors, but the world, is hoping will be the beginning of the end for this pandemic.

For the week, the Dow Jones Industrial Average finished up .4% points closing at 30,179. The S&P 500 rose 1.3% to 3,663 while the Nasdaq Composite was the big winner for the week closing up 3.1% to 12,756.

ETFG Fund Flow SummaryIn ETFs, we saw outflows from some factor-based products. DGRW, the WisdomTree U.S. Quality Dividend Growth Fund, lost over $737M in assets during this week. That was followed by QUAL, the iShares MSCI USA Quality Factor ETF, which shed about $424M in assets. In inflows, we saw investors move their assets into some of the largest equity index-based ETFs in the marketplace. VXF, the Vanguard Extended Market Index Fund ETF, gained over $4.9B in AUM. That was followed by SPY, the State Street SPDR S&P 500 ETF, which gained over $3.2B in assets.

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

Because of this strategy’s success, we highlight some substantial movement in the Industrials portion of this week’s Select List to last. The iShares U.S. Industrials ETF, IYJ, took over the 1st overall spot moving the iShares U.S. Aerospace & Defense ETF, ITA, down to the second overall spot. Holding steady in 3rd, 4th and 5th were the same ETFs that were in those positions last week. JETS, the U.S. Global Jets ETF held steady in 3rd while FLM, First Trust Global Engineering and Construction ETF and AIRR, the First Trust RBA American Industrial Renaissance ETF held steady at 4th and 5th.

This week, we will pay close attention to the news from Congress that the Senate has approved the next round of stimulus to help the American people battered from the Coronavirus. We will continue to learn more about the bill throughout the week but expect investors and the markets to greet the news with optimism.

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

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