Monday, January 4, 2021

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!

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