/Financials Lead a 5th Straight Week of Gains

Financials Lead a 5th Straight Week of Gains

Monday, November 11, 2019 – Happy Veterans Day to all!  Stocks extended their recent gains last week, finishing higher for the fifth consecutive week. In fact, the Dow Jones Industrial Average joined the S&P 500 and Nasdaq Composite Indexes in setting all-time highs. Recent signs of progress on trade negotiations, along with better-than-expected corporate earnings were the cause of positive investor sentiment. In addition, a sharp increase in longer-term bond yields and third-quarter corporate earnings also drove markets. The third-quarter earnings season is near its end with roughly 90% of S&P 500 companies having reported results.

Financial stocks outperformed as increasing interest rates favored banks’ lending operations. Rising long term bond yields weighed heavily on real estate and utilities shares mostly due to their respective dividend yields became less appealing. As it relates to ETFs, the U.S. listed ETP saw a weekly inflow of approximately $12 billion in assets. The equity market received the lion share of inflow as Invesco QQQ Trust (QQQ), SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO) saw a net inflow of approximately $1.6 billion, $1.2 billion and $975 million respectively. For a granular break down of net flows, investors can utilize ETF Global Fund Flow Summary.
ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.
ETFG Quant Winners: The top five gainers in ETFG Quant Total Score were Reality Shares Nasdaq NexGen Economy ETF (BLCN), WBI Power Factor High Dividend ETF (WBIY), Vident International Equity Fund (VIDI), Invesco RAFI Strategic Developed ex-US ETF (ISDX) and SPDR S&P Telecom ETF (XTL). Each ETP added approximately 7 points to their overall ETFG Quant score.
ETFG Quant Losers: Honorable mentions in the loser category were Invesco Dynamic Large Cap Value ETF (PWV), SPDR S&P Health Care Services ETF (XHS), WisdomTree Europe Hedged Equity Fund (HEDJ), FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (TLTE) and First Trust International Equity Opportunities ETF (FPXI). The causes can be traced to behavioral factors dipping slightly impacting the respective ETFG Total Quant scores by approximately 4 points each.
ETFG Weekly Select List – The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.
Considering the sector’s success, we’d like to highlight the top ETFs within the financial sector in this week’s Select List. SPDR S&P Insurance ETF (KIE) held onto the 1st place position followed by Davis Select Financial ETF (DFNL) in 2nd, iShares Evolved U.S. Financials ETF (IEFN) in 3rd and John Hancock Multifactor Financials ETF (JHMF) in 4th place. All preceding the newcomer to the list, Invesco KBW High Dividend Yield Financial ETF (KBWD) came in 5th.
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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.
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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