/Winds of Change?

Winds of Change?

Monday, October 8, 2018 – Happy Columbus Day and the weather isn’t the only thing cooling down this fall season. In a move that mirrored the beginning of the year, equity markets took a drop last week due primarily to the rising rates of the 10-year treasury yield. The Dow Jones Industrial Average dropped over 200 points to 26,447 while the S&P 500 took a 50 point hit. The Nasdaq Composite was by far the biggest loser of the week falling over 300 points, a decline of about 3.2%, as Tech stocks led the way.

In ETFs, banking and tech ETFs saw some of the greatest outflows in this first week of October, according to our ETFG Fund Flow summary. One of the ETFs that took the biggest hit was  FTXO, the First Trust Nasdaq ETF. In the month of October, FTXO has lost just under $1B or about 43% of its AUM. QQQ, which is Invesco’s Nasdaq Composite ETF, has followed suit with outflows of over $700m or 1.14% of its AUM.
ETFG Quant Movers In the ETFG Quant Movers, we saw risk averse ETPs gain the most percentage points to their overall scores. The Cambria core equity ETF (CCOR), Credit Suisse S&P MLP ETN (MLPO) and the JPMorgan Diversified Return International Currency Hedged ETF (JPIH) added 20.51%, 19.90% and 18.71% to their overall Quant scores respectively.
In the Losers column, we saw international based ETPs dropping several percentage points to their overall score. The VictoryShares International High Dividend Vol. Weighted ETF (CID), Schwab Emerging Markets Equity ETF (SCHE) and the iShares Edge MSCI Min Vol Europe ETF (EUMV) lost 20.81%, 19.67% and 15.86% to their overall scores respectively.
Because of the sector’s success in the major indexes this week, we’d like to highlight some substantial movement in the Consumer Discretionary portion when comparing this week’s Select List to last. The Columbia Emerging Markets Consumer ETF (ECON) jumped up two spots to be the top ranked fund in the sector. It took over for the Invesco Dynamic Leisure and Entertainment ETF (PEJ) which is now in the 4th ranked spot. The SPDR S&P Retail ETF (XRT) held steady at the 2nd spot for two consecutive weeks while the Invesco Dynamic Retail ETF (PMR) moved up to 3rd place. The biggest change in the sector was (FXD), the First Trust Consumer Discretionary AlphaDEX Fund, which jumped into the 5th ranked spot knocking out the John Hancock Multifactor Consumer Discretionary ETF (JHMC).
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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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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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