ETF Edge Newsletter

Your weekly update on top ETF trends

VIEW IN BROWSER | SUBSCRIBE THU, MAY 28, 2020 YOUR WEEKLY UPDATE ON TOP ETF TRENDS A NOTE FROM BOB Double-digit gains for big ETFs this week as the rally broadens out.  Everything seems to be going right for the bulls.  Headlines around the three major movers of the market in the last few months: 1)  The reopening: going well or not?, 2) Monetary/fiscal stimulus: more coming or not?, and 3) Treatment/vaccine: advances or not?, are all favoring the bulls of the past couple weeks.  There are some storm clouds on the horizon for two other movers of the market: 4)  Trade war with China:  Heating up or not? and 5)  Valuation:  Overvalued or undervalued?, but they have not been able to overcome the good news from the first three points.   As a result, the rally is broadening out.  Megacaps are not the big movers of the market like they were earlier.    Instead we have double digit gains this week in ETFs associated with Airlines (JETS).  Perennial laggard Regional Banks (KRE)--is finally breaking out to its highest levels since early March--as well as  Oil and Gas Equipment (XES).   We also see strong high-single digit gains in Industrials (XLI), which broke out to its highest level since early March led by GE, Lockheed and Caterpillar.   And formerly washed up big box retailers surged. This week Macys, Nordstrom, Gap and Kohl's have all surged. Though they are not individually breaking out, they are helping the Retail ETF(XRT) break out to its highest level since early March — this is an equal weight index and looks awfully like a V-shaped recovery in retail.   Even European ETFs like Financials (EUFN) are rallying.   ETFs associated with megacap tech stocks (Microsoft, Apple, Amazon, Alphabet) are generally underperforming.   Those megacap stocks — the FAANG names — have led to some downside moves in ETFs that hold the FAANG names heavily like Nasdaq 100 QQQ, Internet Index Fund (FDN) and Nasdaq Internet ETF (PNQI)  Looks like megacaps may be being used as a source of funds for the other side of this rally. For more analysis and actionable insights, catch me live on Mondays at 1 on  ETF Edge. Bob Pisani @BobPisani KEY STORIES  How rising U.S.-China tensions could impact emerging market ETFs With a newly passed Senate bill putting U.S.-listed Chinese stocks at risk, issuers look at how delistings could affect emerging-market ETFs. Watch now: ETF Edge on how NYSE's head of ETFs is approaching the market, the changing face of low volatility This new-age industry is in the 'valley of despair,' but it may have a new catalyst: Ark Invest CEO 3D printing stocks have fallen up to 90% from their highs, but the group might be saved by other struggling industries looking to lower costs, says Ark Invest CEO Cathie Wood.     IN CASE YOU MISSED IT Low-volatility ETF gets a revamp. What it means for investors How rising U.S.-China tensions could impact emerging market ETFs NYSE ETF chief talks the state of the industry as assets under management climb   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2020 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS