ETFLogic Weekly Update 3/29

Welcome to ETFLogic’s Weekly Newsletter.

We look back at last week’s flows, provide details on new ETF launches and include a timely data point or tool from the ETFLogicInsights Platform.

Thanks to everyone who participated in our ETF BracketoLogic competition! With the Final Four upon us, here’s a quick update for those of you not in on the action:

Other than BracketoLogic March Madness, here is what happened in ETF land last week. 

  • The only ETFLogic pair “Team & selected ETF” left standing is Texas Tech and OIH (VanEck’s Vector Oil Services ETF).  + 3 points
  • The ETFs that are still in the game but their b-ball team pair did not advance are: + 2 points
    • JHMT (John Hancock Multifactor Technology ETF) (Virginia Tech)
    • SCHH (Schwab U.S. REIT ETF) (Purdue)
    • XAR (SPDR S&P Aerospace & Defense ETF) (Houston) 
  • The b-ball teams still in the game but their ETF pair did not advance are: + 1 point
    • Michigan State QVM
    • Virginia CWS
    • Auburn CSB 

One Week Trends

Investors are rallying around strong Chinese manufacturing data, and we can assume investors are shrugging off worries of a global economic slowdown due to the major outflows from precious metal and gold ETFs.

China was the clear winner in returns this week, with VanEck Vectors China AMC SME-ChiNext CNXT, VanEck Vectors ChinaAMC CSI 300 PEK, CSOP FTSE China A50 AFTY, Xtrackers Harvest CSI 300 China A-Shares ASHR, KraneShares Bosera MSCI China A Share KBA, iShares MSCI China A CNYA, KraneShares CSI China Internet KWEB, SPDR MSCI China A Shares IMI XINA, and KraneShares MSCI All China Health Care Index KURE and Invesco Golden Dragon China PGJ being all China names.

Precious metals the clear loser, with all bottom 10 returns to Global X Silver Miners SIL, VanEck Vectors Gold Miners GDX, U.S. Global GO Gold and Prec. Metal Miners GOAU, iShares MSCI Global Gold Miners RING, iShares MSCI Global Silver Miners SLVP, VanEck Vectors Junior Gold Miners GDXJ, Global X Gold Explorers GOEX, Sprott Gold Miners SGDM, ETFMG Prime Junior Silver SILJ, Sprott Junior Gold Miners SGDJ.

Last week VelocityShares Long LIBOR ULBR took the top spot with a 5.8% return.

Preferred stock names Virtus InfraCap U.S. Preferred Stock PFFAInvesco Preferred PGX, SPDR Wells Fargo Preferred Stock PSKVanEck Vectors Preferred Securities ex Financials PFXF, iShares Preferred and Income Securities PFF, and Invesco Variable Rate Preferred VRP also performed well last week.

iShares Interest Rate Hedged Emerging Markets Bond EMBH also posted positive returns of 0.92% as investor sentiment is rising for emerging markets, as of late.

High Yield was also a big winner last week: iShares Interest Rate Hedged High Yield Bond HYGHXtrackers High Beta High Yield Bond HYUPFidelity High Yield Factor FDHY, and WisdomTree Negative Duration High Yield Bond Fund HYND. 

International Treasury Bond ETFs were among the worst performers last week: SOVB, WIP, BWX, IGOV and ISHG.   Maybe a negative sentiment still remains around a potential global economic slowdown, regardless of the healthy manufacturing out of China?

Inflows led by the Technology Select Sector SPDR Fund XLK, followed by iShares Core MSCI EAFE IEFA and iShares Edge MSCI Min Vol U.S.A. USMV. Vanguard Total Stock Market VTI and iShares Russell 2000 IWM with major inflows last week as last week closed out the best quarter for stocks in nearly a decade.

iShares MSCI Japan EWJ also an interesting top inflow given the massive -$2.4B outflows its seen YTD.

Energy Select Sector SPDR Fund XLE made top inflows despite having -1.5B outflow YTD. Outflows dominated by Invesco QQQ Trust QQQ with -$1.9B, followed by -$1.2B from Financial Select Sector SPDR Fund XLF.

Outflows from ETF SPDR S&P Retail XRT and Consumer Staples Select Sector SPDR Fund XLP also follow with the recent trend of investors taking money out of consumer cyclicals as of late.

Top inflows into iShares HYG for the second week running, followed by two iShares short term bond names, iShares Short Maturity Bond NEAR and iShares Short-Term Corporate Bond IGSB.

Treasury Bond ETFs (short and long term duration) included in both the top of inflows and outflows. Inflows to iShares 1-3 Year Treasury Bond SHY, iShares 7-10 Year Treasury Bond IEF, SPDR Bloomberg Barclays 1-3 Month T-Bill BIL & outflows to iShares Short Treasury Bond SHV, iShares 20+ Year Treasury Bond TLT

Outflows were also dominated by Senior Loan ETFs Invesco Senior Loan BKLN, SPDR Blackstone / GSO Senior Loan SRLN, Highland iBoxx Senior Loan SNLN, with the majority coming out of Invesco’s BKLN.

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 Name    Ticker  % diff
iShares Commodities Select Strategy ETFCOMT237.15%
Invesco Russell 1000 Equal Weight ETFEQAL232.07%
Invesco BuyBack Achievers ETFPKW231.20%
Invesco S&P 500 Equal Weight Industrials ETFRGI211.63%
SPDR S&P 400 Mid Cap Value ETFMDYV183.69%
Oppenheimer S&P 500 Revenue ETFRWL137.94%
Vanguard S&P Mid-Cap 400 ETFIVOO132.11%
iShares MSCI Turkey ETFTUR122.94%
Xtrackers MSCI All China Equity ETFCN121.44%
JPMorgan BetaBuilders Europe ETFBBEU96.08%

New  Launches, Filings, Closings and Changes 

New Launches:

  • Innovator ETFs launched its final set of ETFs offering buffered exposure to the S&P 500 Index as part of its Defined Outcome ETF family.  Each provides limited exposure to the performance of the S&P 500 for one year, resetting on April 1, 2020
    • Innovator S&P 500 Buffer ETF – April, BAPR – protects against the first 9% of losses
    • Innovator S&P 500 Power Buffer ETF – April, PAPR– protects against losses up to 15%
    • Innovator S&P 500 Ultra Buffer ETF – April, UAPR – protects against losses greater than 5% but less than 35%

New Filings

  • Granite Shares filed for two ETFs
    • The GraniteShares Battery and Miners ETF, POWR
    • The GraniteShares Junior Tech Mega Trends ETF, MEGA

Closings

  • Deutsche Bank plans to delist 12 of its 16 ETNs as of April 11
    • DB Agriculture Double Long ETN DAG
    • DB Agriculture Long ETN AGF
    • DB Base Metals Double Short ETN BOM
    • DB Base Metals Double Long ETN BDD
    • DB Base Metals Short ETN BOS
    • DB Commodity Double Long ETN DYY
    • DB Commodity Short ETN DDP
    • DB Crude Oil Long ETN   SZO
    • DB Crude Oil Short ETN OLO
    • Elements Dogs of the DOW Dow Jones High Yield Select 10 Total Return ETN DOD
    • Elements Morningstar Wide Moat Focus Total Return Index ETN WMW
    • FI Enhanced Global High Yield ETN FIEG