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.
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