About Scott McKenna

Sales & Marketing Associate

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WHERE TO FIND RETURNS ON ALL THAT HO-HO-HOLIDAY SHOPPING

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The holiday season is officially upon us and that only means one thing: shopping!

Despite many worrying about a potential economic recession and concerns over tariffs, the holiday shopping numbers are already off to a strong start this year. Between Black Friday and cyber monday, it was estimated by the National Retail Federation that nearly 190 million consumers went shopping, up 14% from last year. THE NRF also expects holiday sales to grow around 4% in total for the whole season.

So how can investors cash in on holiday sales to boost their portfolios through December? The answer is retail ETFs. There are a number of ETFs which offer exposure to the retail industry, but there are really four names to offer full exposure: Amplify Online Retail ETF IBUY, ProShares Online Retail ETF ONLN, VanEck Vectors Retail ETF RTH,  SPDR S&P Retail ETF XRT, and Global X E-commerce ETF EBIZ. We put IBUY, ONLN, RTH, XRT and EBIZ under the lens to see which deserves to be on Santa’s nice and naughty lists. 

Here’s a quick ticker comparison table from the ETFLogic insights platform:

 Amplify Online Retail ETFProShares Online Retail ETFVanEck Vectors Retail ETFSPDR S&P Retail ETFGlobal X Ecommerce ETF
TIckerIBUYONLNRTHXRTEBIZ
NAV$48.43$34.52$118.39$43.89$17.8
Exp. Ratio0.65%0.58%0.35%0.35%0.50%
AUM$241,659,000$21,748,520$103,180,600$348,953,700$6,167,035
InceptionApr 20, 2016Jul 13, 2018May 02, 2001Jun 19, 2006Nov 27, 2018
GeographyGlobalGlobalUSUSGlobal
TruCost Score★★★★★★★★★⭑★★★★★★★★★★★★★⭑
# Constituent5025258643

All data as of 12.9.2019

One of the biggest things that stands out right away between the ETFs are their geographic exposure. RTH and XRT are US only, so if you want to cash in on all of the international cheer you should go with IBUY, ONLN or EBIZ. But be ready to pay for that international exposure, as IBUY has a 65bps fee while ONLN has a 58bps fee and EBIZ a 50bps fee.

Even though IBUY has a higher fee, it also has a five star ETFLogic TruCost rating. The TruCost Score is a 5-star ranking of an ETF’s liquidity versus trades of the same size for peer ETFs – we can see ONLN and EBIZ only have a four and a half star rating.

This year’s online sales have reached all-time highs already this year with Cyber Monday shopping totaling $9.4B, with a $1.5B increase since last year. While RTH and XRT definitely offer exposure to retail companies with a strong online presence, we’re going to continue comparing online focused ETFs IBUY, ONLN, and EBIZ.

Here’s a look at top 10 holdings to help determine which ETFs will give you the best online shopping exposure.

Top 10 holdings:

IBUY% WeightONLN% WeightEBIZ% Weight
Peloton3.62%Amazon23.77%NetEase5.28%
Land’s End3.46%Alibaba13.25%Vipshop Holdings5.03%
Carvana2.96%Chewy4.73%Shopify4.89%
GrubHub2.95%Shutterstock4.70%Ocado Group4.76%
Chegg2.90%Stitch Fix4.63%Alibaba Group4.75%
Copart2.86%Groupon4.57%58.com4.41%
Uber2.82%Ebay4.41%Booking Holdings4.36%
Lyft2.79%Etsy4.36%JD.com4.33%
Netflix2.79%Stamps.com4.35%Costar Group4.26%
Paypal2.76%GrubHub4.27%Just Eat3.98%

As of 12.9.2019

Just by comparing the top 10 holdings you can definitely see that IBUY has a much more diversified portfolio, while ⅓ of ONLN is just made up of Amazon and Alibaba.  

Performance:

 IBUYONLNEBIZ
Year-to-Date22.27%15.74%28.19%
One Week0.63%0.33%1.32%
Two Weeks0.90%0.21%1.31%
One Month3.52%1.51%3.22%
Three Months-1.51%-1.92%-0.32%
Six Months2.42%-5.75%-0.30%

Based on historical performance, EBIZ has outperformed IBUY by 95 bps over the past year and has significantly outperformed ONLN. Due to historical performance, we’ll disqualify ONLN.

With IBUY and EBIZ left, we’ll take a look at the overlap between the two ETFs. The two ETFs share 22 common constituents with a 34% total overlap. Due to the small amount of total overlap, we would therefore recommend a portfolio of both IBUY and EBIZ to offer the most diversified way to cash in on holiday returns.

ETF Market Weekly Update

12/6 WEEKLY UPDATE

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The week started off shaky as the Trump administration reinstated tariffs on steel and aluminum for Argentina and Brazil and also mentioned US-China tensions might be pushed off until after the US election. A strong jobs report helped US equities to finish the week off on a more solid note.

European equities were mixed, driven by major political headlines coming out of the UK and economic data from November that potentially signals the eurozone economy has somewhat stabilized.

Japanese markets saw gains for the week, driven by a recent ¥13T fiscal stimulus package announced by prime minister Shinzo Abe.

Chinese equities also gained after weeks of declining, driven by positive sentiments around a partial US-China Trade deal from Chinese investors.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

The iShares MSCI Chile ETF ECH saw huge gains last week. With all of the political volatility the country has seen, there are now hopes around reform of the country as the government has been discussing a potential $5.5 billion economic recovery plan.

Energy and biotech ETFs also posted significant gains for the week.

The Global X MSCI Greece ETF GREK saw the biggest decline last week, followed by cannabis ETFs YOLO and TOKE.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Interesting trend as two inflation hedged ETFs LQDI and IVOL led fixed income ETF returns for last week.

The long LIBOR ETN ULBR saw the worst fixed income ETF performance.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

IVV and IWM led equity inflows, while QQQ saw a billion in outflows.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflows

Bond index ETF AGG led inflows for last week, followed by high yield bond ETF JNK.

Intermediate-term Treasury bond ETF IEF had the largest outflows, followed by iShares Preferred and Income Securities ETF PFF.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm.

ETF NameTicker%Diff.
iShares Commodities Select Strategy ETFCOMT355%
iShares iBonds Dec 2025 Term Corporate ETFIBDQ268%
Goldman Sachs ActiveBeta International Equity ETFGSIE226%
FlexShares Quality Dividend Index FundQDF224%
iShares MSCI France ETFEWQ223%
iShares Core MSCI Pacific ETFIPAC218%
SPDR Nuveen Bloomberg Barclays High Yield Municipal Bond ETFHYMB213%
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETFPDBC213%
Xtrackers MSCI Europe Hedged Equity ETFDBEU209%
Invesco Dynamic Large Cap Value ETFPWV208%

Industry Changes

Launches

  • Innovator S&P 500 Ultra Buffer ETF – December UDEC, 79bps
  • Timothy Plan’s rolls out US small Cap and international ETFs.
    • Timothy Plan US Small Cap Core ETF TPSC, 52bps
    • Timothy Plan International ETF TPIF, 62bps
  • North Shore Global Uranium Mining ETF URNM, 85bps
  • JPMorgan BetaBuilders International Equity ETF BBIN, 7bps
  • First Trust launches Active Factor ETF suite with a small cap, mid cap, and large cap product
    • First Trust Active Factor Small Cap ETF AFSM, 75bps
    • First Trust Active Factor Mid Cap ETF AFMC, 65bps
    • First Trust Active Factor Large Cap ETF AFLC, 55bps

Filings

  • Syntax Stratified U.S. Equities ETF, which invests in ETFs or underlying securities that provide Stratified Weight exposure to companies in the S&P Composite 1500 index.
  • Hartford filed for a new fixed income ETF, the Hartford Core Bond ETF.

Expense Ratio Changes

  • Franklin Liberty International Opportunities ETF FLIO, 60-65bps

Other Changes

  • The VanEck Vectors High Income MLP ETF YMLP, tracking the Solactive High Income MLP Index has changed names and is now the VanEck Vectors Energy Income ETF EINC, 45bps.
ETF Market Weekly Update

WEEKLY UPDATE 11/29

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US Equities hit another all time high last week on continued trade deal optimism, but fixed incomes moved little during the short trading week.

European equities drew higher, and the pound rose against the US Dollar as the conservative party seems likely to win the parliament majority in the upcoming UK elections.

Asian markets also performed well on the trade deal optimism, but chinese equities fell as the US legislation supporting Hong Kong protesters complicated negotiations.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

Last week, the Virtus Biotech ETF BBC led equity returns followed by a majority of precious metals ETFs and an additional biotech ETF GNOM from Global X.

The iShares MSCI Chile ETF ECH saw the worst equity performance due to the political volatility seen recently. MLPs also saw poor performance last week.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

The VelocityShares Long LIBOR ETN ULBR led fixed income returns, and high yield corporate bond ETFs also seemed to perform well overall for the week.

International bond fund IPFF had the worst performance for the week, followed by emerging markets bond fund FEMB.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

SPY saw massive inflows last week, followed by IWM and QQQ. Two small cap ETFs (IJR & SCZ) also made the top inflows list.

The minimum volatility factor ETF USMV saw the largest outflows last week, followed by quality factor fund QUAL.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflows

The iShares US and International Aggregate bond funds AGG and IAGG led fixed income flows. Vanguards international index ETF BNDX also followed.

The iShares short term treasury ETFs SHV and SHY saw largest outflows for the fixed income category.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

Industry Changes

ETF NameTicker%Diff.
IQ 500 International ETFIQIN390%
Invesco BuyBack Achievers ETFPKW312%
iShares Core International Aggregate Bond ETFIAGG306%
iShares Core MSCI International Developed Markets ETFIDEV296%
FlexShares STOXX Global Broad Infrastructure Index FundNFRA274%
iShares U.S. Consumer Services ETFIYC254%
SPDR S&P 400 Mid Cap Value ETFMDYV239%
JPMorgan BetaBuilders Europe ETFBBEU238%
iShares Global Financials ETFIXG231%
iShares Global Energy ETFIXC217%

Launches

  • MicroSectors FANG+ ETN FNGS, 58bps
  • Innovator S&P 500 Ultra Buffer ETF – December UDEC
  • Innovator S&P 500 Buffer ETF – December BDEC
  • Innovator S&P 500 Power Buffer ETF – December PDEC
  • Timothy Plan International ETF TPIF   
  • Timothy Plan US Small Cap Core ETF TPSC

Expense Ratio Changes

  • Anfield Universal Fixed Income ETF AFIF, 100-132bps
  • Virtus Newfleet Dynamic Credit ETF BLHY, 68-69bps
  • Fidelity MSCI Energy Index ETF FENY, 8-8.4bps
  • Hartford Short Duration ETF HSRT, 32-30bps
  • Invesco BLDRS Developed Markets 100 ADR Index Fund ADRD, 30-27bps
  • Arrow DWA Country Rotation ETF DWCR, 134-95bps
  • Arrow DWA Tactical ETF DWAT, 170-169bps
  • Arrow Dogs of the World ETF DOGS, 164-134bps

ETF Market Weekly Update

WEEKLY UPDATE 11/22

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US equities declined slightly after six weeks of gains, and volatility remained low. US bond markets were affected by uncertainty over the US-China trade deal, and longer term bond yields fell for the week.

The trade uncertainties carried over to Europe, and European equity indices felt the squeeze.

In China, equities fell as US brought about legislation in support of Hong Kong protesters ahead of the potential trade talks.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

The Reality Shares DFND, which has a unique forward-looking dividend rating system, led equity returns for the week. Cannabis ETFs made a pretty big comeback last week as well.

Precious metals and semiconductors posted the biggest declines for last week, led by SILJ and FTXL.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Long term treasury ETFs led fixed income again last week, led by ZROZ for the second week in a row.

High Yield bonds and emerging markets were last week’s losing trends.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

SPY saw the largest equity inflows, followed by iShares EDGE MSCI products USMV and QUAL.

QQQ saw the largest outflows for last week, followed by IWM.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflows

Mid-term Treasury bond ETF IEF led fixed income flows for the week, followed by 1-5 year corporate bond ETF ISTB.

Short Treasury bond ETF SHV saw the largest outflows, followed by high yield bond ETFs JNK and HYG.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker% Diff.
Invesco BuyBack Achievers ETFPKW307%
iShares Core International Aggregate Bond ETFIAGG300%
WisdomTree Emerging Markets ex-State-Owned Enterprises FundXSOE287%
FlexShares STOXX Global Broad Infrastructure Index FundNFRA283%
iShares U.S. Consumer Services ETFIYC267%
Vanguard Mega Cap ETFMGC211%
Vanguard Extended Market ETFVXF208%
iShares International Treasury Bond ETFIGOV198%
JPMorgan BetaBuilders Europe ETFBBEU194%
Xtrackers USD High Yield Corporate Bond ETFHYLB190%

Industry Changes

Launches

  • FT Cboe Vest U.S. Equity Buffer ETF – November FNOV, 85bps
  • FT Cboe Vest U.S. Equity Deep Buffer ETF – November DNOV, 85bps
  • AAM Low Duration Preferred and Income Securities ETF PFLD, 45bps

Filings

  • Armor Emerging Markets Equity Index ETF
  • Armor International Equity Index ETF
  • Armor US Equity Index ETF

Expense Ratio Changes

  • Global X E-commerce ETF EBIZ, 68→50bps
  •  iShares MSCI EAFE ETF EFA, 31→32bps
  •  iShares MSCI ACWI ETF ACWI, 31→32bps
  •  iShares MSCI EAFE Small-Cap ETF SCZ, 39→40bps
  • iShares MSCI EAFE Value ETF EFV, 38→39bps
  • iShares MSCI ACWI ex U.S. ETF ACWX, 31→32bps
  • iShares MSCI All Country Asia ex Japan ETF AAXJ, 67-68bps
  • iShares Currency Hedged MSCI ACWI ex U.S. ETF HAWX, 34-35bps
  • iShares Currency Hedged MSCI EAFE Small-Cap ETF HSCZ, 42-43bps
  • Legg Mason Small-Cap Quality Value ETF SQLV, 60-62bps
  • iShares Adaptive Currency Hedged MSCI EAFE ETF DEFA, 34-35bps
ETF Market Weekly Update

WEEKLY UPDATE 11/15

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US equities continued their climb last week despite overall mixed economic data. With all of the political volitility we’ve seen, there has been almost no fluctuation in market volatility. In fact, equity markets have seen the calmest month since August 2018.

US Treasury bonds fell from their three-month highs over concerns about the stalling of the US-China trade deal.

Eurozone GDP data was much stronger than originally predicted, and data out of Germany showed that the country had just narrowly missed a recession in the third quarter.

In Asia, Chinese stocks slumped on weak economic data and Japan posted slight losses for the week.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

Nigerian equities have been rallying around regulatory changes in the country, which led to the Global X MSCI Nigeria ETF NGE topping equity performers for last week.

Health care related ETFs were also a winning trend last week, with 7 out of the 10 names having high exposure to the sector.

Cannabis ETFs dropped steeply last week, as most marijuana companies have reported lower than expected earnings this quarter.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Long term treasury ETFs led fixed income last week, led by ZROZ.

Emerging markets bonds were a losing category in fixed income ETFs with 5 names.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

Interesting top inflows winner last week with SIZE, a unique ETF with a focus on investing in smaller-than-average market capitalizations.

SPY continued to suffer outflows last week, and was followed by Utilities select sector SPDR fund XLU.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflows

Bond index funds BND and AGG led fixed income inflows, followed by iShares National Muni Bond ETF MUB.

US corporate bond ETFs LQD, VCIT, and SPIB bottomed out on the list with the largest outflows last week.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker% Diff.
iShares Edge MSCI U.S.A. Size Factor ETFSIZE382%
Nuveen Enhanced Yield U.S. Aggregate Bond ETFNUAG382%
iShares Government/Credit Bond ETFGBF371%
JPMorgan BetaBuilders MSCI U.S. REIT ETFBBRE360%
IQ Ultra Short Duration ETFULTR354%
SPDR Portfolio Europe ETFSPEU334%
Fidelity Limited Term Bond ETFFLTB299%
Tortoise North American Pipeline FundTPYP298%
iShares Agency Bond ETFAGZ272%
iShares U.S. Utilities ETFIDU256%

Industry Changes

Launches

  • ProShares S&P Technology Dividend Aristocrats ETF TDV, 45bps
  • WisdomTree Mortgage Plus Bond Fund MTGP, 45bps
  • Defiance Next Gen Food & Agriculture ETF DIET, 30bps

Closings

Filings

  • iShares ESG MSCI EM Leaders ETF 

Expense Ratio Changes

  • Invesco BLDRS Emerging Markets 50 ADR Index Fund ADRE, 30→18bps
  • United States Copper Index Fund CPER 79.5→80bps
  • ProShares Ultra Euro ULE 101→95bps
  • Ideanomics NextGen Vehicles & Technology ETF EKAR, 95→65bps

ESPORTS ETFS: WHY AREN’T INVESTORS PICKING UP THE CONTROLLER?

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Last week the ETF industry saw another video game thematic ETF, the Global X Video Games & Esports ETF HERO, join the melee. The launch of HERO marks the second ETF launch in this category in 2019 and the fifth video game ETF to enter the US market. But while the video game ETF competition is heating up faster than a Mario Kart competition, overall investor reception to these names has been glitchy. Between all five ETFs (VIDG, GAMR, ESPO, NERD and HERO) there is only a total of $140M in AUM. The table below aggregates flow data for VIDG, GAMR, ESPO, NERD and HERO. In total, these ETFs have only gathered $24.9M inflows so far this year. In comparison, the 6 ETFs ETFLogic has identified in the marijuana investment theme have amassed $617.3M in flows YTD. 

Net Flows – YTD$24.9M
Net Flows – 3mo$13.2M
Net Flows -6mo$16.9M

Flows as of 2019.11.11

There are no cheat codes to gathering assets under management (AUM), and major institutions aren’t keen on plugging in when it comes to betting on the future of the entertainment industry. But for thematic products, ETFs issuers often rely on the interest of retail investors anyways. So what exactly is holding back retail investors from picking up the controller?

It feels like the majority of investors – even traditional sports fanatics – might not fully understand the phenomenon that is esports and the meteoric rise it has seen in the past few years. SNL perfectly summed up this sentiment with Chance the Rapper’s latest skit appearance.

Here’s some data to prove that this goes beyond just a passing trend. Market intelligence firm newzoo estimates that the total video games market will reach $152 Billion dollars in 2019, with an 11% year over year growth from 2012. This is driven by the increase in live streaming content – which has rapidly taken over as one of the most consumed forms of online content in the world. To give you an idea how popular, Twitch (the leading video game live-streaming website) is the 40thmost popular website in the entire world*, beating out even the most popular adult website. Total esports viewership reached 380M in 2018, and is expected to see a 14% growth in viewership in 2019. An interesting datapoint from newzoo suggested that 56% of US Gen Z men (ages 13-21) said nontraditional sports are more relevant to their generation, compared to 44% who said the same for traditional sports. 

*Per Alexa Global web rankings 

All of these statistics have already caught the eyes of private investors, who invested an estimated $4.5B in video games and esports in 2018. Similar to traditional sports, there is significant revenue tied to esports sponsorships, media rights, advertising, merchandising, and publisher fees. While your average investor doesn’t have access to the same private investment opportunities, these video game thematic ETFs offer similar exposure to public companies involved in the industry.

Another theory is that those with a passion for the esports industry are simply too young, and don’t have either the ability or desire to invest in these ETFs. With the overwhelming majority of esports viewers being young males, they just might not have access or interest in investing to begin with. 

Could lack of investor interest be due to fear of regulatory crackdown? Earlier this year the White House Administration pointed a finger at violent video games as a major cause of the mass shootings epidemic in the US and even threatened to impose regulations on the industry. Touching back on the marijuana thematic ETF comparison, he marijuana industry is incredibly tied up in regulatory red tape from multiple government bodies, and by that argument there should be even less interest in marijuana ETFs compared to video games. But strong inflows into marijuana-focused funds speaks for itself. 

Whatever the reason is for the lack of investor interest, ETF issuers have clearly noticed the industry’s growth and are working to put products on the market that offer this unique and diversified exposure. Hopefully investors will level up before these ETFs run out of lives.

Bonus: Comparison of NERD, GAMR, HERO, ESPO

Below is outlined some basic data on the 5 thematic ETFs in the table below from our free market data tool. I’ve left out trading and performance numbers to provide the most unbiased view on the ETFs, but you can access the full comparison here. ETFLogic also has more comprehensive tools on the Insights platform, which you can contact sales@etflogic.io to gain access to.

TickerNERDGAMRHEROESPOVIDG
IssuerRoundhill InvestmentsETF Managers GroupGlobal XVan EckDefiance
Expense Ratio0.25%0.75%0.50%0.55%0.30%
Inception Date6/4/193/8/1610/25/1910/16/188/1/18
# Constituents2585402747
Top 10 Weight52.94%28.89%54.86%61.26%43.73%

ETF Market Weekly Update

WEEKLY UPDATE 11/8

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Major indices hit record high territory last week as investor hopes ran high of a phase one US-China trade deal. Recession fears continued to diminish, despite continued mixed economic signals, and bond yields hit the highest level since July.

The US market rally and trade optimism carried itself over to European equity markets, although the IMF cut its eurozone growth forecast for 2019 from 1.3% to 1.2%.

Japanese markets experienced only 4 days of trading due to Culture Day on Monday, but similarly rallied around positive advancements in US-China trade negotiations.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

The NA Tech-Multimedia Networking ETF IGN led equity returns last week, followed by the actively managed AdvisorShares Pure Cannabis ETF YOLO.

Cannabis (YOLO & CNBS) was among a number of interesting winning trends, which included basic materials (PSCM, COPX, & PYZ), small caps (PSCM & BUY), healthcare (IHF), and aerospace and defence (XAR). It’s also notable that the Principal Contrarian Value Index ETF PVAL made the list, and is yet another example of the value resurgence.

Precious metals continued their decline as trade optimism continued to grow. Brazilian equities saw a steep decline after a disappointing round of oil auctions last week, leading EWZS and BRF to make the list of worst equity ETF performers.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

ULBR continued its rally this month, as overall concerns of a global economic recession have been diminishing.

Long term treasury ETFs were last week’s biggest losing trend as Treasury bond yields hit new highs, led by ZROZ and EDV.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

QQQ led equity inflows again last week, and ex-US and Canada international ETF IEFA also saw major inflows of $1.1B. The Utilities, Financials, and Consumer Discretionary Select Sector SPDRs all had significant inflows for the week.

Money continued to flow out of SPY last week, whos outflows far out shadowed other equity outflows for the week.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflowss

Emerging Markets Bond ETF EMB led fixed income inflows with $292.4M, and as a category Emerging market ETFs saw significant inflows across the board last week.

The majority of outflows were from Treasury related ETFs, led by iShares 20+ year and 7-10 year Treasury ETFs TLT and IEF.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker% Diff.
Schwab 5-10 Year Corporate Bond ETFSCHI382%
First Trust Dorsey Wright Momentum & Low Volatility ETFDVOL311%
Aberdeen Standard Physical Swiss Gold Shares ETFSGOL309%
Invesco DWA Utilities Momentum ETFPUI308%
iShares Morningstar Mid-Cap Growth ETFJKH303%
First Trust Nasdaq-100 Equal Weighted Index FundQQEW301%
Fidelity MSCI Consumer Staples Index ETFFSTA277%
iShares Core MSCI Europe ETFIEUR264%
Invesco Variable Rate Preferred ETFVRP259%
SPDR MSCI ACWI ex-US ETFCWI256%

Industry Changes

Launches

  • Innovator S&P 500 Power Buffer ETF – November PNOV, 79bps
  • ETRACS 2x Monthly Leveraged Wells Fargo Diversified Business Development Company Index ETN Series B BDCY, 165bps
  • ETRACS Bloomberg Commodity Index Total Return ETN Series B DJCB, 50bps
  • ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN Series B CEFZ, 90bps
  • Innovator S&P 500 Buffer ETF – November BNOV, 79bps
  • Innovator S&P 500 Ultra Buffer ETF – November UNOV, 79bps
  • Strategy Shares Newfound/ReSolve Robust Momentum ETF ROMO, 87bps
  • Hartford Multifactor Small Cap ETF ROSC, 39bps
  • Hartford Multifactor Diversified International ETF RODE, 29bps
  • iPath Series B Carbon ETN GRN, 75bps
  • ProShares Russell U.S. Dividend Growers ETF TMDV, 35bps
  • FT Cboe Vest U.S. Equity Buffer ETF – August FAUG, 85bps
  • FT Cboe Vest U.S. Equity Deep Buffer ETF – August DAUG, 85bps
  • Direxion Daily Dow Jones Internet Bear 3X Shares WEBS, 107bps
  • Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL, 112bps
  • Fidelity Stocks for Inflation ETF FCPI, 29bps
  • Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS, 107bps
  • Global X Cybersecurity ETF BUG, 50bps

Filings

  • Trajan Wealth Income Opportunities ETF
  • Direxion MSCI USA ESG Universal Movers versus Laggards ETF
  • Direxion S&P 500® High Quality versus Low Quality ETF
  • Direxion Flight to Safety ETF

Expense Ratio Changes

  • PIMCO Enhanced Short Maturity Active ETF MINT, 35-36bps
  • PIMCO Active Bond ETF BOND, 55-56bps                             
  • PIMCO 0-5 Year High Yield Corporate Bond Index ETF HYS, 55-56bps
  • PIMCO Enhanced Low Duration Active ETF LDUR, 102-79bps         
  • AdvisorShares Sage Core Reserves ETF HOLD, 204-35bps   
  • UVA Unconstrained Medium-Term Fixed Income ETF FFIU, 46-51bps
  • AdvisorShares STAR Global Buy-Write ETF VEGA, 35-204bps
  • Vaneck Vectors Municipal Allocation ETF MAAX, 36-38bps
  • WBI BullBear Trend Switch U.S. 3000 Total Return ETF WBIT, 68-67bps
ETF Market Weekly Update

WEEKLY UPDATE 11/1

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US equity markets climbed as more jobs were added than expected in October and the busiest week of earnings came to a close with a majority of S&P 500 companies beating analyst estimates.

The Federal Reserve cut interest rates for the third time this year, but signaled there would be no additional cuts in order to assess current economic conditions.

European stocks reached 22-month highs after the Brexit deadline was pushed back. European equities inflows outpaced US equities for the week (ended the 30th as UK markets were closed for All Saints Day on Nov 1).

In Japan, the BOJ announced there would be no rate cut, and the Nikkei 225 gained 51 points by the close of markets Friday.

Despite continued trade deal concerns, Chinese equities also climbed among strong manufacturing data and positive earnings.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

Precious metals lead equity ETF performance for the second week in a row, led by SLVP and GDXJ.

Also notable is the Virtus LifeSci Biotech Clinical Trials ETF BBC. Over the past month, BBC has climbed from $23.16 to $27.46, driven by major price-spiking announcements from it’s highest weighted constituents Reata Pharmaceuticals RETA, Achillion Pharmaceuticals ACHN, and Ra Pharmaceuticals RARX.

Online retail ETFs IBUY and ONLN saw the worst performance last week. SPDR S&P Internet ETF XWEB also fell, making internet-related ETFs a losing category. Cannabis similarly saw poor performance last week.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Long-term treasury ETFs led fixed income ETF returns as the Federal Reserve cut interest rates.

International Preferred stock ETF IPFF dropped two and a half percent last week, and a number of high yield bond ETFs fell slightly.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

With stock market highs, QQQ and VTI saw major inflows. Positive financials earnings also boosted inflows into financial select sector SPDR XLF.

Inflows into the Vanguard Value ETF VTV reflected increasing investor sentiment around value ETFs recently.

SPY saw a massive $3.6B outflow last week, continuing a streak of decreasing AUM over the past six months.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflowss

iShares Mortgage-backed securities ETF MBB led inflows for the week. The Vanguard International and US fixed income index ETFs BNDX and BND also saw significant inflows.

LQD saw over $686M in outflows, and over the past month the ETF has lost $1.8B.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker% Diff.
SPDR SSGA Gender Diversity Index ETFSHE359%
SPDR S&P 400 Mid Cap Value ETFMDYV331%
iShares Core MSCI International Developed Markets ETFIDEV313%
ARK Web x.0 ETFARKW299%
iShares U.S. Financials ETFIYF226%
VelocityShares 3X Inverse Natural Gas ETNDGAZ213%
WisdomTree Yield Enhanced U.S. Aggregate Bond FundAGGY204%
iShares J.P. Morgan EM Local Currency Bond ETFLEMB202%
ETFMG Prime Mobile Payments ETFIPAY193%
Vanguard Health Care ETFVHT193%

Industry Updates

Launches

  • Global X Thematic Growth ETF GXTG, 50bps
  • Global X Video Games & Esports ETF HERO, 50bps

Filings

  • Syntax Stratified MidCap ETF
  • Syntax Stratified SmallCap ETF
  • iShares launches 9 new iBonds Term Treasury ETFs for terms ending Dec 2021-Dec 2029
  • Collaborative Investment Series Trust files for 6 ETFs
    • Trend Aggregation U.S. Equity ETF
    • Trend Aggregation ESG ETF
    • Trend Aggregation Managed Futures ETF
    • Trend Aggregation Dividend Stock ETF
    • Trend Aggregation Aggressive Growth ETF
    • Trend Aggregation Cannabis ETF

Closings

  • DWS is set to close 5 Xtrackers ETFs
    • Xtrackers MSCI South Korea Hedged Equity ETF DBKO
    • Xtrackers FTSE Emerging Comprehensive Factor ETF DEMG
    • Xtrackers Russell 2000 Comprehensive Factor ETF DESC
    • Xtrackers Barclays International Corporate Bond Hedged ETF IFIX
    • Xtrackers Barclays International Treasury Bond Hedged ETF IGVT

Expense Ratio Changes

  • SSgA updated expense ratios on 5 ETFs
    • SPDR MFS Systematic Growth Equity ETF SYG, 61→60bps
    • SPDR S&P 1500 Value Tilt ETF VLU, 13→12bps
    • SPDR S&P Kensho Future Security ETF FITE, 46→45bps
    • SPDR S&P Kensho Intelligent Structures ETF SIMS, 46→45bps
    • SPDR S&P Kensho Smart Mobility ETF HAIL, 46→45bps
  • AGFiQ Changed increased expense ratios on 5 ETFs
    • AGFiQ U.S. Market Neutral Anti-Beta Fund BTAL, 76→211bps
    • AGFiQ Hedged Dividend Income Fund DIVA, 75→110bps
    • AGFiQ Dynamic Hedged U.S. Equity ETF USHG, 55→87bps
    • AGFiQ U.S. Market Neutral Momentum Fund MOM, 188→262bps
    • AGFiQ U.S. Market Neutral Value Fund CHEP, 112→191bps
  • AdvisorShares changed the expense ratios of their entire ETF lineup
    • AdvisorShares Ranger Equity Bear ETF HDGE, 272→312bps
    • AdvisorShares Sage Core Reserves ETF HOLD, 35→104bps
    • AdvisorShares Dorsey Wright ADR ETF AADR, 88→110bps
    • AdvisorShares Newfleet Multi-Sector Income ETF MINC, 69→76bps
    • AdvisorShares DoubleLine Value Equity ETF DBLV, 90→91bps
    • AdvisorShares Dorsey Wright Short ETF DWSH, 99→307bps
    • AdvisorShares Pacific Asset Enhanced Floating Rate ETF FLRT, 114→113bps
    • AdvisorShares Focused Equity ETF CWS, 68→85bps
    • AdvisorShares STAR Global Buy-Write ETF VEGA, 206→35bps
    • AdvisorShares Vice ETF ACT, 75→99bps
    • AdvisorShares FolioBeyond Smart Core Bond ETF FWDB, 141→131bps
    • AdvisorShares Dorsey Wright Micro-Cap ETF DWMC, 99→125bps
  • Cohen & Steers Global Realty Majors ETF GRI, 55→35bps
  • VictoryShares Emerging Market High Div Volatility Wtd ETF CEY, 50→51bps
  •  GraniteShares HIPS U.S. High Income ETF HIPS, 130→127bps
  • WBI increased expense ratio on two ETFs
    • WBI BullBear Global Income ETF WBII, 128→129bps
    • WBI BullBear Quality 3000 ETF WBIL, 107→121bps
ETF Market Weekly Update

WEEKLY UPDATE 10/25

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The week ended strong as US third-quarter earnings faired much better than expected, with 79% of the 189 companies reported so far beating estimated earnings, and 48% beating estimated revenue.

Across the pond, the EU pushed back a Brexit deadline by three weeks and Johnson lost the vote to call a general election. This coupled with mixed corporate earnings held back European equities.

Reports have also circulated that the US and China are nearing the finalization of sections of the trade agreement, which helped to boost international equities across the globe. With increasing investor sentiment, international equities have managed to outperform US equities so far this month.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

Despite strong corporate US earnings, precious metals and natural gas ETFs took the lead in equity returns for last week. The First Trust Nasdaq Semiconductor ETF FTXL also performed well, undoubtedly influenced by the US-China reports.

The Global X Social Media ETF SOCL also took a hit. With Twitter at a 9.22% weighting, their missed earnings report and 20% tumble last week really hurt SOCL‘s overall performance*.

*via our Performance Attribution tool

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Overall, performance increases in the fixed income space were minimal, yet emerging market bond ETFs seemed to be a winning category with EMLC, ELD, EBND, and EMHY all placing in the top 10.

2-year US Treasury ETF DTUL fell 1.2%, and 3 other international Treasury ETFs saw poor performance as well.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

SPY saw a $684M inflow last week, yet overall the most famous ETF has lost $1.7B so far this month and $11B YTD.

ITOT and VTI also saw significant inflows potentially due to the higher-than expected earnings reports.

QQQ on the other hand saw a $1.2B outflow, followed by IVV.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflowss

Emerging markets ETF EMB led fixed income flows, while iShares long and intermediate-term Treasury bond ETFs TLT and IEI bottomed out.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker% Diff.
Franklin LibertyQ Emerging Markets ETFFLQE393%
American Century STOXX U.S. Quality Value ETFVALQ390%
American Century STOXX U.S. Quality Growth ETFQGRO388%
American Century Quality Diversified International ETFQINT386%
Aware Ultra-Short Duration Enhanced Income ETFAWTM385%
Avantis Emerging Markets Equity ETFAVEM358%
Avantis U.S. Equity ETFAVUS350%
Avantis International Equity ETFAVDE308%
Xtrackers MSCI Europe Hedged Equity ETFDBEU244%
iShares iBonds Dec 2020 Term Corporate ETFIBDL219%

Launches, Filings, Closings, and Other Changes

Launches

  • The Pacer Trendpilot US Bond ETF PTBD, 60bps
  • UBS launched 5 new ETRACS ETNs
    • ETRACS 2x Monthly Leveraged Wells Fargo Diversified Business Development Company Index ETN Series B BDCY,  85bps
    • ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN Series B CEFZ, 90bps
    • ETRACS Bloomberg Commodity Index Total Return ETN Series B DJCB, 50bps
    • ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B HDLB, 85bps
    • ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN Series B LMLB, 85bps

Filings

  • ETFMG Travel Tech ETF
  • LHA Market State Alpha Seeker ETF
  • Xtrackers MSCI Kokusai Equity ETF

Closings

  • 10/18: VanEck Vectors High Income Infrastructure MLP ETF, YMLI
  • 10/21: WisdomTree Global ex-Mexico Equity Fund, XMX
  • 10/22: Reality Shares Nasdaq NexGen Economy China ETF, BCNA
  • 10/22: Reality Shares Fundstrat DQM Long ETF, DQML
  • 11/18: DWS will close 5 of its Xtrackers ETFs
    • Xtrackers MSCI South Korea Hedged Equity ETF DBKO
    • Xtrackers FTSE Emerging Comprehensive Factor ETF DEMG
    • Xtrackers Russell 2000 Comprehensive Factor ETF DESC
    • Xtrackers Barclays International Corporate Bond Hedged ETF IFIX
    • Xtrackers Barclays International Treasury Bond Hedged ETF IGVT

Expense Ratio Changes

  •  Impact Shares YWCA Womens Empowerment ETF WOMN, 76→75bps
  • Impact Shares NAACP Minority Empowerment ETF NACP, 76→75bps
  • Impact Shares Sustainable Development Goals Global Equity ETF SDGA, 76→75bps
ETF Market Weekly Update

WEEKLY UPDATE 10/18

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US equities rose ever so slightly last week as earnings season kicked off, and fixed income flourished as the yield curve has returned to a more normalized level in recent weeks.

Globally, there was more confusion around Brexit and the IMF downgrading its outlook on global economic growth to 3%.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

After a nearly 50% decline over the past few months, the ETFMG Alternative Harvest ETF MJ bounced back up six and a half percent last week, followed by a majority of health care and marijuana-related ETFs.

Software-related ETFs were last weeks biggest losers, led by the Global X Cloud Computing ETF CLOU

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

International fixed income ETFs saw the best performance last week, stirred by the normalized yield curve.

On the other hand, long term US treasury ETFs saw the biggest decline, with ZROZ falling 2.2%.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

Equity inflows were all below the $1B level, and were led by major index ETFs QQQ, ITOT and DIA. The iShares MSCI Japan ETF EWJ also saw inflows while the Japanese Yen strengthened last week.

SPY and IVV bottomed out in equity flows, and Mid-Cap equity ETFs overall seemed to be a category losing money last week.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflowss

High yield bond ETFs HYG and JNK saw the largest dollar inflows , followed by broad fixed income index ETF BND.

Treasury ETFs saw the largest outflows, led by short-term treasury ETF SHV followed by long-term treasury ETFs EDV and TLT.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker% Diff.
Franklin Liberty Investment Grade Corporate ETFFLCO388%
VictoryShares USAA MSCI USA Small Cap Value Momentum ETFUSVM380%
iShares MSCI ACWI Low Carbon Target ETFCRBN265%
Invesco CurrencyShares British Pound Sterling TrustFXB213%
iShares ESG MSCI EAFE ETFESGD209%
JPMorgan Diversified Return International Equity ETFJPIN209%
Hartford Multifactor Developed Markets (ex-US) ETFRODM200%
iShares U.S. Consumer Services ETFIYC193%
Invesco FTSE RAFI U.S. 1500 Small-Mid ETFPRFZ180%
iShares MSCI Turkey ETFTUR170%

Launches, Filings, Closings, and Other Changes

Launches

  •  Merlyn.AI Bull-Rider Bear-Fighter ETF WIZ, 95bps

Filings

  • Franklin Disruptive Commerce ETF
  • Franklin Genomic Discovery ETF
  • Franklin Intelligent Machines ETF 
  • SmartETFs Marketing Technology ETF
  • First Trust Vivaldi Merger Arbitrage ETF

Closings

  • Reality Shares closes two ETF on Oct 22
    • Reality Shares Fundstrat DQM Long ETF DQML
    • Reality Shares Nasdaq NexGen Economy China ETF BCNA

Expense ratio changes

  • EventShares U.S. Legislative Opportunities ETF PLCY, 86 →75bps

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