ETF Scorecard – August 1st Edition

Major equity indexes traded sideways for most of the week as earnings and economic data reports flooded the scene. Much to the bulls’ surprise, steep profit-taking pressures permeated Wall Street on Thursday, sparking a wave of selling that sent virtually every asset class tumbling; the S&P 500 Index shed 2% on the day, effectively erasing all of its prior gains accumulated throughout the month of July [see also How Well Do Defensive ETFs Actually Work?].

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 bears took over this week and selling pressures were the dominant force; not surprisingly, High Beta led the way lower: google.load('visualization', '1', {packages: ['corechart']}); function drawVisualization() { // Create and populate the data table. var data = google.visualization.arrayToDataTable([ ['Ticker', '5-Day Return', {role: 'style'}], ['S&P 500 (SPY)', -2.8, 'blue'], ['Equal Weight (RSP)', -2.81, 'orange'], ['High Beta (SPHB)', -3.58, 'red'], ['Low Volatility (SPLV)', -3.37, 'green'], ]); var formatter = new google.visualization.NumberFormat( {suffix: "%"}); formatter.format(data,1); // Create and draw the visualization. new google.visualization.BarChart(document.getElementById('visualization102875')). draw(data, {title:"Comparing Risk Preferences", width:700, height:400, vAxis: {title: ""}, hAxis: {title: ""}} ); } google.setOnLoadCallback(drawVisualization);

Major Index Review

The “Risk Off” theme is further evidenced given the negative performances across the board, with Small Caps being the biggest losers overall:

    
      google.load('visualization', '1', {packages: ['corechart']});
    
    
      function drawVisualization() {
        // Create and populate the data table.
        var data = google.visualization.arrayToDataTable([
          ['Index', '1-Week Return', '1-Month Return'],
      ['S&P 500 (SPY)', -2.8, -2.58],
['Nasdaq 100 (QQQ)', -2.16, -0.71],
['Dow 30 (DIA)', -3.02, -2.94],
['Russell 2000 (IWM)', -3.01, -7.2],
['Developed Markets (EFA)', -2.4, -3.8],
['Emerging Markets (EEM)', -2.54, -0.77],

      
      
      
      
      
        ]);
       var formatter = new google.visualization.NumberFormat(
                      {suffix: "%"});
                    formatter.format(data,1);
              formatter.format(data,2);
             
        
        
           var options = {
                  title:"Comparing Major Equity Benchmarks",
                  width:700, height:400,
                  hAxis: {title: ""},
                  
         };
      
        // Create and draw the visualization.
        new google.visualization.ColumnChart(document.getElementById('visualization102879')).
            draw(data, options);      
            
      }

      google.setOnLoadCallback(drawVisualization);
    
Domestic Sector Review

The Consumer Staples, Energy, and Industrial sectors were the worst performers over the last five days:

    
      google.load('visualization', '1', {packages: ['corechart']});
    
    
      function drawVisualization() {
        // Create and populate the data table.
        var data = google.visualization.arrayToDataTable([
          ['Index', '1-Week Return', '1-Month Return'],
['Discretionary (XLY)', -2.49, -3.2],
['Financials (XLF)', -2.65, -2.73],
['Energy (XLE)', -3.93, -3.75],
['Utilities (XLU)', -3.58, -2.94],
['Staples (XLP)', -4.07, -4.32],
['Technology (XLK)', -1.94, 0.13],
['Health Care (XLV)', -1.85, -2.26],
['Materials (XLB)', -2.74, -2.97],
['Industrials (XLI)', -3.89, -5.33],




      
      
      
      
      
      
      
      
      
      
      
        ]);
       var formatter = new google.visualization.NumberFormat(
                      {suffix: "%"});
                    formatter.format(data,1);
              formatter.format(data,2);
             
         var options = {
            title:"Comparing Sectors",
            width:700, height:400,
            hAxis: {title: ""},
            colors: ["purple", "limegreen"]
   };

  // Create and draw the visualization.
  new google.visualization.ColumnChart(document.getElementById('visualization102881')).
      draw(data, options);      
      
}
      

      google.setOnLoadCallback(drawVisualization);
    

Sector Valuations

Sector P/Es dropped across the board, with the Discretionary sector leading the way lower in terms of contracting valuations: google.load('visualization', '1', {packages: ['corechart']}); function drawVisualization() { // Create and populate the data table. var data = google.visualization.arrayToDataTable([ ['Index', 'Last Weeks P/E', 'This Weeks P/E'], ['Discretionary (XLY)', 19.63, 18.5], ['Financials (XLF)', 14.82, 14.75], ['Energy (XLE)', 15.88, 15.64], ['Utilities (XLU)', 16.3, 16.02], ['Staples (XLP)', 18.69, 18.3], ['Technology (XLK)', 16.47, 16.42], ['Health Care (XLV)', 17.44, 17.2], ['Materials (XLB)', 19.14, 18.84], ['Industrials (XLI)', 17.21, 16.75], ]); // Create and draw the visualization. new google.visualization.ColumnChart(document.getElementById('visualization102884')). draw(data, {title:"Valuation Review: Comparing Sector P/E's", width:700, height:400, hAxis: {title: ""}} ); } google.setOnLoadCallback(drawVisualization);

Foreign Equity Review

Chinese equities held their ground best this week while the rest of the foreign market lineup turned in a negative performance: 

    
      google.load('visualization', '1', {packages: ['corechart']});
    
    
      function drawVisualization() {
        // Create and populate the data table.
        var data = google.visualization.arrayToDataTable([
          ['Index', '1-Week Return', '1-Month Return'],
['Brazil (EWZ)', -5.77, 1.38],
['Russia (RSX)', -4, -11],
['India (EPI)', -3.78, -5.48],
['China (FXI)', 0.87, 5.31],
['Japan (EWJ)', -0.74, -1.48],
['Australia (EWA)', -1.59, 0.19],
['Germany (EWG)', -4.65, -8.04],
['United Kingdom (EWU)', -2.35, -4.27],





      
      
      
        ]);
       var formatter = new google.visualization.NumberFormat(
                      {suffix: "%"});
                    formatter.format(data,1);
              formatter.format(data,2);
             
          var options = {
            title:"",
            width:700, height:400,
            title: "Geographic Review: Comparing Single Countries",
            colors: ["green", "orange"]
   };

  // Create and draw the visualization.
  new google.visualization.ColumnChart(document.getElementById('visualization102887')).
      draw(data, options);      
      
}
      

      google.setOnLoadCallback(drawVisualization);
    

Regional Valuations

Regional P/Es were either flat or dropped lower, with the ex-U.S. group posting a very small improvement: 

    
      google.load('visualization', '1', {packages: ['corechart']});
    
    
      function drawVisualization() {
        // Create and populate the data table.
        var data = google.visualization.arrayToDataTable([
          ['Index', 'Last Weeks P/E', 'This Weeks P/E'],
   ['United States (SPY)', 16.77, 16.48],
['ex-U.S. (CWI)', 13.98, 14.01],
['Asia Pacific (GMF)', 12.88, 12.94],
['Dev. Europe (FEZ)', 14.45, 14.43],
['Em. Europe (GUR)', 7.3, 7.1],
['Latin America (GML)', 13.92, 13.8],
['Middle East & Africa (GAF)', 15.8, 15.77],

      
      
      
      
      
      
      
      
      
      
      
      
      
        ]);
      
             
        // Create and draw the visualization.
        new google.visualization.ColumnChart(document.getElementById('visualization102889')).
            draw(data,
                 {title:"Valuation Review: Comparing Regional P/E's",
                  width:700, height:400,
                  hAxis: {title: ""}}
            );
      }
      
      
      
      
      
      
      

      google.setOnLoadCallback(drawVisualization);
    
Alternatives Review

Commodities

Oil prices posted the biggest decline over the last week, while natural gas prices remain at the bottom of the barrel from a monthly perspective: 

// 
// 

Currencies

The U.S. dollar is the only currency that managed to stay in positive territory this week, and it’s also the best performer from a monthly perspective as well:

    
      google.load('visualization', '1', {packages: ['corechart']});
    
    
      function drawVisualization() {
        // Create and populate the data table.
        var data = google.visualization.arrayToDataTable([
          ['Index', '1-Week Return', '1-Month Return'],
[' U.S. Dollar (UUP)', 0.74, 1.64],
['Euro (FXE)', -0.53, -1.61],
['Yen (FXY)', -1.09, -0.67],
['Pound (FXB)', -0.63, -1.58],
['Aussie (FXA)', -1.31, -0.53],
['Emerging Markets (CEW)', -0.68, -0.24],




      
      
      
      
      
      
      
      
      
      
        ]);
       var formatter = new google.visualization.NumberFormat(
                      {suffix: "%"});
                    formatter.format(data,1);
              formatter.format(data,2);
             
         var options = {
                  title:"",
                  width:700, height:400,
                  title: "Comparing Currencies",
                  colors: ["skyblue", "yellowgreen"]
         };
      
        // Create and draw the visualization.
        new google.visualization.ColumnChart(document.getElementById('visualization102894')).
            draw(data, options);      
            
      }
      
      
      

      google.setOnLoadCallback(drawVisualization);
    

*All data as of market close 7/31/2014.

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Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.