The Eventful, Early Weeks of 2021

Monday, January 25, 2021 – After slipping the previous week and despite a drop last Friday, U.S. equities gained further ground as all major U.S. equity indices closed with weekly gains. U.S. equities have posted positive performance for most of this young year, fueled primarily by optimism surrounding the arrival of the Coronavirus vaccines, the political transition, the new stimulus package, and a solid start to the earnings season. For the week, the Dow Jones Industrial Average gained 187.72 points or .59% to close at 30,996.98, the S&P 500 gained 73.22 points or 1.94% to close at 3,841.47 and the NASDAQ Composite picked up 544.56 points or 4.19% to close at 13,543.06.

ETFG Fund Flow Summary - In the world of ETFs, these three products received the largest inflows during the week: iShares Core Total USD Bond Market ETF (IUSB) with $3B, iShares MSCI EAFE Value ETF (EFV) with $2.9B and the Financial Select Sector SPDR Fund (XLF) with $1.3B of net inflows. The SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV) and the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) experienced the greatest weekly outflows with $2.7B, $2.3B and $1.5B respectively.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their overall ETFG Quant ratings which is out of a scale of 1-100.

ETFG Quant Winners: In reviewing the top 3 point gainers in their respective ETFG Quant Model scores for the week, Ivy Focused Growth NextShares (IVFGC) gained 13.38 to 51.40, VanEck Vectors Generic Drugs ETF (GNRX) rose 12.50 to 38.70 and the Vanguard S&P 500 Growth ETF (VOOG) picked up 11.16 points to an overall ETFG Quant score of 41.42.

ETFG Quant Losers: On the flip side, the ETRACS NYSE Pickens Core Midstream (PYPE) dropped 13.92 points to 47.52, the JPMorgan Alerian MLP Index ETN (AMJ) fell 13.56 to 43.92 and the iShares MSCI Thailand ETF (THD) dropped 12.53 to 54.07.

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

This week, we highlight a Sector play in Energy that has been a wild ride and currently is recognized by our ETFG Quant model as the highest overall rated Sector.

The iShares Global Energy ETF (IXC) takes the top spot in this category, followed closely by the Energy Select Sector SPDR Fund (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Rounding out our top 5 in the Energy Sector within this week’s ETFG Weekly Select List are iShares MSCI Global Energy Producers ETF (FILL) and the Invesco S&P 500 Equal Weight Energy ETF (RYE).

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

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.

Stimulus Package Announced

Tuesday, January 19, 2021 – On Thursday, President-Elect Joe Biden announced a $1.9 trillion coronavirus relief and economic stimulus package. The proposed package includes increased spending on vaccine distribution as well as a $1,400 direct payment to most Americans. It is a timely proposal as unemployment claims continue to grow, reaching 965,000, an increase of 181,000 from the previous week. Overall, the market slightly dipped on the week coming down off of some record highs entering the year. Small Cap momentum continued for the third week in a row as the Russell 2000 Index posted gains once again, while Large Cap indexes fell. We will be focusing on a few Large Cap ETFs in our Weekly Select List and Fund Flow Summary.

For the week, the Dow Jones Industrial Average closed at 30,814, a slight decline of .91%. The S&P 500 finished at 3,768, falling 1.48% and the Nasdaq Composite fell to 12,999, a loss of 1.54%.

ETFG Fund Flow Summary - In ETFs, some of the biggest weekly outflows were in Large Cap products. The iShares Core S&P 500 ETF (IVV) lost $2.3B, and the Vanguard Growth ETF (VUG) shrank just over $870M in AUM. Notably, the iShares MSCI USA Min Vol Factor ETF (USMV) made the biggest weekly outflow list for the second week in a row, losing $1.4B in AUM. For inflows, the largest risers were the SPDR S&P 500 ETF (SPY), gaining over $3.5B and the iShares Core Total USD Bond Market ETF (IUSB) rising over $2.5B in AUM.

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

This week we will highlight some substantial movement in the Large Cap portion of the Select List.

The Principal Contrarian Value Index ETF (PVAL) claimed the number one spot this week moving all the way up from the 5^th position. The Forensic Accounting Long-Short ETF (FLAG) and the Principal Sustainable Momentum Index ETF (PMOM) both climbed onto the list from being previously unranked, 2^nd and 3^rd respectively. Lastly, the 4^th position belongs to the WBI BullBear Quality 1000 ETF (WBIL) for the second consecutive week, while the Invesco Russell Top 200 Pure Growth (IVZ) rounded out the top five.

A shortened but eventful week, with the observance of Martin Luther King Jr.'s birthday, will include the Inauguration of the Biden Administration on Wednesday.

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

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.

Chaotic But Strong Start To New Year

Monday, January 11, 2021 - A resilient market marched on as unfortunate political and socioeconomic events, that we are becoming all too familiar with, captured the weekly news cycle. Chaos at the Capitol and a negative December U.S. jobs report (-140,000) for the first time since April, were the main focal points of the week. As dire as that sounds, it serves as a good reminder of short term market drivers and the importance of a long term view.

For the week, the Dow Jones Industrial Average closed at 31,098, a modest gain of 1.6%. The S&P 500 finished at 3,825, rising 1.8% and the Nasdaq Composite rose to 13,202, a solid climb of 2.4%.

With Democrats securing the Senate majority after a tightly contested Georgia runoff, a second U.S. stimulus package now seems imminent. A combination of larger U.S. relief checks, further global vaccine distribution and low interest rates could be key ingredients in keeping an already strong 2021 market thriving.

ETFG Fund Flow Summary - In ETFs, some of the biggest weekly outflows were in large equity-based products. The SPDR S&P 500 ETF (SPY) lost $3B in AUM, the iShares MSCI USA Min Vol Factor ETF (USMV) lost just under $400M in AUM and the iShares Core S&P 500 ETF (IVV) lost over $350M in AUM. For inflows, the largest risers were the Financial Select Sector SPDR Fund (XLF), with an increase of just over $2.3B in AUM, and the iShares Russell 2000 ETF (IWM) which rose $1.75B in AUM.

ETFG Weekly Select List: The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model. This week we will highlight some substantial movement in the Financials portion of the Select List.

Moving up three spots to claim the number one position is the SPDR S&P Insurance ETF (KIE). In the runner-up spot is the Invesco KBW Regional Banking ETF(KBWR), also moving up three notches. The SPDR S&P Regional Banking ETF (KRE), First Trust Financial AlphaDex Fund (FXO), and First Trust NASDAQ ABA Community Bank Index Fund (QABA) rounded out the top 5 respectively, all climbing into the rankings after previously being unlisted.

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

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.

Record Highs and 2021

Monday, January 4, 2021 - After a year like no other, we wish all our readers, clients and partners great health, happiness, and prosperity in 2021!  Last year was filled with sadness, loss and tragedy resulting from the COVID-19 pandemic. While the beginning of 2021 may closely resemble 2020, this new year brings an opportunity to refresh.

To recap the markets for 2020, the Dow climbed 7.3%, while the S&P rose 16.3% and for the Nasdaq, it was best year since 2009 with a 43.6% gain. All three major equity indexes ended higher last Thursday, the final trading day of the year. The DJIA closed up 197 points or 0.7% and the broader S&P 500 rose 0.6%. The Nasdaq climbed 0.1%, falling just short of its Monday record.

As we look forward into 2021, the U.S. economy remains challenged with millions of unemployed and a daunting business environment. That said, there are also glimmers of hope such as Thursday’s U.S. data showing first-time jobless weekly claims unexpectedly declining by 19,000 to 787,000 after being forecast at 835,000. The new, stimulus bill signed Sunday coupled with the expectation of additional government support should help in getting the economy back on track.

The world of ETFs were one of the few bright spots in 2020, experiencing substantial growth on several fronts. The ETF Ecosystem welcomed an eclectic group of new ETF Issuers along with a series of new product strategies and structures.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: In the abbreviated last trading week of 2020, the top 5 ETFs with the largest percentage gains in their respective ETFG Quant Model Total Score were Vanguard Mega Cap Growth ETF, Vanguard S&P 500 Growth ETF, Oppenheimer Russell 1000 Quality Factor ETF, ProShares S&P 500 Ex-Energy ETF and Invesco FTSE International Low Beta Equal Weight ETF with gains of 40.68%, 22.05%, 20.94%, 20.74% and 19.40% respectively.

ETFG Quant Losers: Last week the top 5 ETFs with the largest percentage drop in their ETFG Quant Total Score were Cambria Core Equity ETF, First Trust Dorsey Wright Peoples Portfolio ETF, iPath S&P MLP ETN, CSOP MSCI China A International Hedged ETF and ProShares Decline of the Retail Store ETF with drops in their Quant Total Score of -42.30%, -34.05%, -33.37%, -26.78% and -26.52% respectively.

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

In continuing to enhance the actionable strategies that our users can lever from our ETFG Quant Model, this week we highlight the most favored Categories within our ETFG Weekly Select List.

By Sector – The Top 5 Energy ETFs lead all other sectors with an average score of 77.78 followed by the Top 5 Financial ETFs with an average ETFG Quant Score of 69.76. By Geography – For the week, the Top 5 ETFs by Geographic Region were the North American Region with an average score of 77.18 and the Global Category with an average score of 71.10. By Strategy – The Weekly Select List most favored two strategies that scored closely in the last week of the year:  The Small Cap Category with an average of 66.34 for its Top 5 ETFs and the Broad Equity category with an average score of 65.76.

Happy New Year and thanks 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.