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.
- Markets were mixed for the week.
- Britain’s inflation edged up to 1.0% in September from 0.6% previously, as a weak Pound increased import prices. Although still below the Bank of England’s target of 2%, an accelerating inflation could prevent the bank from further easing.
- In the U.S., 15 oil rigs were opened during the last week to a total of 539. Canada’s number of rigs was unchanged from the previous week.
- U.S. CPI came in at 0.3% in September, up from 0.2% in the prior month. For the year, inflation was up 1.5%.
- The Chinese economy grew by 6.7% in the third quarter, but industrial production of 6.1% fell short of estimates of 6.4%.
- Crude oil inventories in the U.S. fell by 5.2 million barrels this week, after rising by 4.9 million in the previous week.
- Unemployment claims in the U.S. stood at 260,000, above forecasts of 250,000. In the prior week, about 247,000 claims were filed.
- The Philly Fed Manufacturing Index in the U.S. increased to 9.7, beating forecasts of 7.0%. An indication above zero signals the manufacturing industry is expanding. The upbeat data could serve as a further reason for the Federal Reserve to raise rates this year.
- On the other side of the Atlantic, the European Central Bank decided to keep interest rates at 0.0% and said it will keep its $80 billion bond-buying program at least until March.
Risk Appetite Review
- The broad market (SPY ) was slightly down by 0.13%.
- The Low Volatility ETF (SPLV ) was the worst performer with a 0.79% drop.
- The High Beta ETF (SPHB ) has risen 1.17%, as investors embraced risk.
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Major Index Review
- Major indexes have posted mixed performance, with emerging markets and technology stocks among the risers.
- Emerging markets (EEM ) have spiked 1.29% this week – the best performance of the bunch. Emerging markets equities were underpinned by a rate cut in Brazil and upbeat economic data from China. The weekly advance has helped emerging markets beat other assets for the rolling month as well – up 1.40%. More information about emerging markets can be accessed here. Be sure to also take a look at our holistic list of Emerging Markets Equities ETFs here.
- The worst performer this week was Dow Jones (DIA ), which dropped 0.25%, in a sign investors were shunning stable, but low-yielding, blue chip companies.
- iShares Russell 2000 Index IWM (IWM ) fell 1.68% for the rolling month.
Foreign Equity Review
- Foreign ETFs were all up for the week.
- Brazil (EWZ ) has been the absolute leader regarding performance, with a 4.25% advance. The country’s equities are up 13.52% for the rolling month, in a sign that investors cheer the impeachment of Dilma Rousseff and the promised reforms by the market-friendly new government. Equities got a further boost after the central bank cut interest rates for the first time in four years. More information about Brazil ETFs can be accessed through Brazil ETF Investing: Five Critical Factors To Consider
- The worst performer for the week and the rolling month has been Britain (EWU ), up only 0.07% and down 3.06%, respectively. The country is seemingly on track for a “hard Brexit,” after its Prime Minister recently hinted she will put the interests of London’s financial center on the back seat. On top of that, inflation has been accelerating lately due to a weakening pound, making it harder for the central bank to further ease monetary policy. For ways to play the Brexit market catalyst, be sure to check out 4 ETFs to Play the Leave Vote. Further details about the Brexit deal can be accessed by reading Theresa May’s Hard Brexit Hint Hits the Pound.
- Commodities posted a mixed performance.
- Gold (GLD ) has soared 1.15% since last Thursday, despite a strong dollar lately and increased hopes for a rate hike this year in the U.S. The spike was largely a correction; as for the rolling month, the metal remains down 3.65%. More information about gold investing can be accessed by reading How to Invest in Gold: Physical vs. Miners ETFs.
- Natural gas (UNG ) was the worst performer for the week, down 2.64%, on increasing inventories and warm weather. For more information on how natural gas prices have fluctuated in recent weeks, check out the previous ETF Scorecard: October 14 Edition.
- Oil (USO ) has increased 15.81% this month, helped by sliding stockpiles in the U.S. and tightening fundamentals. A complete list of oil ETFs can be found here.
- Silver (SLV ) has had the worst performance for the rolling month, tumbling 8.32%, as a stronger dollar and rate hike speculations weighed on the commodity.
- Currencies were mixed this week.
- Emerging currencies have had the best performance this week, rising 1.56%, boosted by a strong Brazilian currency.
- The Euro fell 0.69% this week, as there were renewed signs of a divergence of monetary policies between the Euro Area and the U.S.
- The U.S. Dollar (UUP ) has been the best performer for the rolling month, up 2.54%, as strong economic data underpinned bets the Federal Reserve will raise rates this year.
- The British Pound fell 5.55% this month, weakened by anti-market rhetoric from Prime Minister Theresa May and rising inflation. A complete list of currency ETFs can be accessed at this page.
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Disclosure: No positions at time of writing.