Monday, December 14, 2020 - Major U.S. Indexes finished the week slightly down as talks for the next stimulus package, due to the coronavirus, continue to stall in Congress. This negative news was paired with positive news coming from the FDA who approved the first vaccine for the Coronavirus. The vaccine will start to be administered this week to the most at-risk populations in the U.S., keeping the markets to such limited losses. For the week, the Dow Jones Industrial Average lost roughly 47 points closing at 30,046. The S&P 500 lost 4 points to 3,663 while the Nasdaq Composite lost roughly 27 points to close at 12,377.
ETFG Fund Flow Summary - In ETFs, we saw outflows from some of the largest fixed income products. LQD, the iShares iBoxx Investment Grade Corporate Bond ETF, lost over $2.3B in assets during this week. That was followed by HYG, the iShares iBoxx High Yield Corporate Bond ETF, which shed about $1.8B in assets. In inflows, we saw investors move their assets into some of the largest equity based ETFs in the Marketplace. VTI, the Vanguard Total Market ETF, gained over $1.8B in AUM. That was followed by IVV, the iShares Core S&P 500 ETF, which gained over $1.1B 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 movements in the Health Care sector of this week’s Select List to last week's. The SPDR S&P Biotech ETF, XBI, and the iShares Nasdaq Biotechnology ETF, IBB, both held steady at the first and second spot, respectively.
Moving up two spots into the 3rd highest ranked was, BBC, the Virtus LifeSci Biotech Clinical Trials ETF. Coming in 4th was a new comer to the list, CNCR, the Loncar Cancer Immunotherapy ETF while PBE, the Invesco Dynamic Biotechnology & Genome ETF moved back two spots to round out the list at 5th place.
This week, we will pay close attention to the news coming out of Congress on the relief package as well as any further news on the Coronavirus vaccines. One other piece of interesting news for ETFs is that Tesla will be making its way into the S&P 500 this coming Friday. This can spell huge news for the stock with the massive inflows expected into some of the largest ETFs.
Thanks for reading ETF Global Perspectives and we hope you have a great week!
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