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 5th 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, 2nd and 3rd respectively. Lastly, the 4th 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!
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