ETF Action: Research

1.21.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: On Thursday, U.S. markets slipped for the third consecutive session amid a slew of macroeconomic data and earnings releases. Jobless claims were well above consensus estimates, the Philadelphia Federal Reserve’s manufacturing index indicated businesses continued to grow despite Omicron related labor and supply shortages, and existing home sales decreased 4.6% in December, but 2021 sales increased 8.5% from the prior year. After rising early in the day, QQQ dropped another 1.30%, SPY fell 1.11%, and DIA declined 86 bps. S&P 500 Pure Growth (RPG) continued its downward trend falling 1.84%. Year-to-date, RPG is down 13.14%. Emerging Markets (EEM) added 59 bps as Chinese markets (MCHI) jumped 2.60% on the day
• Sectors: Consumer Discretionary (XLY, -1.82%), Materials (XLB, -1.45%), and Technology (XLK, -1.29%) Industrials (XLI, -1.28%) were the laggards yesterday while Utilities (XLU, +13 bps) was the only sector the post gains. Industry wise, Metals & Mining (XME), Oil & Gas Exploration & Production (XOP), Retail (XRT), and Semiconductors (XSD) all declined over 3%. XRT is in oversold territory and has fallen over 13% thus far in 2022. 

   

• Themes: Majority of global thematic segments were lower yesterday, Biotech (SBIO) fell 2.46% and is down nearly 24% in the last 3 months. Evolving Consumer ETFs saw wide disparity in performance on Thursday as the KraneShares CSI China Internet ETF (KWEB) climbed 4.27% while the AdvisorShares Pure US Cannabis ETF (MSOS) plunged 4.97%. Emerging Markets Internet & Ecommerce ETF (EMQQ) and the KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ) each gained over 2.5% on strength from Emerging Markets and China
• Commodities & Yields: The U.S. Dollar (UUP) was up 31 bps while Broad Commodities (DJP) were relatively flat. Natural Gas (UNG) fell 4.61% and WTI Crude Oil (USO) dropped 64 bps. U.S. Aggregate Bonds (AGG) were higher by just 5 bps and TIPS Bonds (TIP) were up 12 bps. The U.S. 10-Year Treasury Yield fell slightly and settled around 1.82%

1.20.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: For the second consecutive day, U.S. markets fell as bond yields continue to rise ahead of the eventual policy tightening by the U.S. Federal Reserve. DIA declined 99 bps, SPY dropped 1.04%, and tech-heavy QQQ was down 1.10%. S&P 500 Pure Value (RPV) underperformed, falling 1.65% while S&P 500 Pure Growth (RPG) was also lower by 1.50% 
• Sectors: The defensive Consumer Staples (XLP, +63 bps) and Utilities (XLU, +45 bps) were the only sectors in positive territory yesterday. Consumer Discretionary (XLY), Financials (XLF), Technology (XLK), Real Estate (XLRE), and Industrials (XLI) all were down over 1%. XLF was dragged lower by Banks (KBE) and Regional Banks (KRE) which declined 2.79% and 2.72%, respectively. Amid recent underperformance, XLY now sits 10.45% below its 52-week high and XLK sits 9.70% below its 52-week high
• Themes: Clean Energy (PBW) was the worst performing global thematic segment on the day falling another 3.17%. PBW is down nearly 17% year-to-date and down 52.14% over the last year. NextGen Transportation (DRIV, -2.34%) and Genomics (ARKG, -1.83%) also lagged. Wind (FAN), Evolving Consumer (SOCL), and eSports & Video Games (ESPO) were the only segments to post gains
• Commodities & Yields: Broad Commodities (DJP) finished higher by 1.05% as Precious Metals (DBP) rose 2.01%. The U.S. Dollar (UUP) was lower by 23 bps while U.S. Aggregate Bonds (AGG) were up 22 bps. The U.S. 10-Year Treasury Yield touched 1.90% intraday Wednesday before falling

1.19.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: Major averages were sharply lower to begin the shortened trading week on Tuesday as U.S. Treasury Yields rose and earnings disappointed. As the U.S. 10-Year Treasury Yield topped 1.87% on the day, the highest levels since January 2020, SPY dropped 1.77%, DIA declined 1.47%, and QQQ fell 2.49%. Growth names were battered with S&P 500 Pure Growth (RPG) plunging 3.25%. Russian markets (ERUS) fell nearly 9% on Tuesday
• Sectors: All sectors were deep in the red with the exception of Energy (XLE) which gained 40 bps. Real Estate (XLRE) was the only other sector not to decline over 1% on Tuesday. Technology (XLK) and Financials (XLF) were the worst performers falling 2.40% and 2.23%, respectively. After posting solid returns on Tuesday, Biotech (XBI) plummeted nearly 6% and entered oversold territory. Semiconductors (XSD) also dropped 4.51%
• Themes: Bleak performance from global thematics as eSports & Video Games (ESPO, +59 bps) was the lone segment to post gains. All other segments fell over 1% and the large majority were down over 2.5% for the day. Genomics (ARKG) and Blockchain (BLOK) each plunged over 5% while Clean Energy (PBW), Solar (TAN), and Multi-Theme (ARKK) all declined over 4%. The worst performing thematic ETF on the day was the Bitwise Crypto Industry Innovators ETF (BITQ) which plummeted over 8%
• Commodities & Yields: U.S. Aggregate Bonds (AGG) were down 61 bps and 20+ Year Treasury Bonds (TLT) dropped 1.41%. The U.S. Dollar (UUP) was up 63 bps, Broad Commodities (DJP) rose 60 bps, and WTI Crude Oil (USO) was up 1.67%

1.18.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: On Friday, U.S. markets were mixed to end a choppy trading week. The tech oriented NASDAQ (QQQ) was up 62 bps, the S&P 500 (SPY) was higher by 4 bps, and the Dow Jones (DIA) was down 57 bps. S&P 500 Pure Value (RPV) added 60 bps and outpaced S&P 500 Pure Growth (RPG) which gained just 7 bps. Chinese markets (MCHI) returned +76 bps on the day
• Sectors: Energy (XLE) handily outperformed other sectors climbing 2,35% as Oil & Gas Equipment & Services (XES) and Oil & Gas Exploration & Production (XOP) each jumped over 3%. XLE currently sits at 52-week highs, but is in overbought territory. Technology (XLK) was up 85 bps while Financials (XLF) and Real Estate (XLRE) both declined over 1%. 
• Themes: Biotech (SBIO) was the top performing thematic segment on Friday gaining 2.52%, but remains down over 10% year-to-date. Water (PHO) and Online Retail (IBUY) lagged, declining 1.99% and 1.73%, respectively. FinTech (FINX) also underperformed falling over 1%. FINX is down nearly 11.50% thus far in 2021 and currently sits in oversold territory
• Commodities & Yields: Broad Commodities (DJP) finished the day higher by 1% while the U.S. Dollar (UUP) was up 28 bps. U.S. Aggregate Bonds (AGG) were lower by 56 bps and the U.S. 10-Year Treasury Yield rose sharply on Friday finishing the day above 1.78%

1.14.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: Major averages were lower on Thursday pressured by further indications of swelling inflation. The Producer Price Index (PPI), another key inflation measure, increased 9.7% year-over-year in December, the highest levels on record going back to 2010. Big tech names were battered leading to QQQ falling 2.50% on the day. SPY declined 1.38% and DIA was down 48 bps. S&P 500 Pure Growth (RPG) dropped 2.73% on the day while S&P 500 Pure Value (RPV) added 83 bps. Chinese markets (MCHI) were weak, falling 3.04%
• Sectors: Technology (XLK) declined 2.59% on the day, dragged lower by Microsoft (20.88% weight) which fell 4.23%. Consumer Discretionary (XLY) also fell 2.01% as Tesla (19.66% weight) plunged 6.75% yesterday. Utilities (XLU), Industrials (XLI), and Consumer Staples (XLP) were the only sectors to post gains. From an industry level, Internet (XWEB, -3.69%), Software & Services (XSW, -3.14%), and Semiconductors (XSD, -2.96%) lagged. Several Biotech ETFs (XBI, PBE, IBB) currently sit in oversold territory
• Themes: Dismal day for global themes as all segments posted losses with the large majority of segments falling over 2%. Multi-Theme (ARKK) and Disruptive Tech (DTEC) tumbled 5.42% and 5.41%, respectively. Genomics (ARKG), FinTech (FINX), eSports & Video Games (ESPO), and Evolving Consumer (SOCL) all plummeted over 4%. Every global thematic ETF was in the red on Thursday, the top performer was the First Trust Global Wind Energy ETF (FAN) which was lower by 5 bps
• Commodities & Yields: After Wednesday's 13.50% gain, Natural Gas (UNG) plunged 11.08%. Broad Commodities (DJP) were down 1.64% while the U.S. Dollar (UUP) was relatively flat. The U.S. 10-Year Treasury Yield fell below 1.71%, U.S. Aggregate Bonds (AGG) rose 18 bps, and 20+ Year Treasury Bonds (TLT) were higher by 89 bps

1.13.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: U.S. markets posted modest gains on Wednesday despite headline inflation, as measured by the Consumer Price Index (CPI), rising 7% year-over-year in December 2021, the highest increase since June 1982. Tech-heavy QQQ climbed 40 bps and extended its winning streak to 3 sessions, SPY added 27 bps, and DIA was up 11 bps. Large-Cap Growth (IVW) outperformed, gaining 48 bps. Chinese markets (MCHI) surged 2.16% 
• Sectors: Health Care (XLV, -0.29%) was the only sector in negative territory yesterday as Biotech (XBI) declined 3.17%, Health Care Services (XHS) dropped 2.11%, and Pharmaceuticals (XPH) fell 2.00%. Materials (XLB, +1.01%) gained over 1% for the second consecutive day, bolstered by Metals & Mining (XME) which jumped 2.26%. XLB sits just 39 bps below its 52-week highs 
• Themes: Genomics (ARKG) plunged over 4% on the day while the genomics-heavy ARK Innovation ETF (ARKK) declined 2.78%. ARKG is down nearly 13% year-to-date and has seen $115 million in net outflows over the last week. ARKK is down over 10% year-to-date, however, it has gathered $327 million in net inflows in the past week. Advanced Materials (REMX) was the top performing thematic segment returning 3.63% followed by Smart Infrastructure (GRID, +1.55%) and Blockchain (BLOK, +1.45%) ,
• Commodities & Yields: U.S. Aggregate Bonds (AGG) were flat on Wednesday while 20+ Year Treasury Bonds (TLT) declined 38 bps. The U.S. Dollar (UUP) dropped 66 bps, Broad Commodities (DJP) ended higher 1.67%, and Natural Gas (UNG) rocketed 13.50%. The U.S. 10-Year Treasury Yield was fairly steady around 1.73%

1.12.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: Following Fed Chairman Powell's testimony before the Senate, major U.S. averages saw solid gains with growth oriented tech names remaining strong. QQQ led the way rising 1.50% followed by SPY up 91 bps and DIA higher by 48 bps. In his testimony, Powell did not mention further acceleration of change in the central bank's policy which reassured investors. Both S&P 500 Pure Growth (RPG) and S&P 500 Pure Value (RPV) gained around 1% on the day while S&P 500 Low Volatility (SPLV) fell 15 bps
• Sectors: Energy (XLE) surged 3.40% on Tuesday handily outpacing other sectors. Oil & Gas Exploration & Production (XOP) and Oil & Gas Equipment & Services (XES) rose 4.42% and 3.99%, respectively, benefitting XLE. Currently, XLE sits at a 52-week high and has climbed nearly 14% year-to-date. However, many Energy ETFs, including XLE, reside in overbought territory. Communication Services (XLC), Technology (XLK), and Materials (XLB) all were up over 1% as well.
• Themes: Excellent day for Global Thematics as Advanced Materials (REMX), FinTech (FINX), Online Retail (IBUY), and Blockchain (BLOK) each jumped over 3%. Clean Energy (PBW, +2.83%) also recovered following Monday's losses. Just two thematic ETFs saw losses on Tuesday: the KraneShares SSE STAR Market 50 Index ETF (KSTR, -1.90%) and the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR, -0.30%)
• Commodities & Yields: The U.S. Dollar (UUP) fell 43 bps while U.S. Aggregate Bonds (AGG) were higher by 19 bps. Broad Commodities (DJP) were up nearly 2% with WTI Crude Oil (USO) gaining 3.56% and Natural Gas (UNG) up 2.40%. The U.S. 10-Year Treasury Yield also fell to around 1.75%

1.11.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: U.S. markets were mixed on Monday as rising bond yields rattled investors. The U.S. 10-Year Treasury Yield was above 1.80% intraday before settling around 1.78%. Tech-heavy QQQ added 7 bps and ended its losing streak. SPY fell for the fifth consecutive session declining 12 bps while DIA dropped 42 bps. Large-Cap Growth names (IVW) were up just 8 bps but outpaced other U.S. Size & Style ETFs
• Sectors: Health Care (XLV, +1.03%) and Technology (XLK, +0.02%) were the lone sectors in positive territory on Monday. Industrials (XLI) and Materials (XLB) each fell over 1% while Consumer Staples (XLP) declined 79 bps. XLV was bolstered by solid gains from Pharmaceuticals (XPH, +1.62%) and Health Care Equipment (XHE, +1.34%). Retail (XRT) and Transportation (XTN) both dropped around 1.60% on the day
• Themes: For the second consecutive day, Cannabis (MJ) was the best performing thematic segment climbing 1.84%. Sustainability ETFs struggled with Clean Energy (PBW) posting losses of 2.33%. Two Clean Energy ETFs (ICLN & RNRG) currently sit in oversold territory. Digital Payments (IPAY) and Fintech (FINX) also lagged declining over 1.80%
• Commodities & Yields: Broad Commodities (DJP) finished lower by 34 bps with WTI Crude Oil (USO) falling 90 bps while Natural Gas (UNG) was higher by 5.53%. The U.S. Dollar (UUP) was up 23 bps while 20+ Year Treasury Bonds (TLT) were up 25 bps

1.10.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: On Friday, major averages fell once again as headwinds from the Omicron variant and the hawkish U.S. Federal Reserve continue to concern investors. The S&P 500 (SPY) and NASDAQ (QQQ) each fell for the fourth consecutive session, declining 40 bps and 1.80%, respectively. The Dow Jones (DIA) was down just 2 bps. Growth names continue to lag as S&P 500 Pure Growth (RPG) dropped 1.78% on the day and is down 6.39% thus far in 2022. Conversely, S&P 500 Pure Value (RPV) added 1.33% on Friday and is up nearly 5% year-to-date
• Sectors: Financials (XLF) and Energy (XLE) each gained over 1% on the day while Consumer Discretionary (XLY) fell 1.67%. XLE has returned +10.52% year-to-date, however, it has also entered into overbought territory. Homebuilders (XHB) was the worst performing industry declining 3.44% followed by Semiconductors (XSD, -2.98%) and Health Care Equipment (XHE, -2.22%)
• Themes: Cannabis (MJ) and Casinos & Gaming (BETZ) were the top performing themes for the day climbing 1.78% and 1.10%, respectively. Biotech (SBIO) fell nearly 3% and continues to struggle (down nearly 8% year-to-date). The KraneShares CSI China Internet ETF (KWEB) outpaced all other thematic ETFs on Friday gaining 2.67%. KWEB has also gathered $125 million in net inflows over the past week
• Commodities & Yields: The U.S. Dollar (UUP) was lower by 54 bps while U.S. Aggregate Bonds (AGG) dropped 29 bps. Broad Commodities (DJP) finished up 65 bps, Natural Gas (UNG) +1.72% and Precious Metals (DBE) up 60 bps

1.7.2022

Breakdown of the previous day's market action through the lens of ETFs

• Equities: As investors mulled the Fed minutes released Wednesday, U.S. markets fell slightly. The S&P 500 (SPY) and NASDAQ (QQQ) declined 9 bps and 7 bps, respectively, while the Dow Jones (DIA) dropped 47 bps. Mid-Caps (IJH) and Small-Caps (IJR) outperformed. S&P 500 Minimum Volatility (SPMV) was down 52 bps, S&P 500 High Momentum (SPVM) was up 1.19%, and S&P 500 Pure Growth (RPG) was higher by 73 bps
• Sectors: Energy (XLE) remained strong adding 2.23% while Financials (XLF) gained 1.47%, aided by Banks (KBE) and Regional Banks (KRE) which both climbed over 3% on the day. Both XLE and XLF currently sit at 52-week highs. Materials (XLB), Health Care (XLV), and Utilities (XLU) each declined over 1%
• Themes: On a mixed day for Global Thematics, Genomics (ARKG) was the worst performing segment for the third consecutive day, falling 1.59%. ARKG is down over 10% on the week. Online Retail (IBUY) was the top performing segment climbing just 63 bps. The KraneShares CSI China Internet ETF (KWEB) outpaced all other Global Thematic ETFs on Thursday, surging 4.70%
• Commodities & Yields: Broad Commodities (DJP) ended the day higher by 34 bps and the U.S. Dollar (UUP) was up by 8 bps. WTI Crude Oil (USO) added 2.63% while Precious Metals (DBP) fell 1.62%. U.S. Aggregate Bonds (AGG) were lower by 11 bps and Preferred Income & Securities (PFF) was up by 54 bps