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The great reopening of the US is happening and this week’s concentration will be on US Consumer Smart Beta ETFs. Consumer stocks are of big interest, with US employment numbers coming in better than expected last week, and monetary and fiscal stimulus appearing full steam ahead, there should be ample money in consumer’s pockets to purchase discretionary and non-discretionary goods. Of course, many of these have rallied alongside the overall markets, and with commodities flashing inflationary signs, there could be some issues going forward. That being said, with the markets teetering at all-time highs, Q.ai’s deep learning algorithms have identified several of the top US Consumer Smart Beta ETFs based on fund flows over the last 90-days, 30-days, and 7-days. We’ve rated two ETFs as Best, one as Good, six as Caution, and one as Poor.
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Best
Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS)
The first of two ETFs that scored Best for the week according to our AI systems is the Invesco S&P 500 Equal Weight Consumer Staples ETF. This ETF is based on the S&P 500 Equal Weight Consumer Staples Index. Based on AUM, it is on the smaller side this week with $477,803,255.80 AUM. It has seen positive fund flows lately of $10,997,274.10 over the last 90-days and its net expense ratio of 0.40% is relatively pricey.
Simple moving average of Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS)
Consumer Staples Select Sector SPDR Fund (XLP)
The Consumer Staples Select Sector SPDR Fund is our final Best-rated ETF for this week. This ETF seeks to provide precise exposure to companies from the food and staples retailing, beverage, food product, tobacco, household product and personal product industries in the U.S. The ETF has $10,822,918,342.42 AUM, and has seen negative fund flows. It’s seen a 90-day fund flow of -$11,172,719.80, a 30-day fund flow of -$440,077,024.45, and 1-week fund flow of -$812,272,440.40. The ETF also has a net expense ratio of 0.12% which is attractive.
Simple moving average of Consumer Staples Select Sector SPDR Fund (XLP)
Good
SPDR S&P Retail ETF (XRT)
The SPDR S&P Retail ETF is our only Good-rated ETF this week. This ETF seeks to provide exposure to the retail segment of the S&P TMI, which comprises the following sub-industries: Apparel Retail, Automotive Retail, Computer & Electronic Retail, Department Stores, Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets & Super Centers, Internet & Direct Marketing Retail, and Specialty Stores. The fund is on the smaller side and has $704,171,336.67 AUM. The ETF has seen positive fund flows, with a 90-day fund flow of $565,038,874.65, a 30-day fund flow of $306,323,259.40, and a 1-week fund flow of $291,607,141.75. Its net expense ratio of 0.35% is on the higher end.
Simple moving average of SPDR S&P Retail ETF (XRT)
Caution
Vanguard Consumer Staples ETF (VDC)
The Vanguard Consumer Staples ETF comes in as our first Caution-scored ETF for the week. This ETF seeks to track the performance of a benchmark index that measures the investment return of stocks in the consumer staples sector. With $$5,536,510,972.74 AUM, it is medium in size this week. It has seen mixed fund flows, with a 90-day fund flow of $17,957,164.10 and a 30-day fund flow of -$84,947,084.70. It also has a fairly decent net expense ratio of 0.10%.
Simple moving average of Vanguard Consumer Staples ETF (VDC)
Amplify Online Retail ETF (IBUY)
The Amplify Online Retail ETF is our second Caution-rated ETF this week. The fund’s goal is to provide investment results that, before fees and expenses, correspond generally to the price performance of the EQM Online Retail Index. The ETF is smaller-sized with $1,634,520,000.00 AUM. It has seen mixed fund flows, with a 90-day fund flow of -$374,783,500.00 and a 30-day fund flow of $12,580,000.00. Its net expense ratio of 0.65% is the most expensive this week.
Simple moving average of Amplify Online Retail ETF (IBUY)
SPDR S&P Homebuilders ETF (XHB)
The next Caution-rated ETF is the SPDR S&P Homebuilders ETF. This ETF seeks to provide exposure to the homebuilders segment of the S&P TMI, which comprises the following sub-industries: Home Building, and may include Building Products, Home Furnishings, Home Improvement Retail, Homefurnishing Retail, and Household Appliances. It is medium-sized this week with $1,892,353,244.17 AUM. The ETF has seen mixed fund flows, with a 90-day fund flow of $111,761,684.80, a 30-day fund flow of -$141,186,984.60, and a 1-week fund flow of -$43,932,508.20. The ETF’s net expense ratio of 0.35% is slightly elevated this week.
Simple moving average of SPDR S&P Homebuilders ETF (XHB)
iShares US Consumer Goods ETF (IYK)
The iShares US Consumer Goods ETF is our next Caution-ranked ETF this week. This ETF seeks to track the investment results of an index composed of U.S. equities in the consumer goods sector. The ETF is on the smaller side on this week’s list with $707,956,263.30 AUM. It has seen negative fund flows, with a 90-day fund flow of -$115,742,050.00 and a 30-day fund flow of -$8,952,235.00. Its net expense ratio of 0.44% is on the higher end.
Simple moving average of iShares US Consumer Goods ETF (IYK)
iShares U.S. Home Construction ETF (ITB)
The iShares U.S. Home Construction ETF is another Caution-ranked ETF this week. This ETF seeks to track the investment results of an index composed of U.S. equities in the home construction sector. The ETF is on the medium side, but larger than most of the ETF’s on this week’s list with $2,712,213,711.90 AUM. It has seen negative fund flows, with a 90-day fund flow of -$271,491,605.00, a 30-day fund flow of -$299,769,620.00, and a 1-week fund flow of -$40,887,840.00. Its net expense ratio of 0.44% is also on the higher side this week.
Simple moving average of iShares U.S. Home Construction ETF (ITB)
Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
The Fidelity MSCI Consumer Discretionary Index ETF is our final Caution-rated ETF this week. This ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Consumer Discretionary Index. It is on the smaller side with $1,548,253,946.94 AUM. The ETF has seen positive fund flows, with a 90-day fund flow of $19,461,966.60, a 30-day fund flow of $12,080,803.20, and a 1-week fund flow of $8,098,072.35. With a net expense ratio of 0.08%, it is the cheapest this week.
Simple moving average of Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
Poor
First Trust Consumer Discretionary AlphaDEX Fund (FXD)
The First Trust Consumer Discretionary AlphaDEX Fund comes in as our only Poor-scored ETF for the week. This ETF’s objective is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the StrataQuant Consumer Discretionary Index. With $1,784,820,120.80 AUM, it is smaller in size this week. It has seen positive fund flows, with a 90-day fund flow of $190,786,000.00, 30-day fund flow of $48,996,500.00, and 1-week fund flow of $48,918,500.00. It also has a fairly elevated net expense ratio of 0.63%.
Simple moving average of First Trust Consumer Discretionary AlphaDEX Fund (FXD)
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