WEEKLY UPDATE 11/8

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