Tuesday, January 19, 2021

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 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!

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.