/Seasonal Deal of the Day?

Seasonal Deal of the Day?

Monday, December 17, 2018 – This time of year, most people are regularly reminded about the “deal of the day.” However, the markets continue to be jolted by the “worry of the day.” Both may capture your short-term headlines and while best deals are usually gone in a flash, many of the worries are part of bigger themes that could continue to keep markets volatile. Investors are constantly reminded by signs of slower economic global growth, trade conflicts and concerns about the pace of Federal Reserve interest rate increases.

Next week, the main focus will be on the Federal Open Market Committee (FOMC) decision on Wednesday, where the Fed is generally expected to raise rates by 25 bps. Other important economics include releasing housing and building stats on Tuesday, along with consumer confidence on Friday. Typically, stocks have risen along with the underlying fundamentals of economic and earnings growth, which has a strong chance of remaining positive – making long-term picks the “deal of the day.”
Most major benchmarks ended lower for the week. The technology-heavy Nasdaq Composite Index (Fidelity NASDAQ Composite Index Tracking Stock (ONEQ)) held up best and ending the week in positive territory for the year-to-date period. Smaller-Cap shares performed worst, with both the S&P MidCap 400 Index (SPDR S&P Midcap 400 ETF Trust (MDY)) and the Russell 2000 Index (iShares Russell 2000 ETF (IWM)) hitting new 52-week lows. Within the S&P 500 Index, Utilities shares performed best (Utilities Select Sector SPDR Fund (XLU)), while Financial shares (Financial Select Sector SPDR Fund (XLF)) were notably weak due to concerns over tighter lending margins due to declines in longer-term Treasury yields.
ETFG Weekly Quant Movers – In the ETFG Quant Movers, we saw both Sector and Factor oriented ETFs gain the most percentage points to their overall scores. To highlight a few, Invesco Global Agriculture ETF (PAGG) and WisdomTree International Dividend Ex-Financials Fund (DOO) saw a 18.02% and 17.50% gain respectively. While USAA MSCI International Value Momentum Blend Index ETF (UIVM) and iShares Core High Dividend ETF (HDV) had a 21.73% and 18.92% respective gain to their Quant Total Score.
Honorable mentions in the loser’s column, we saw a blend of ETPs dropping some percentage points to their overall score. The iShares Core S&P Total U.S. Stock Market ETF (ITOT), Schwab U.S. Large-Cap Value ETF (SCHV) and Oppenheimer Russell 2000 Dynamic Multifactor ETF (OMFS) lost 22.46%, 20.84% and 19.74% to their overall scores respectively.
Since we’ve seen some major volatility within the financial sector the last week, we’d like to highlight some substantial movement when comparing this week’s Select List to last. The top three spots have completely changed hands. In order from 1st to 3rd, added to the list were First Trust Nasdaq Bank ETF (FTXO), Invesco KBW High Dividend Yield Financial ETF (KBWD) and Fidelity MSCI Financials Index ETF (FNCL). Also, notable movement was seen in the Technology sector where First Trust Nasdaq Semiconductor ETF (FTXL) moved to the 1st position and SPDR NYSE Technology ETF (XNTK) claimed 3rd, moving from second and fourth spots respectively.
Thanks for reading ETF Global Perspectives!
_____________________________________________________________
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.

More Financial Content

Sponsored Video

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.

ETFG may receive compensation for its ratings and certain analyses.  ETFG reserves the right to disseminate its opinions and analyses.  At times, ETFG’s public ratings and analyses are made available on its Websites, www.etfg.com (free of charge) and may be distributed through other means, including via ETFG publications and third party redistributors.

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.