/Marching On

Marching On

Monday, March 4, 2019 – After five days of tepid swings downward, stocks ended the week a few basis points up, securing a 10th straight week of price gains for the best two-month start to the 1st quarter market in 32 years. However as mentioned last week, Monday brought uncertainty as investors seemed agitated by four persistent market concerns – recession worries, trade tensions, the global slowdown and a resumption of Fed rate hikes. Michael Cohen’s testimony and the U.S. North Korea summit in Vietnam also generated a lot of headlines, yet, didn’t cause any direct market implications.

On the economic front, delayed fourth-quarter GDP came in slightly stronger than expected at 2.6% with 2018 marking the best year of GDP growth in last decade coming in at a strong 2.9%. Though uncertainties remain, what the markets learned this week supports the case for an upward climb for stocks in 2019, albeit at a notable slower pace. Stocks didn’t react much to the news as a delay was already priced in, with investors now focused on a trade agreement materializing with China. Speaking of China, on Thursday MSCI announced that it is quadrupling the weighting of Chinese mainland shares in its global benchmarks later this year, this move is predicted to draw upwards of $80 billion of fresh foreign inflows to the world’s second-biggest economy. MSCI also said that it will add Chinese mid-cap stocks to its emerging market benchmark in November, boosting the number of Chinese constituents in a variety of ETFs like KraneShares Bosera MSCI China A ETF (KBA).
Turning to market news, the S&P 500 increased 0.4% this week, extending its yearly gain to 11.8%, as shares of financial (+0.8%), information technology (+1.0%), and energy (+1.1%) sectors outperformed the broader market. In earnings news, retailers had a pretty good showing. Macy’s (M), AutoZone (AZO), Lowe’s (LOW), TJX (TJX), Best Buy(BBY), Gap (GPS), and Foot Locker (FL) all climbed on better-than-expected results. Home Depot (HD), too, had a solid fourth quarter but issued a not-so-great earnings report – the SPDR S&P Retail ETF (XRT) increased 2.3% this week. Investors looking for alternative ways to invest in high concentrations of the aforementioned stocks ought to utilize ETFG’s Grey Market Summary to identify investment opportunities.
ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, ETFG Quant ratings:
ETFG Quant Winners: The top five ETFG Quant gainers from this past week included funds with an EM focus as expected from trade related headlines concurrent with strong performers, as well as, a few unexpected showcases. In order the top gainers were X-trackers MSCI EAFE Hedged Equity Fund (DBEF), KraneShares Bosera MSCI China A ETF (KBA), Alpha Architect International Quantitative Momentum ETF (IMOM), Global X MSCI China Consumer Discretionary ETF (CHIQ) and X-trackers MSCI Germany Hedged Equity Fund (DBGR) seeing a point increase of 11.14, 10.16, 10.08, 10 and 9.6 to their overall score.
ETFG Quant Losers: Notable losers included iShares U.S. Oil Equipment & Services ETF (IEZ), iShares Core MSCI EAFE ETF (IEFA), ProShares S&P 500 Ex-Technology ETF (SPXT), Global X Gold Explorers ETF (GOEX) and Global X Gold Explorers ETF (GOEX) seeing declines of -8.4, -8.4, -7.65, -7.6 and -7.29 to their respective overall score.
ETFG Weekly Select List – the five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.
We saw some significant movement in the North American section of the Geographical category when comparing last week’s Select List to the most current one. New names to this portion of the weekly report included SPDR Portfolio S&P 500 Value ETF (SPYV) bringing up the rear at 5th place and iShares Russell Mid-Cap ETF (IWR) snagging 3rd iShares Nasdaq Biotechnology ETF (IBB) jumped from 3rd to 1st place. This resonates well with an article we published last week after some impressive headlines. To read the full analysis please see the link here: Biotech Is Worth The Hype, But Do You Have The Data?
Thank you for reading ETF Global Perspectives!
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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 of or from that investment to the investor.

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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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