To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
As of Thursday’s close, the US market and all major foreign markets were up for the week. However, after the Brexit “Leave” vote was finalized, markets reacted with very high volatility and all major markets are in the red. After the votes came in, an emergency G7 meeting was scheduled for all day today to discuss the EU membership vote. The Prime Minister of the UK, David Cameron, has stepped down after the vote came in. The British pound collapsed to levels not seen in 30 years. Bank of England Governor Carney says BOE is ready to provide additional 250 billion pounds of funding, in light of the Brexit in order to calm the markets. Core durable goods orders growth was worse than expected, as reported this morning. The growth rate was reported at -0.3% vs the expected 0.1%. On a brighter note, unemployment claims were fewer than expected at 259,000 vs the expected 270,000.
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Risk Appetite Review
The overall market, as measured by the S&P 500 ETF (SPY A), is up this week with a 1.76% gain. This is as of Thursday’s close. This morning the S&P 500 index is down more than 2%. The high beta ETF (SPHB B-) is the best performer of the bunch, with a 4.26% gain for the week. The Low Volatility ETF (SPLV A) is up the least, with an increase of 1.09% for the week.
Major Index Review
All major indexes are in the green this week and for the rolling month as of Thursday, but are down this morning. The iShares MSCI EAFE ETF (EFA A) is the best performing of the week, with a 4.63% gain. However, this morning the ETF collapsed over 4%. The PowerShares QQQ ETF (QQQ A-) is the worst performer for the week and rolling month, with a gain of 1.15% and 1.75% respectively. This morning, it opened 3% lower. The best performer for the rolling month is iShares MSCI Emerging Markets ETF (EEM A-), with a 7.55% gain. It’s down 5% in morning trading.
Foreign Equity Review
All major foreign-tracking ETFs are up this week and rolling month. Here again, the picture changes if we look at the performance this morning. The worst weekly performer is India (EPI B+), with a 1.15% gain. It was down nearly 4% at this morning’s open. The United Kingdom (EWU A-) is the best performing this week, with a 6.91% gain. This was completely reversed this morning, though, when this ETF collapsed by nearly 10%. The best performer for the rolling month is iShares MSCI Brazil Capped ETF (EWZ B+), with a 9.09% gain. It’s down 4% this morning.
All commodities are up for the rolling month except for gold (GLD A-) and PowerShares DB Agriculture ETF (DBA A), which are down 2.56% and 2.86% respectively. However, gold is actually up 5% this morning, as investors seek shelter after the EU membership vote. Copper (JJC A) is the best performer for the week, with a 5.40% gain. The worst performer is PowerShares DB Agriculture ETF (DBA A), with a 2.86% loss this week. Natural gas (UNG B-) is the best performer for the rolling one month, up 23.14%. This dramatic rise in natural gas prices may be attributed to higher temperatures as people use the commodity for cooling purposes.
As of Thursday’s close the best performer this week was the British pound (FXB A-), which was up 4.01%. However, this morning the pound fell to its 30-year low and the ETF is down over 8%. The worst performing currency is the Japanese yen (FXY C+), which is down 1.62% for the week. Although, this morning it outperformed all other currencies on the list given its safe haven appeal after the vote results. All major currency ETFs are up for the rolling month except for U.S. dollar (UUP A), which is down 2.35%. The losses were offset this morning however.
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Disclosure: No positions at time of writing.