/Tough Sledding

Tough Sledding

Monday November 26, 2018 – Thanksgiving did little to lighten the mood in the markets, as last week’s selloff continued unbated to sink U.S. stocks to their lowest levels in more than a year and erase yearly gains. This week’s downbeat atmosphere was ignited by mounting growth concerns for the formerly high-flying technology sector. The specter of trade conflicts and their consequent disruption to global supply chains and demand, along with fears of stretched valuations and a looming regulatory clampdown, helped spark a selloff in technology. This selloff soon bled into other sectors, notably in Consumer Discretionary where concerns about slowing global growth, rising costs and flattening margins weighed heavily.

Other areas of the market flashed similar warning signs. Unresolved and escalating U.S.-China trade tensions continued to cast a pall, while European political turmoil surrounding Italy and Brexit loomed large. Negative economic data in U.S. housing starts, durable goods orders and consumer confidence further fueled this negative backdrop. Lastly, turbulence in the energy markets added to the already strong selling pressure. Concerns about rising inventories, contracting demand, a rising U.S. dollar and global policy divergence helped extend oil price’s decline to its lowest level in over a year and down over a third since October.
Following this week’s abbreviated, yet frenetic activity, the S&P 500, DJIA and Nasdaq suffered declines of 3.8%, 4.4% and 4.3% respectively.
ETFG Quant Movers – those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings:
ETFG Quant Winners: Reality Shares DIVCON Dividend Guard ETF (GARD) experienced the largest rise in it’s weekly ETFG Quant score with a 38.65% gain. As growth stocks come under increasing pressure, ETFs with steady dividend paying constituents may offer some ballast.
Other notable gainers include the iShares Edge MSCI Min Vol Emerging Markets ETF (EEMV) and Invesco S&P International Developed Quality ETF (IDHQ), which illustrates our model’s current emphasis on quality and stability amid the current fraught global environment.
ETFG Quant Losers: Unsurprisingly, growth and technology focused ETFs are heavily featured in this week’s top losers list. These include the SPDR Portfolio S&P 500 Growth ETF (SPYG), Vanguard Information Technology ETF (VGT), and First Trust Nasdaq Semiconductor ETF (FTXL), which all shed over 8.0% on the week.
This week the highest rated fund by Sector is the iShares Nasdaq Biotechnology ETF (IBB) with a 69.80 quant score. Last week’s leader was the iShares Global Healthcare ETF (IXJ). Healthcare’s leadership hold reflects its broadly favorable sector outlook according to our model.
Conversely, the lowest rated Sector fund this week is the SPDR S&P Telecom ETF (XTL) with a 54.90 score. That is a shift from last week where the VanEck Vectors Gold Miners ETF was the lowest rated fund with a score of 57.50.
By Geographic Region, the iShares MSCI Turkey ETF (TUR) sits atop our weekly rankings with a quant score of 74.60 and a 10 Reward score. TUR also leads our weekly rankings by Strategy, where it resides within the broad equity group. This is a change from last week, when the U.S. focused iShares Russell Mid-Cap ETF (IWR) led the geographic and strategies rankings with a 73 score. IWR sits with in the North American and Mid Cap peer groups.
To help navigate the current volatile investing environment, monitor our weekly Select List to help identify attractive opportunities within the vast U.S. listed ETP marketplace.
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 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.

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.