ETF Scorecard – June 6th Edition

ETF Database

Major equity indexes inched higher throughout the week amid encouraging data releases at home. Investors cheered on improving ISM data and motor vehicle sales, while the lackluster ADP employment report received little to no attention. Overseas, the ECB stole the headlines yesterday when it finally announced the much-awaited rate cut, dropping its benchmark rate to 0.15% from 0.25% and even moving the deposit rate into negative territory in an effort to spur lending; the move was welcomed as equity markets on both sides of the Atlantic rallied higher throughout the day.  

To help investors keep up with markets, we present our ETF Scorecard, which takes a step back and looks at how various asset classes across the globe are performing. For most of the return comparisons below, we reference trailing 1-week and trailing 1-month returns; this offers a good insight into the prevailing sentiment in the markets by capturing the performances across short-term and longer-term time intervals [for more ETF news and analysis subscribe to our  free newsletter ].

Risk Appetite Review

The bulls remained the dominant force on Wall Street as High Beta stocks held onto the number one spot in terms of performance, although the advance this week was a bit tamer than last week’s: 

Major Index Review

U.S. small caps were among the best performers for a second week in a row; investors continue to shift back into this asset class, which initially began to pullback at the start of March while its peers held steady: 

 
Domestic Sector Review

Every sector enjoyed a positive performance over the past week; from a monthly perspective, Utilities have moved into positive territory although they are still the biggest laggard by far: 

Sector Valuations

There were not any material changes in valuations, and every sector saw its pricing-multiple increase as buyers stepped in: 

Foreign Equity Review

Despite yesterday’s ECB rate cut announcement, country ETFs from the currency bloc didn’t make too much headway; from a monthly perspective, India remains the biggest winner by far:

Regional Valuations

Valuation changes were mixed over the past week; the U.S. market saw the biggest increase while Latin America saw the biggest contraction in its pricing-multiple: 

Fixed-Income Review

Bond yields inched slightly higher across the board this week as investors broadly jumped ship from fixed-income securities and into equities:

Alternatives Review

Commodities

Natural gas was by far the biggest winner for a second week in a row while gold and silver prices failed to stage a comeback like many had anticipated:

Currencies

The currency market saw a bit of volatility on Thursday after the ECB unveiled its rate cut; from a weekly perspective, however, returns were fairly tame with the British pound inching higher while the Japanese yen slipped lower: 

 

*All data as of market close 6/5/2014.

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Disclosure: No positions at time of writing.

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