/Elements of the New Normal

Elements of the New Normal

Monday, April 27, 2020– After a rocky start as a result of a massive oil sell-off, stocks rallied later in the week, led by the technology sector. Still, markets ended this roller-coaster week slightly down, snapping 2 consecutive weeks of gains. Oil prices fell deep into negative territory as the week began, driven down by plummeting demand and storage capacity. Passage of a $484 billion coronavirus aid package, which included additional funding for small businesses through the Paycheck Protection Program, helped markets make up some of that ground. But the economy still faces significant challenges. With another 4.4 million Americans filing for unemployment benefits in the previous week, some 26.5 million people have been laid off or furloughed in the U.S. from mid-March to mid-April.

The Dow Jones Industrial Average dropped 1.9% this week, as the S&P 500 slipped 1.3% and the Nasdaq fell 0.2%.
ETFG Equity Exposure Report – As consumers continue to turn to video conferencing services to replace in-person meetings as a result of COVID-19, Facebook (FB) shares climbed this week on reports of the company’s expanding video chat capabilities. Facebook announced that this revamped service will allow for many more simultaneous participants, which also sent investors fleeing rival Zoom Video Communications (ZM). The ETFs weighted most heavily with Facebook stock are the Communication Services Select Sector SPDR Fund (XLC), the Fidelity MSCI Telecommunication Services Index ETF (FCOM), the Vanguard Communication Services ETF (VOX), the Direxion Daily Communication Services Index Bull 3X Shares (TAWK), and the iShares Global Telecom ETF (IXP).
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 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 MSCI SuperDividend Emerging Markets ETF (SDEM), and the AdvisorShares Vice ETF (ACT).
ETFG Quant Losers: The ETFs with the biggest decreases in their ETFG Quant Total Score this week were the ELEMENTS SPECTRUM ETN (EEH), the First Trust Preferred Securities and Income ETF (FPE), the Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), the iShares MSCI Finland ETF (EFNL), and the SPDR Solactive Germany ETF (ZDEU).
ETFG Weekly Select List – The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.
The social distancing restrictions brought on by COVID-19 have led to more reliance on technological workarounds — and some big gains for parts of the Technology sector. This week, we’re focusing on the 5 ETFs in the Technology sector with the highest ratings from our ETFG Quant model. They are: the First Trust Nasdaq Smartphone Index Fund (FONE), the First Trust NASDAQ 100 Technology Index Fund (QTEC), the Global X Social Media Index ETF (SOCL), the iShares Expanded Tech Sector ETF (IGM), and the iShares PHLX Semiconductor ETF (SOXX).
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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.

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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.

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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.

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