Edition 0013. 04.22.2022. Week of 04.18 - 04.24.2022.
This weekly commentary starts from the top. We will assess the performance of international and domestic equites, fixed income, and commodity markets. We start with the broadest ETFs and indices to consider the big picture. We then we zoom in to discover where the real strength resides. To increase the utility of this research, we use ETFs as much as possible.
Key Takeaways
From the broadest perspective, last week saw domestic and international equities, bonds, commodities, and international real estate sell off. Bonds, both domestically and internationally printed 52-week closing lows. Domestic real estate finished higher, as did the US Dollar Index which printed a 52-week closing high.
In the US equity space, we saw a lot of selling. We did get new highs from the large cap food/beverage/tobacco group and the household/personal products group.
Commodities were mixed. Lean hogs, lumber, and heating oil were up, while most other commodities were flat to down.
Bonds had a rough week with the most pain in international bonds and longer duration US Treasuries.
Global market ETFs were generally weak with several beaten down names bouncing higher. There continues to be an overwhelming amount of ETFs making closing lows while only 1, Nigeria, printed a new 4-week closing high.
Asset Classes
Performance Table.
Sorted by one week performance, this table looks at the broadest groups of domestic and international equites, real-estate, commodities, bonds, and the US dollar.
Click here for the performance table guide. Click the performance table to enlarge.
Last week saw domestic and international equities, bonds, commodities, and international real estate sell off. Bonds, both domestically and internationally printed 52-week closing lows. Domestic real estate finished higher, as did the US Dollar Index which printed a 52-week closing high.
Asset Class Year-to-Date Chart.
Click to enlarge.
From a year-to-date perspective, commodities have positive returns this year, though, as a whole, have stalled over the past 7 to 8 weeks. The US Dollar continues ever higher. The rest of the asset classes are all stable chopping around below 0. Domestic real estate is the best of the worst. The losses are led by global equities with global bonds performing nearly as bad.
US Equities
***For a detailed commentary and charts, click here to read the weekly edition of The US Equity Landscape.***
US Equity Factor Performance Table.
This table, sorted by one week performance, takes a broad view on the value, growth, and core style factors across the US equity cap-scale.
Click here for the performance table guide. Click the performance table to enlarge.
Last week the performance table for the US equity factors growth, value, and core all finished down. The losses were widespread. It is clear that growth led the losses. While value was down as well, it was down less.
US Equity Factor Performance Year-to-Date Chart.
Click to enlarge.
The year-to-date story is getting nasty. RPV, the large-cap pure value ETF, remains above 0 but is fading. RZV, the small-cap pure growth ETF, and MGV, the mega-cap value ETF have gone back into negative YTD territory.
S&P 500 Factor Performance Table.
***For a detailed commentary on 11 S&P 500 sectors, read the weekly edition of The Sector Inspector here.***
S&P 500 Factor Performance Table.
This table, sorted by one week performance, takes a look at several S&P 500 factor ETFs.
Click here for the performance table guide. Click the performance table to enlarge.
Last week in the large-cap space, there were no winning factors. Pure growth, which printed a 13-week closing low, and high beta, which printed a 52-week closing low, sold off the hardest. Low volatility and high dividend names sold of the least with the high dividend ETF printing a 4-week closing low.
S&P 500 Factor Performance Year-to-Date Chart.
Click to enlarge.
The year-to-date picture shows SPYD, the high dividend ETF, overtook RPV, the S&P 500 pure value ETF, as the YTD leader last week. Both names however lost value.
US Sector Industry Groups (GICS Level II) Performance Table.
This table, sorted by year-to-date performance, shows us the 24 industry groups across the S&P cap-scale.
Click here for the performance table guide. Click the performance table to enlarge.
Last week was a sea of red. Only 16 of 72, so 22%, of our industry groups closed with a gain. Across the cap scale, we only saw 2 new highs print in the large cap space last week. Household and personal products printed a 4-week closing high, and the food/beverage group printed an all-time closing high. Other than that, the YTD picture remains the same with energy, staples, utilities, food/beverage, and materials names showing a YTD gain.
For a refresher on the MSCI GICS Classification Standards, visit this website.
Commodities.
Performance Table.
This table, sorted by one week performance, takes a very broad perspective on the commodities landscape of energy, metals (industrial and precious), agriculture (grains and softs), and livestock.
Click here for the performance table guide. Click the performance table to enlarge.
Last week the only commodity basket showing a gain was livestock. Energy was the weakest. Base and precious metals lost value and printed 4-week closing lows.
Commodities Performance Year-to-Date Chart.
Click to enlarge.
The year-to-date story remains largely unchanged. Energy continues to lead followed by agriculture, base metals, livestock, and then precious metals.
Commodities Performance Table - Detailed.
This table, sorted by one week performance, zooms in on the commodity space.
Click here for the performance table guide. Click the performance table to enlarge.
Last week 30% of symbols, or 19 of 63, we follow closed higher. It was livestock that led the way with lean hogs lifting the space.
Energy – In the energy complex, heating oil rose while everything else fell.
Metals – Metals mostly closed lower. We did see small gains in zinc, nickel, and palladium.
Agriculture – Softs finished mixed with a large bounce in lumber. Grains were also mixed led by soybean and canola oil.
Livestock – The livestock space was mostly positive last week. Lean hogs led the space.
Commodity related ETFs – These names saw some pain, especially from miners. Shipping and unconventional oil & gas had very small gains.
Here is the commodities table sorted by the year-to-date change.
Click here for the performance table guide. Click the performance table to enlarge.
Fixed Income
Bonds Performance Table.
The charismatic CMT and founder of All-Star Charts, J.C. Parets, is known for saying, “I trust two things in this world: dogs and the bond market.” This table, sorted by one week performance, is grouped by international bonds, corporate bonds, municipal bonds, US government bonds, and broad bond ETFs.
Click here for the performance table guide. Click the performance table to enlarge.
Another ugly week for bonds. 87%, 27 of 31, of our ETFs closed lower. There was the slightest touch of buying in the short-term muni space, as well as in the 1-3 month treasury and the TIP space. In the US treasury space, the long end of the treasury curve sold off the most again. It was international bonds that were sold the most.
Bond Performance Year-to-Date Chart.
Click to enlarge.
YTD there are no bond ETFs above 0. The picture remains stable. The best of the worst includes the cash equivalents BIL and MINT, with short term tips taking over 2nd position. The laggards of the group remain long duration US treasuries, TLH and TLT, and emerging sovereign debt PCY.
Checking in on the Yield Curve. Click to enlarge.
Current yields are available here: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2022
International Equities
International Equities Performance Table.
This is another very high-level performance table, sorted by one week performance. Please think of the ETFs this way:
ACWI = developed and emerging markets. (including the US).
ACWX = developed and emerging markets. (excluding the US).
URTH = developed markets. (including the US).
EFA = developed markets. (excluding the US).
SCZ = developed markets small-caps. (excluding the US and Canada).
EEM = emerging markets.
EMXC = emerging markets. (excluding China).
EWX = Emerging markets small-caps.
FM = frontier markets.
SPTM = US market (small, mid, & large cap).
SPY = US market (large cap).
For a refresher on the how MSCI organizes the global markets, visit this website:
Click here for the performance table guide. Click the performance table to enlarge.
Last week was another rough week for equities around the globe. The losses were led by frontier markets, emerging markets, the US, and the best of the worst was developed markets ex-US. 9 of our global equity ETFs printed a 4-week closing low, while 1 printed a 13-week closing low, and 2 printed 52-week closing lows.
International Equities Year-to-Date Performance Chart.
Click to enlarge.
The YTD picture remains largely unchanged in terms of leadership and laggardship, though the entire space is diving lower. None of our markets, as whole, are positive this year-to-date, however frontier markets are the best of the worst and US small-caps are the worst of the worst.
International Equities Performance Table - Detailed.
Here is the detailed table with many international ETFs, sorted by one week performance.
Click here for the performance table guide. Click the performance table to enlarge.
Last week, developed markets were the least week with the small gains coming from YTD losers including Ireland, Austria, and Finland. In emerging markets, Indonesia and UAE finished with small gains and they are both positive YTD. Hungary and India also finished with gains, but those names have been negative YTD.
Here is the same table sorted by year-to-date change.
Click here for the performance table guide. Click the performance table to enlarge.
In the frontier market space, Nigeria has over taken Argentina as YTD leadership. In emerging markets, it is Brazil, Turkey, Columbia, and Chinese energy leading the gains. In the developed market space only Norway and Australia remain positive YTD.
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