Monday, February 1, 2021 – It is hard to imagine that many stories in the weeks leading up to Super Bowl LV between the Kansas City Chiefs and the Tampa Bay Buccaneers could steal the headlines so demonstratively but then came the GameStop stock battle – more on this later in the post.
Despite closing at new, record highs on Monday, domestic equity indices experienced a pullback last week. While much market attention was paid to GameStop, many of the same market forces persisted such as our continuing battle against the Coronavirus and politically, a bipartisan group of Senators resisting and countering the most recently proposed $1.9 trillion coronavirus relief package. Additionally, the Federal Reserve released a statement midweek that the speed of economic activity and employment had fallen off in recent months. For the week, the DJIA fell off -1,014.36 to 29,982.62, the S&P 500 lost -127.23 to 3,714.24 and the NASDAQ closed down -472.37 to 13,070.69.
Any focus on constituents held within ETFs would not be doing justice without some focus on last week’s wild ride in GameStop stock. There are so many tangential storylines here that include additional target stocks such as AMC and Blackberry as well as other firms now embroiled in this insane war like Reddit, Robinhood, TD Ameritrade and WeBull. In a nutshell, a large online chat community that emanated from a Reddit stock trading forum took the other side of the massive bets made against GameStop stock and inevitably spiked the stock high enough to squeeze the short sellers. There are also all kinds of investor profile stories here creating the drama of a war between established Wall Street investors and internet traders. In the world of ETFs, two funds to watch closely, with large allocations to GameStop, include the Wedbush ETFMG Video Game Tech ETF (GAMR) and the previously much larger SPDR S&P Retail ETF (XRT) which experienced massive outflows during last week. From all we can tell, there should be plenty more to watch on this saga in the coming trading days.
ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.
ETFG Quant Winners: The Global X MSCI Portugal ETF (PGAL) rose 12.17 points to a Total ETFG Quant score of 53.84, the VictoryShares Developed Enhanced Volatility Wtd ETF (CIZ) gained 11.39 points to 50.38 and the JPMorgan US Momentum Factor ETF (JMOM) picked up 11.29 points to increase its Total ETFG Quant Score to 49.82.
ETFG Quant Losers: On the other side of these movements, the three largest drops in their respective Total ETFG Quant Scores were found in the WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS) which lost 16.65 points to 34.89, the WisdomTree U.S. MidCap Dividend Fund (DON) which dropped 15.46 points to 29.92 and the SPDR S&P Pharmaceuticals ETF (XPH) which fell 10.32 points to wrap up the week at 39.52.
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.