/A Partial Reopening

A Partial Reopening

Monday, May 4, 2020 The markets kicked off the week with hopeful expectations that overall COVID-19 cases were ticking down throughout the country and reprieve from the ongoing lockdown was on the way with some parts of the country relaxing restrictions. News of a possible treatment for patients helped spark a rally for markets on Wednesday. Gilead Sciences announced that its drug, Remdesivir, had performed well in a large trial in reducing the severity of the disease.

Major indices ended slightly lower for the week after a sizable Friday selloff, partly fueled by an unexpected flare-up in the U.S.-China trade rhetoric. They were able to shake off news that first quarter GDP contracted 4.8% vs. the expected decline of -3.5% and closed out April on a high note. The markets posted their best monthly gains in decades with the Dow and the S&P 500 both charting their best monthly performance since January 1987. The Dow climbed 11.1%, and the S&P 500 rose 12.7%. The Nasdaq Composite gained 15.4% for the month, its best performance since June 2000.  The markets were also encouraged by the Fed ensuring their plan to keep rates at 0-.25% for the foreseeable future. For the week, The Dow Jones Industrial Average and the S&P 500 Index both declined -0.2%, while the Nasdaq experienced a -0.3% loss as of Friday’s close.
ETFG Equity Exposure Report – Amazon.com (AMZN), reported after the close of trading Thursday and beat consensus revenue expectations as shoppers increasingly turned to online purchasing amid the pandemic, keeping them away from brick and mortar stores. Amazon’s earnings fell as the company spent heavily to keep up with booming demand. Shares dropped sharply on Friday on news that the House Judiciary Committee had asked CEO Jeff Bezos to testify about allegations that the company had earlier misled Congress on how it interacted with third-party sellers on its site, leading to a painful -7.6% drop in Friday trading. Even so, digital commerce is still expected to remain a bright spot in an otherwise fragile economic recovery.  The ETFs weighted most heavily with Amazon.com stock are the Vanguard Consumer Discretionary ETF (VCR), the Consumer Discretionary Select Sector SPDR ETF (XLY), the VanEck Vectors/Retail ETF (RTH), the ProShares Trust Online Retail ETF (ONLN), and the ProShares Long Online/Short Stores ETF (CLIX).
ETFG Quant Movers – The ETFs that had the largest weekly change in their respective, overall ETFG Quant ratings.
ETFG Quant Winners: This week, we are highlighting the ETFs that saw the largest movement in our ETFG Quant Total Score. The ETFs with the biggest percentage increases in their ETFG Quant Total Score this week were the iPath S&P MLP ETN (IMLP), the Innovator IBD ETF Leaders ETF (LDRS), the Franklin FTSE Europe Hedged ETF (FLEH), the Global X SuperIncome Preferred ETF (SPFF), and theVictoryShares Developed Enhanced Volatility Wtd ETF (CIZ).
ETFG Quant Losers: The ETFs with the biggest percentage decreases in their ETFG Quant Total Score this week were the First Trust Preferred Securities and Income ETF (FPE), the Invesco S&P 500 Top 50 ETF (XLG), the Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), the Elements Spectrum ETN (EEH), and the First Trust Switzerland AlphaDEX Fund (FSZ).
ETFG Weekly Select List – The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model. After taking a beating in the preceding weeks, the energy sector emerged strong this week with production cuts beginning to take hold and U.S. Oil Price Futures rising nearly 17% by Friday’s close. The 5 ETFs in the Energy sector with the highest ratings from our ETFG Quant model include: the Invesco Dynamic Energy Exploration & Production ETF (PXE), the SPDR S&P Oil & Gas Equipment & Services ETF (XES), the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the First Trust Natural Gas ETF (FCG), and the Invesco S&P SmallCap Energy ETF (PSCE).
Thanks for reading ETF Global Perspectives!
_______________________________________________________
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.

Sponsored Financial Content

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.

ETFG keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities.  As a result, certain business units of ETFG may have information that is not available to other ETFG business units.  ETFG has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

ETFG may receive compensation for its ratings and certain analyses.  ETFG reserves the right to disseminate its opinions and analyses.  At times, ETFG’s public ratings and analyses are made available on its Websites, www.etfg.com (free of charge) and may be distributed through other means, including via ETFG publications and third party redistributors.

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 of or from that investment to the investor.

The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision.  This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you nor is it considered to be investment advice. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.