No Tricks, Just Treats Last Week

Monday, November 4, 2019 - Good news all around as stock prices climbed 1.5% this past week, reaching fresh record highs. The climb was fueled by slowing but still-positive economic and corporate data beating market expectations. In addition, the Federal Reserve cut interest rates for the third time this year and alluded to a pause in lowering rates to consider economic conditions. Good news was also found in the October Jobs report. The U.S. economy added 128,000 jobs in October, well above the consensus estimate.


The large-cap S&P 500 Index and the technology-heavy Nasdaq Composite Index reached new intraday and closing highs this week, while the smaller-cap stocks remained some distance from their late-2018 peaks. Within the SPDR S&P 500 ETF (SPY), health care shares outperformed, helped by earnings beats from Merck (MRK) and Pfizer (PFE). Energy shares lagged as oil prices fell after some oversupply concerns. As to improved sentiment on Wall Street, the Cboe Volatility Index (VIX), the so-called fear gauge, touched a four-month low – another glimpse of good news.


ETFG Quant Movers – Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.


ETFG Quant Winners: The top five gainers in the ETFG Quant Total Score were First Trust Nasdaq Food & Beverage ETF (FTXG), KraneShares CICC China Leaders 100 Index ETF (KFYP), Schwab Fundamental U.S. Large Company Index (FNDX), iShares Russell Mid-Cap ETF (IWR) and Vanguard Small-Cap ETF (VB) respectively. Each ETP added well over 15% to their score as behavioral scores and global factors came into play.


ETFG Quant Losers: Honorable mentions in the loser category were WBI Power Factor High Dividend ETF (WBIY),            Global X US Preferred ETF (PFFD), VanEck Vectors Pharmaceutical ETF (PPH), Consumer Staples Select Sector SPDR Fund (XLP) and JPMorgan Diversified Return Emerging Markets Equity ETF (JPEM). The causes can be traced to fundamental and behavioral factors dipping slightly impacting the respective total ETFG Quant scores.


ETFG Weekly Select List - The five most highly rated ETFs per Sector, Geographic Region and Strategy as ranked by the ETFG Quant model.


Considering the sector’s success, we’d like to highlight the top ETFs within the health care sector in this week’s Select List. iShares Nasdaq Biotechnology ETF (IBB) held onto the 1st place position followed by iShares Global Healthcare ETF (IXJ) in 2nd and VanEck Vectors Biotech ETF (BBH) in 3rd place. Followed by newcomers to this week’s select list, SPDR S&P Pharmaceuticals ETF (XPH) and Invesco Dynamic Pharmaceuticals ETF (PJP) claiming the 4th and 5th spot respectively.