/Record Highs and 2021

Record Highs and 2021

Monday, January 4, 2021 – After a year like no other, we wish all our readers, clients and partners great health, happiness, and prosperity in 2021!  Last year was filled with sadness, loss and tragedy resulting from the COVID-19 pandemic. While the beginning of 2021 may closely resemble 2020, this new year brings an opportunity to refresh.

To recap the markets for 2020, the Dow climbed 7.3%, while the S&P rose 16.3% and for the Nasdaq, it was best year since 2009 with a 43.6% gain. All three major equity indexes ended higher last Thursday, the final trading day of the year. The DJIA closed up 197 points or 0.7% and the broader S&P 500 rose 0.6%. The Nasdaq climbed 0.1%, falling just short of its Monday record.

As we look forward into 2021, the U.S. economy remains challenged with millions of unemployed and a daunting business environment. That said, there are also glimmers of hope such as Thursday’s U.S. data showing first-time jobless weekly claims unexpectedly declining by 19,000 to 787,000 after being forecast at 835,000. The new, stimulus bill signed Sunday coupled with the expectation of additional government support should help in getting the economy back on track.

The world of ETFs were one of the few bright spots in 2020, experiencing substantial growth on several fronts. The ETF Ecosystem welcomed an eclectic group of new ETF Issuers along with a series of new product strategies and structures.

ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: In the abbreviated last trading week of 2020, the top 5 ETFs with the largest percentage gains in their respective ETFG Quant Model Total Score were Vanguard Mega Cap Growth ETF, Vanguard S&P 500 Growth ETF, Oppenheimer Russell 1000 Quality Factor ETF, ProShares S&P 500 Ex-Energy ETF and Invesco FTSE International Low Beta Equal Weight ETF with gains of 40.68%, 22.05%, 20.94%, 20.74% and 19.40% respectively.

ETFG Quant Losers: Last week the top 5 ETFs with the largest percentage drop in their ETFG Quant Total Score were Cambria Core Equity ETF, First Trust Dorsey Wright Peoples Portfolio ETF, iPath S&P MLP ETN, CSOP MSCI China A International Hedged ETF and ProShares Decline of the Retail Store ETF with drops in their Quant Total Score of -42.30%, -34.05%, -33.37%, -26.78% and -26.52% respectively.

ETFG Weekly Select List – The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.

In continuing to enhance the actionable strategies that our users can lever from our ETFG Quant Model, this week we highlight the most favored Categories within our ETFG Weekly Select List.

By Sector – The Top 5 Energy ETFs lead all other sectors with an average score of 77.78 followed by the Top 5 Financial ETFs with an average ETFG Quant Score of 69.76. By Geography – For the week, the Top 5 ETFs by Geographic Region were the North American Region with an average score of 77.18 and the Global Category with an average score of 71.10. By Strategy – The Weekly Select List most favored two strategies that scored closely in the last week of the year:  The Small Cap Category with an average of 66.34 for its Top 5 ETFs and the Broad Equity category with an average score of 65.76.

Happy New Year and thanks 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.

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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.

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.