Top ETF Ideas for the Week

Source: ETF Global

• Small-cap ETFs remain at the forefront of our Top ETF Ideas of the Week with 6 of the 8 ETF ideas highlighted above maintain an exposure to small-cap stocks. US small-cap stocks have significantly underperformed their large-cap counterparts both in May and in 2019; the small-cap focused Russell 2000 Index fell 7.8% in May and is up just 9.2% in 2019 while the S&P 500 Index fell only 6.4% in May and is up 10.7% in 2019.
• In keeping with the trend of the last few weeks, the Quantamize models are specifically highlighting a value factor investing strategy within US small-cap stocks with the SPDR S&P 600 Small-Cap Value ETF (SLYV) and the iShares Russell 2000 Value ETF (IWN) among those highlighted above.
   
• Escalating trade concerns between the US and China were among the top drivers of the rout in US and Chinese stocks in May. In the month, the Hang Seng Index fell 13.4% while the S&P 500 Index fell 6.4% (as previously stated). For investors that expect a turnaround in US and/or Chinese stocks, our models suggest buying the Invesco S&P 500 Equal Weight ETF (RSP) and/or the iShares China Large-Cap ETF (FXI).

Fund Flows for Top ETF Ideas for the Week