|Bid||0.00 x 1000|
|Ask||0.00 x 1000|
|Day's Range||39.58 - 40.15|
|52 Week Range||38.77 - 52.08|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.18|
|Expense Ratio (net)||0.69%|
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.
In October, fund managers rotated to energy and material stocks while divesting growth and cyclical stocks. The overweight position in technology stocks declined significantly. As we highlighted in As Tech Leads the Market Decline, What are Investors Eyeing, tech stocks were the frontrunners in the sell-off as they are the same companies that have seen huge upward runs in 2018.
According to the latest BAML (Bank of America Merrill Lynch) survey, investors’ outlook for economic growth has worsened further. In August, a net 7% of the managers surveyed expected global growth to slow down next year. In September, a net 24% of the managers surveyed expected global growth to slow down in the next 12 months.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 231 global investors with $646 billion in total assets under management from October 5–11. The sell-off and concerns of peaking growth in the US might have tempted investors to shift into emerging markets (EEM). The emerging market currencies were in a free fall with many countries like Argentina, Turkey, India, Indonesia, and Brazil bearing the brunt.
Last week's sell-off in U.S. equities is spilling over into the emerging markets space, leaving investors to wonder when the strategy for value-hunting in EM turns into outright avoidance. One ETF that has been benefitting from EM's unceremonious fall from its rise in 2017 is the Direxion Daily MSCI Emerging Markets Bear 3X ETF (EDZ) . EDZ seeks daily investment results that equal 300% of the inverse of the daily performance of the MSCI Emerging Markets IndexSM. The index is a free float-adjusted market capitalization weighted index that is designed to represent the performance of large- and mid-capitalizations securities across the 24 emerging market countries.
According to research firm Dell’Oro Group, Ericsson (ERIC) is the leader in the global evolved packet core (or EPC) market. Its research report states that Ericsson’s share in EPC is higher than China’s (FXI) Huawei.
The International Monetary Fund (or IMF) cut its estimates for global growth for this year and for 2019, citing trade tensions between the US and its trading partners. It now estimates the global growth will come in at 3.7% in 2018 as compared to its previous estimate of 3.9%. The “World Economic Outlook” report is published twice a year, in April and October.
Stocks in the U.S. have tumbled as investors absorb the reality of a trade dispute with China. One way to respond: Go long overseas stocks.
Gold prices have failed to draw a bid in 2018 despite many market uncertainties, including trade war tensions, the emerging market (EEM) currency crisis, and other geopolitical concerns. Year-to-date, gold prices have fallen 6.4%, and they’re currently down 9.6% from their April peak. The SPDR Gold Shares ETF (GLD), a proxy for physical gold’s price, rose 2.6% yesterday, bringing gold’s gains in the last three days to ~3.0%.
Turkey is experiencing a breathtaking post-devaluation current account reversal. The International Monetary Fund (IMF) is toning down its optimism on the global economy in general and emerging markets in particular. We are at the IMF meetings in ...
Emerging markets have stabilized after ugly selling overnight in China, when more than 1,000 stocks in the Shanghai Composite Index fell to their daily limit. It is easy to see why investors are uncertain as corporate earnings commentary shows concerns about a trade war becoming a little less abstract and the extradition by the U.S. of an alleged Chinese spy it charged with conspiring to steal trade secrets escalates tensions between the two largest economies further. Yin Luo, quantitative strategist at Wolfe Research, tells Barron’s via email that his models still favor developed markets to emerging markets.
Emerging markets have been turned inside out this year after a spectacular run in 2017, but before an investor looks to dive into the deeply-discounted EM space after Wednesday’s 800-point drop in the Dow Jones Industrial Average, he or she must be still selective and exercise due diligence. Simply selecting a country-specific ETF in emerging markets without the proper research could be akin to catching a falling knife and as such, investors must use caution. While it may be enticing to see the red and buy into the dip, instabilities in certain countries’ financial systems could still leave these markets depressed, and as such, investors should shy away from these parts of the world.
The International Monetary Fund's director of fiscal affairs Vitor Gasper said that global debt reached a new high in 2017, topping the $182 trillion mark, but also said that India's debt, in particular, is much less than global debt as a percentage of the world's gross domestic product (GDP)--a positive economic sign that could benefit the Direxion Daily MSCI India Bull 3x ETF (INDL) . "So, it is substantially less than the global debt as percentage of world GDP," Gasper said regarding India's debt, which is below the average of developed and emerging market economies.
On one hand, the growth is expected to slow down, but the Fed doesn’t seem to be in any mood to slow down. The concern is also that due to the lag between policy change and its visible impact on the economy (SPY) (DIA), the Fed might keep tightening the rates. Investors are concerned that the Fed isn’t clear on the neutral policy rate. In Why a Fed Policy Mistake Is Worrying Markets, we highlighted why investors are worried that the Fed could keep hiking rates until something actually breaks in the economy.
Bank of America (or BofA) contends that gold prices (GLD) should surge over the next year as US budget deficit and trade war concerns start to have an impact on the US economy (SPY) (IVV). Bank of America expects gold prices (IAU) to average $1,350 per ounce in 2019 as the effect of US tax reforms wears off.
Gold prices dropped for the sixth straight month in September, which is gold’s longest monthly losing streak since January 1997. Year-to-date, gold prices are down by 9%, and they are down 12% from their April peak. Gold’s price decline is especially puzzling given the presence of many factors that would have usually supported its safe-haven appeal and thus its price.
Brent crude oil prices continue to jump beyond $80 a barrel, spurring a rally in energy stocks. In an era of trade sanctions and trade wars, emerging economics are subject to geopolitical shocks that could decelerate their growth. In our view, oil would rally first and emerging markets equities will fall afterwards as weaker countries feel the impact of higher oil prices.
In the meantime, trade wars have been racking international and emerging market funds, but one in particular, the EquBot AI Powered International Equity ETF (AIIQ) , produced a strong third quarter performance using a proprietary, quantitative model driven by artificial intelligence. Launched in June 2018, AIIQ is the first international-focused ETF that has successfully used AI to construct an international equity portfolio. While its developed market-focused fund peers experienced mixed results due to a choppy international market during Q3, AIIQ was able to buck the trend and deliver a return in excess of 3.4%, which bested its benchmark index--the MSCI ACWI ex-USA Index and the Vanguard FTSE Developed Markets ETF (VEA) .
While emerging markets have been roiled by ongoing trade wars this year, they've only been exacerbated by surging U.S. Treasury yields as of late with the benchmark yields rising beyond the 3% level, taking investor attention away from equities and bonds from abroad. EDZ seeks daily investment results that equal 300% of the inverse of the daily performance of the MSCI Emerging Markets IndexSM. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that provide inverse or short leveraged exposure to the index, which is a free float-adjusted market capitalization weighted index that is designed to represent the performance of large- and mid-capitalizations securities across the 24 emerging market countries.
While emerging markets have been roiled by ongoing trade wars this year, there are still opportunities abound for investors seeking value and one of those areas is within emerging markets debt through the VanEck Vectors EM High Yield Bond ETF (HYEM) . The rough year in emerging market is evident in ETFs, such as the Vanguard FTSE Emerging Markets ETF (VWO) --down 7.67% YTD, iShares Core MSCI Emerging Markets ETF (IEMG) --down 7.3% YTD and iShares MSCI Emerging Markets ETF (EEM) --down 7.78% YTD.