WEEKLY UPDATE 10/25

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