/Hoping the Curve is Flattening

Hoping the Curve is Flattening

Monday, April 13, 2020– Encouraging trends in coronavirus infection rates coupled with unprecedented measures of support initiated by the Federal Reserve helped propel stocks to their largest weekly gains since 1974. News that hospitalizations and fatalities in global hot spots, like New York and Italy, have begun to slow brought relief to investors and injected some momentum into the markets. This momentum was bolstered by the unveiling of a $2.3 trillion Federal Reserve lending program designed to help municipalities, small and mid-sized businesses. Additional upward momentum was provided, as the Fed further expanded its remit into unchartered territories, with its commitment to expand its emergency lending programs to allow lower-quality debt. This confluence of news was able to surmount mounting signs of economic contraction, with another surge in weekly unemployment claims and job losses.

Following this holiday-shortened week, the S&P 500, DJIA and Nasdaq were up 12.1%, 12.7%, and 10.6% respectively.
ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.
ETFG Quant Winners: Since much of this week’s market movement was sentiment-driven, we’d like to highlight the ETFs that experienced the largest moves in the behavioral component of our Quant model.
The ETFs achieving the largest upward moves in their ETFG Behavioral Quant scores this week were the Innovator IBD ETF Leaders ETF (LDRS), iPath S&P MLP ETN (IMLP), WisdomTree Emerging Markets SmallCap Dividend Fund (DGS), Franklin FTSE Europe Hedged ETF (FLEH), and iShares MSCI EAFE Value ETF (EFV).
ETFG Quant Losers: The ETFs suffering the steepest downward moves in their ETFG Behavioral Quant scores this week were the First Trust Preferred Securities and Income ETF (FPE), Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), SPDR Solactive Germany ETF (ZDEU), Elements Spectrum ETN (EEH), and iShares Evolved U.S. Technology ETF (IETC).
ETFG Weekly Select List – The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

With small caps surging this week following the Federal Reserve’s massive new lending program, we’d like to show the 5 ETFs that currently sport the highest ratings according to our models. From 1-5, our current leaders in the small cap segment are the Invesco S&P SmallCap 600 Pure Value ETF (RZV), Oppenheimer S&P SmallCap 600 Revenue ETF (RWJ), iShares S&P Small-Cap 600 Value ETF (IJS), Columbia India Small Cap ETF (SCIN), and WisdomTree U.S. SmallCap Earnings Fund (EES).
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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.

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.

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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.

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.