Monday, March 22, 2021

Spring Arrives with a Backup in Rates

Monday, March 22, 2021 – U.S. equity markets felt the pressure of the continuing rise in rates, a mix of economic news and plans for the first major federal tax increase in almost thirty years. For the week, the DJIA shaved 150.67 points to close at 32,627.97, the S&P 500, after closing at an all-time high on Wednesday, lost 30.24 points to close at 3,913.10 and the Nasdaq lost 104.63 points to close at 13,215.24.

The markets appeared most focused on the Federal Reserve meeting and the rise in yield for 10 year U.S. treasuries as they cracked 1.75% during the week. Despite a rally following the Fed Meeting, rising rates and a steepening yield curve seem to represent the primary market concerns. While the Fed appears to have adopted a wait-and-see stance on potential inflation, more details around the Infrastructure Plan should be imminent with Transportation Secretary, Pete Buttigieg, testifying before the House this week. The same storylines surrounding the reopening of the economy persist and remain fluid as vaccinations are distributed and regions begin to relax Covid protocols.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their ETFG Quant Total Scores.

ETFG Weekly Quant Winners: The three biggest gainers in their ETFG Total Quant Scores were found in the Fidelity MSCI Information Technology Index ETF (FTEC) which gained 13.15 points to 44.50, the Invesco Variable Rate Preferred ETF (VRP) which added 8.44 points to 59.25 and the Amplify Online Retail ETF (IBUY) which climbed 8.10 points to an ETFG Total Quant Score of 67.30.

ETFG Weekly Quant Losers: The three biggest drops in their respective ETF Quant Total Scores were found in the John Hancock Multifactor Financials ETF (JHMF) which dropped 10.08 points to 41.25, the ELEMENTS SPECTRUM ETN (EEH) losing 8.73 points and the Barclays Women in Leadership ETN (WIL) which retrenched 7.49 points in its ETFG Total Quant Score.

Thanks for reading ETF Global Perspectives and have a great week!

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