Seeking Alpha

AdvisorShares'  Instablog

AdvisorShares
  • on Portfolio Strategy & Asset Allocation
Send Message
AdvisorShares is a leading provider of actively managed exchanged-traded funds (ETFs), offering a diversified and transparent suite of core and alternative strategies. AdvisorShares provides educational support to help financial advisors and investors understand the benefits of actively managed... More
My company:
AdvisorShares
My blog:
AlphaBaskets
  • AdvisorShares Weekly Market Review – Week Ending 1/3/2014 0 comments
    Jan 7, 2014 5:39 PM | about stocks: SPY, XLE, LQD, TLT, VTI, VGK, VOO, QQQ, UNG, XLV, IVV, IWM, XLU, VWO, HYG, GLD, IWN, SHV, BND, MDY

    Highlights of the Prior Week

    Back At It

    In this new year, the magnitude of 2013 comes full circle. The S&P 500 and the Dow finished the year with 29.6% and 26.5% gains, respectively. For the Dow, that was the biggest annual gain since 1995, and the fifth consecutive positive year. Most impressive in the developed markets was Japan's Nikkei Stock Average, which surged 57%.

    Although S&P 500-based SPY had the most net new assets this past week, its $640 million growth pales in comparison to the largest equity ETF growths typically seen. This aligns with the stagnancy equity markets experienced in last week's holiday-shortened, four-day week. In fact, investors saw the first negative day to start a new year since 2008, as the S&P 500 returned -0.5%, Dow returned -0.1%, and the Russell 200 returned -0.6%. The two biggest losers in the ETF realm were iShares Core S&P 500 (IVV) and iShares Russell 2000 (IWM), losing $2.03 billion and $730 million, respectively.

    Treasury yields were fairly flat for the week, as the market acclimates itself back to non-Holiday weeks - the 10-year note remains around 3.00%. The iShares 20-Year Treasury Bond ETF (TLT) gained about $300 million in assets on the week. Similarly, the iShares Short Treasury Bond ETF (SHV) lost about $220 million. That was about all that was seen among significant creations/redemptions of U.S. Treasury securities.

    Investment grade primary issuance was virtually unseen this past week, as many market participants were on vacation. Nonetheless, iShares iBoxx Investment Grade Corporate Bond ETF (LQD) took in just under $400 million in new assets.

    There has been positive economic data to begin the new year - an upward revision to Q3 GDP refigured output growth at 4.1% quarter-over-quarter on an annualized basis. Housing prices again also registered double-digit increases.

    Weekly ETF Flows

    For December 30, 2013 to January 3, 2014

    S&P Sector Analysis

    As for the sectors of the S&P 500, only three outperformed the broad benchmark - Financials, Discretionary, and Healthcare. The others- Industrials, Materials, Technology, Staples, Telecom, Utilities, and Energy - all underperformed. The dispersion between the top-performing and bottom-performing sectors fell to 1.88% this week, with Financials outperforming all, and Energy coming in last.

    For December 30, 2013 to January 3, 2014

    Sector performances, as measured by the S&P 500 sector indices were:

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: Market Commentary Stocks: SPY, XLE, LQD, TLT, VTI, VGK, VOO, QQQ, UNG, XLV, IVV, IWM, XLU, VWO, HYG, GLD, IWN, SHV, BND, MDY
Back To AdvisorShares' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.