/Re-Opening on the Horizon

Re-Opening on the Horizon

Monday, June 1, 2020– After another mixed week in the market, we are starting to see more and more investor optimism over a potential re-opening of the US economy. We saw 3.75% gain this week for the Dow Jones Industrial Average, 3.01% gain for the S&P 500, and a 1.77% gain for the Nasdaq Composite. On a 4-day week in the market, Tuesday and Wednesday opened with high gains on news of a potential reopening of the US economy coming soon, aided by positive reports on Covid-19 vaccine/prevention programs. The large gains from these two days were pulled back on Thursday after news of President Trump announcing a response to the escalating US-China tensions after China put stricter security laws into Hong Kong. Friday, President Trump did not mention anything about trade sanctions between the two countries, which ended the week’s close on a stronger note. Overall, the markets approach their highs before the Coronavirus impacted the US economy; edging closer to a potential re-opening can only provide more optimism for investors.

ETFG Quant Movers – We highlight those ETFs with the largest movement in our ETFG Quant Score.
ETFG Quant Winners: The ETFs with the biggest percentage increase in their ETFG Quant Score this week were PNQI, LDRS, JKD, JPLS, and SKYY with 35.71%, 31.29%, 29.12%, 28.52%, and 27.16% gains respectively. What’s worthy to note is that 2nd and 3rd place % Gainers, LDRS and JKD, are two ETFs that seek to track the overall US markets and the largest US Companies, and this may coincide with the overall positive week the US market had.
ETFG Quant Losers: The ETFs with the biggest percentage decrease in their ETFG Quant Score this week were FNDE, PWV, EDIV, QDEF and FDG, with % losses of -25.99%, -20.44%, -20.02%, -19.82%, and -19.80% respectively. The 1st and 3rd biggest losers, FNDE and EDIV, are both emerging markets ETFs, which can be attributed to the tumultuous weeks that emerging markets such as China and Brazil faced.
Lastly, we’ll look at the ETFG Weekly Select List and compare this week’s list to the previous week.
ETFG Weekly Select List – The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.  We highlight the ‘Sector’ Category where we see some of the biggest movers this week include:
· CIBR (First Trust Nasdaq Cybersecurity ETF), which moved from 3rd place to 1st place this week in the ‘Technology’ sub-focus.
· XLF (Financial Select Sector SPDR Fund), which went from unranked the previous week to 1st place this week in the ‘Financials’ sub-focus.
· FXG (First Trust Consumer Staples AlphaDEX Fund), which went from unranked the previous week to 2nd place this week in the ‘Consumer Staples’ sub-focus.
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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.
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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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