ETF Action: Research

10.15.2021

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

• Equities: U.S. markets surged on Thursday with all major averages up over 1.5%. Better-than-expected Q3 earnings, especially from major U.S. banks, provided the lift. Thus far, of the 35 companies (10% weight) in the S&P 500 (SPY) that have reported Q3 earnings, 83% beat earnings-per-share estimates. QQQ led the way for the second consecutive day gaining 1.84%, SPY up 1.68% and DIA +1.52%. S&P 500 Pure Growth (RPG) jumped 1.96% and led other factor strategies, followed closely by S&P 500 High Beta (SPHB, +1.94%)
• Sectors: All sectors returned over 1% for the day with Materials (XLB) and Technology (XLK) each climbing over 2%. Energy (XLE) and Consumer Discretionary (XLY) currently sit at 52-week highs while Financials (XLF) is just 23 bps from its 52-week high. The First Trust Nasdaq Semiconductor ETF (FTXL) was the top performer, rising 3.27%
• Themes: Fintech (FINX) and Genomics (ARKG) led other global thematic segments, gaining 2.68% and 2.42%, respectively. Sustainability ETFs cooled off with Clean Energy (PBW), Wind (FAN), and Solar (TAN) all posting losses for the day. Worst performer for the day was the KraneShares CSI China Internet ETF (KWEB), which sunk 1.73%
• Commodities: Precious Metals (DBP) finished higher 68 bps with Platinum (PPLT) gaining nearly 4%, Copper (CPER) up 2.51%, and Silver (SLV) +2.20%. WTI Crude Oil (USO) was up another 1.16% and Broad Commodities (DJP) up 1.13%

10.14.2021

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

• Equities: Major averages rebounded yesterday posting gains for the first time this week.  Tech heavy QQQ climbed 80 bps and outpaced SPY and DIA,  which gained 36 bps and 3 bps, respectively. S&P 500 Pure Value (RPV) finished down 61 bps and lagged S&P 500 Pure Growth (RPG), which was up 69 bps, for the second straight day
• Sectors: Utilities (XLU) outperformed, returning 1.17% on the day, Financials (XLF) and Energy (XLE) were the only sectors finishing lower. Internet (XWEB) rose 2.43%. Several Energy ETFs, including the iShares U.S. Energy ETF (IEF), remain in overbought territory while a number of Health Care ETFs remain in or near oversold territory
• Themes: Cannabis (MJ) and Biotech (SBIO) were the only thematic segments posting losses for the day while 8 segments were up over 2%. Another great day for Sustainability ETFs as Wind (FAN) was the top performing segment rising 3.08% while Solar (TAN) and Clean Energy (PBW) jumped 2.52% and 2.14%, respectively. The Global X Lithium & Battery Tech ETF (LIT) was the top performer of the day, higher by 4.68%
• Commodities: Broad Commodities (DJP) finished up 97 bps with Precious Metals (DBP) +2.08% and Natural Gas +3.71%
• Yields: U.S. Dollar (UUP) fell 55 bps, 10-Year U.S. Treasury Yield also dipped following Wednesday's inflation data release, but remains above 1.5%

10.13.2021

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

• Equities: The losing streak for U.S. markets extended into its third day on Tuesday as SPY declined 25 bps, QQQ was lower 35 bps, and DIA was down 35 bps. Mid-Caps (IJH, +55 bps) and Small-Caps (IJR, +27 bps) handily outperformed on the day and S&P 500 Pure Growth (RPG, +22bps) outpaced S&P 500 Pure Value (RPV, -15 bps)
• Sectors: Mixed day with 6 sectors in the green, Real Estate (XLRE) was the top performer for the second consecutive day, gaining 1.34%. Communication Services (XLC) fell 93 bps and dragged performance. The Vanguard Information Technology ETF (VGT) has led net inflows over the past week, gathering $815 million 
• Themes: Excellent day for Sustainability ETFs with Solar (TAN, +5.50%), Clean Energy (PBW, +3.49%), and Wind (FAN, +2.82%) outperforming all other global thematic segments on the day. Each of the top 10 performers were Sustainability ETFs. Blockchain (BLOK) lagged, declining 2.20%. The KraneShares CSI China Internet ETF (KWEB) has seen more recent net inflows over the past week ($231 million) despite being down nearly 2% in the period
• Commodities: Relatively tame day for Natural Gas (UNG) as it gained 1.07% while WTI Crude Oil (USO) fell 12 bps. Broad Commodities (DJP) -33 bps

10.12.2021

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

• Equities: Major averages started off the week lower amid numerous headwinds around inflation, earnings expectations, and continued supply shortages. SPY fell 72 bps, QQQ dropped 77 bps, and DIA declined 73 bps
• Sectors: Real Estate (XLRE) and Materials (XLB) were the only two sectors in the green while Utilities (XLU), Communication Services (XLC), and Financials (XLF) each declined over 1%. Retail (XRT), which has seen sizeable inflows ($266 million) over the past week, was the worst performing industry and dropped nearly 2%
• Themes: Solar (TAN, +3.64%) outpaced other global thematic segments, followed by Advanced Materials (REMX, +2.62%). Digital Payments (IPAY) lagged, falling nearly 3%
• Commodities: WTI Crude Oil (USO) rose 1.28% on the day while Natural Gas (UNG) fell 3.72%. Broad Commodities (DJP) finished higher by 17 bps

10.11.2021

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

• Equities: U.S. markets fell on Friday ending the three-day winning streak, SPY down 18 bps, QQQ lower by 50 bps, and DIA declined 3 bps. Pure-Growth names (RPG) dropped nearly 1% while Pure-Value (RPV) names gained 0.42% on the day. 
• Sectors: Energy (XLE) rocketed over 3% on the day while Financials (XLF) was up 49 bps. Both sectors currently sit a their respective 52-week highs. Notably, there are several energy ETFs well into overbought territory.
• Themes: Majority of thematic segments were in the red for the day with the exception of Blockchain (BLOK, +0.58%), Biotech (SBIO, +29 bps), and NextGen Transportation (DRIV, +7 bps). The top performers were the KraneShares CICC China 5G & Semiconductor Index ETF (KFVG) and the KraneShares CSI China Internet ETF (KWEB), which gained 3.15% and 1.77%, respectively
• Commodities: Broad Commodities (DJP) were flat on the day as Natural Gas (UNG) fell over 2.5% and WTI Crude Oil (USO) up 20 bps

10.8.2021

• Equities: Major averages posted solid gains for the third consecutive day following a short-term debt ceiling solution from Congress and encouraging jobless claims figures. SPY gained 86 bps, QQQ up 92 bps, and DIA higher by 1.02%. S&P 500 Pure Growth (RPG) climbed 1.15% on the day and slightly outpaced S&P 500 Pure Value (SPV), which rose 1.03%. Chinese markets (MCHI) shot up over 4%
• Sectors: All sectors were positive with the exception of Utilities (XLU), which sunk 53 bps. Consumer Discretionary (XLY), Health Care (XLV), and Materials (XLB) each gained over 1%. Oil & Gas Equipment & Services (XES) shot up 3.25% yesterday and is up over 11% in the past month
• Themes: Excellent day for Global Thematic ETFs as Blockchain (BLOK) was the only segment in the red while Advanced Materials (REMX) and Evolving Consumer (SOCL) each rose nearly 4%. The KraneShares CSI China Internet ETF (KWEB), which has gathered over $1 billion in net inflows over the past month, rocketed 7.12% on the day. Meanwhile, the KraneShares CICC China 5G & Semiconductor Index ETF (KFVG) entered oversold territory
• Commodities: WTI Crude Oil (USO) up 2.22% on the day and Precious Metals (DBP) lower by 50 bps. Broad Commodities (DJP) +1.05%
• Yields: The U.S. 10-Year Treasury rose above 1.5% yesterday while 20+ Year Treasury Bonds (TLT) sunk over 1%

10.7.2021

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

• Equities: After starting off the day deep in the red, U.S. markets reversed course and finished higher for the second consecutive day. SPY gained 42 bps, QQQ +64 bps, and DIA up 29 bps. Large-cap growth names (IVW) once again outperformed while small-caps declined on the day 
• Sectors: Utilities (XLU) was the top performing sector on the day climbing 1.55%, Energy (XLE) fell 1.05% after posting gains for three straight trading sessions. Notably, all sectors currently sit within 10% of relative 52-week highs. The iShares Biotechnology ETF (IBB), which has over $10 billion in AUM, is well into oversold territory
• Themes: Mixed day for themes as Disruptive Tech (ARKW) and FinTech (FINX) were each up over 1.5% while Genomics (ARKG) and Casinos & Gaming (BETZ) were each down over 1.25%. The ETFMG Treatments Testing and Advancements ETF (GERM) was the worst performer, falling 2.22%, but remains up over 22% year-to-date
• Commodities: Broad Commodities (DJP) lower 2.34% as Natural Gas (UNG) plummeted 9.32% and WTI Crude Oil (USO) down 2.64%

10.6.2021

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

• Equities: Major averages rebounded yesterday, lifted by growth-oriented pockets of the markets. SPY gained 1.04% and tech heavy QQQ climbed 1.35%. Large-caps handily outperformed both mid-caps and small-caps on the day
• Sectors: Real Estate (XLRE, -0.78%) and Utilities (XLU, -0.25%) were the only sectors posting losses while Financials (XLF, +1.96%), Communication Services (XLC, +1.49%), and Technology (XLK, +1.43%) outperformed. XLF currently sits just 1.13% from its 52-week high. There are a slew of Energy ETFs currently in overbought territory as well as several Health Care ETFs in oversold territory
• Themes: Blockchain (BLOK) and Advanced Materials (REMX) gained 4.21% and 3.41%, respectively, and led other thematic segments yesterday. Digital Infrastructure (SRVR) was down 90 bps
• Commodities: Broad Commodities (DJP) higher by 1.51% as Natural Gas (UNG) continued its climb, rising another 6.82%. WTI Crude Oil (USO) up 2.09% and sits around 7-year highs

10.5.2021

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

• Equities: U.S. markets were deep in the red on Monday with SPY falling 1.29% and QQQ dropping 2.10% as growth names continued to drag on performance. Notably, S&P 500 Growth (RPG) plummeted 2.43% yesterday while S&P 500 Pure Value (RPV) was higher by 4 bps. Over the past month, RPV has outpaced RPG by nearly 9%
• Sectors: Energy (XLE) and Utilities (XLU) each gained over 1% on the day while Technology (XLK) and Communication Services (XLC) each declined over 2%. Internet (XWEB) fell 3.5% amid mass outages and continued headwinds for Facebook
• Themes: All global thematic ETFs were negative on the day, Clean Energy (PBW) and Solar (TAN) fell over 4.5%. The top performer was the nvesco S&P Global Water Index ETF (CGW) which dropped 16 bps
• Commodities: Natural Gas (UNG) was up 5.76% and WTI Crude Oil (USO) higher by 2.31%, Broad Commodities (DJP) +1.81%

10.4.2021

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

• Equities: Major averages started off October on a positive note, SPY was up 1.19%, QQQ higher by 62 bps and DIA +1.45%
• Sectors: 7 sectors gained over 1% on Friday, led by Energy (XLE) which surged 3.36%. Oil & Gas Equipment & Services (XES) climbed 4.5% on the day
• Themes: Blockchain (BLOK) and Casinos & Gambling (BETZ) jumped 3.83% and 3.49%, respectively. The ARK Innovation ETF (ARKK) saw $680 million in net outflows over the past week
• Commodities: Broad Commodities (DJP) was up 24 bps while Natural Gas (UNG) fell 4.37% and Coffee (JO) rose 5.55%