/Big Tech Ignores Dog Days of Summer

Big Tech Ignores Dog Days of Summer

Monday, August 24. 2020 – This week, we saw yet another amazing rally from the US technology giants, continuing what has been a monstrous quarter from this industry throughout the COVID pandemic. On the week-end close, we saw the S&P 500 close at an all time high of 3,397.16 this week, which was a .72% weekly gain. The Nasdaq Composite closed at 11,311.80, which was a 2.65% weekly gain. Finally, the Dow Jones finished this week at 27,930.33, which was a 0% gain.

Tech giants, mainly Apple and Tesla, are a big reason we saw positive performance in the above indices, as Apple closed with a whopping $2 trillion valuation, separating itself as the clear-cut, most valuable US stock. Likewise, since Tesla’s stock split announcement on August 11th, the stock has gained nearly 50% in value. Apple’s weekly gain of 5.15% and Tesla’s weekly gain of 2.41% were big reasons the S&P and Nasdaq performed well. The question now becomes, how much longer can big tech hold up the economy before the other industries are able to catch up? The three major indices would tell you that our economy has recovered well from the Coronavirus thus far, but this is a bit narrow as big tech is dominating these results by having such towering performances over the past few months, leaving other industries, such as the travel industry, unrecovered and in the shadows of FAANG and its contemporaries.

ETFG Quant Movers – The ETFs that had the largest weekly change in their respective, overall ETFG Quant ratings. We look at this week’s top 5% Gainers and % Losers in the ETF universe.

ETFG Quant Winners: On the % Gainers side, we have PNQI, LDRS, JKD, JPLS, SKYY, posting 35.71%, 31.29%, 29.12%, 28.52%, and 27.16% respectively. A common theme in these ETFs are that they either focus on US tech/internet stocks (such as PNQI and SKYY) or US Large-Cap stocks, such as JKD and LDRS. Since these companies led the way this past week in the economy, it makes sense as to why they came out on top in our daily updated ETFG Quant model.

ETFG Quant Losers: On the % Losers side, we have FNDE, PWV, EDIV, QDEF and FGD. They posted weekly losses of -25.99%, -20.44%, -20.02%, -19.82% and -19.80% respectively. A common theme on this side shows us 4 of the 5 ETFs either aim to follow an Emerging Markets Index or a Dividend Index. What our model could be telling us, at least terms of the Emerging Markets ETFs, is that the world economy is still getting hit from the Coronavirus and while big tech has been able to carry the US economy during this time, smaller countries are not so fortunate.

ETFG Weekly Select List: The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

Finally, we will look at the ETFG Weekly Select List. We will be comparing last week’s list to this week, seeing which ETFs made the largest moves. Our focus today is on ‘Geography’. IJS (iShares S&P Small-Cap 600 Value ETF) made a huge move from 5th place the previous week to 1st place this week in the ‘North America’ sub-region. ICOL (iShares MSCI Colombia Capped ETF) made a move from 2nd place to 1st place in the ‘Emerging Markets’ sub-region. And lastly IPFF (iShares International Preferred Stock ETF) went from being unranked the previous week to 2nd place in the ‘Developed Markets’ sub-region.

Thanks for reading ETF Global Perspectives!

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.

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.