{"id":2202,"date":"2022-11-07T14:57:47","date_gmt":"2022-11-07T19:57:47","guid":{"rendered":"https:\/\/www.etfrc.com\/articles\/?p=2202"},"modified":"2022-11-07T14:57:48","modified_gmt":"2022-11-07T19:57:48","slug":"benchmark-sector-etfs-week-in-review-5","status":"publish","type":"post","link":"https:\/\/www.etfrc.com\/articles\/index.php\/2022\/11\/07\/benchmark-sector-etfs-week-in-review-5\/","title":{"rendered":"Benchmark & Sector ETFs: Week in Review"},"content":{"rendered":"\n
<\/div>\n\n\n\n

Week Ending November 4, 2022<\/h4>\n\n\n\n

Domestic stocks fell last week, with the Tech-heavy NASDAQ 100 (QQQ<\/a>) shedding nearly 6%. However foreign shares did better, with Emerging Markets in particular posting strong gains (Table 1).<\/p>\n\n\n\n

For this week’s valuation metric we examine an unconventional\u2014and many would argue contrary<\/em>\u2014indicator: analysts’ ratings. We translated the standard five-tier rating system (Strong Buy\/Buy\/Hold\/Sell\/Strong Sell) for individual stocks into a 0-100 scale to measure analysts’ consensus sentiment. (100 indicates all analysts have a Strong Buy rating).<\/p>\n\n\n\n

Analysts are an optimistic bunch, which is why nearly everything falls somewhere in Buy<\/em><\/strong> territory. Nonetheless, stocks still react to analyst upgrades and downgrades, so monitoring their relative bullishness as well as changes in sentiment can still be worthwhile.<\/p>\n\n\n\n

Currently analysts are most bullish on stocks in the NASDAQ 100 and Emerging Markets (EEM<\/a>), while being relatively bearish for mid-caps (MDY<\/a>), though sentiment there is notably more positive than it has been on average over the past five years.<\/p>\n\n\n\n

<\/div>\n\n\n\n

TABLE 1: Major Benchmarks: Weekly Total Returns and Valuation Update<\/strong>
Week ending November 4, 2022<\/em> <\/p>\n\n\n\n

Ticker<\/strong><\/td>Fund<\/strong><\/td>Return<\/strong><\/td>Current Rtg.<\/strong><\/td>5 yr. Avg<\/strong><\/td>Prem\/Disc.<\/strong><\/td><\/tr>
SPY<\/a><\/td>SPDR S&P 500 ETF Trust<\/td>-3.3%<\/td>77.5<\/td>77.5<\/td>0.0%<\/td><\/tr>
QQQ<\/a><\/td>Invesco QQQ Trust<\/td>-5.9%<\/td>80.0<\/td>81.0<\/td>-1.2%<\/td><\/tr>
MDY<\/a><\/td>SPDR S&P Midcap 400 ETF Trust<\/td>-1.2%<\/td>74.0<\/td>71.0<\/td>4.2%<\/td><\/tr>
IWM<\/a><\/td>iShares Russell 2000 ETF<\/td>-2.4%<\/td>76.5<\/td>74.5<\/td>2.7%<\/td><\/tr>
EFA<\/a><\/td>iShares MSCI EAFE ETF<\/td>1.5%<\/td>75.5<\/td>72.0<\/td>4.9%<\/td><\/tr>
EEM<\/a><\/td>iShares MSCI Emerging Markets ETF<\/td>5.6%<\/td>80.0<\/td>79.5<\/td>0.6%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: FactSet Research Systems and ETF Research Center. <\/em> <\/p>\n\n\n\n

<\/div>\n\n\n\n

Among sectors, Energy (XLE<\/a>) was the best performer last week, gaining 2.4%, while Communication Services (XLC<\/a>) and Tech (XLK<\/a>) both tanked more than 6%.<\/p>\n\n\n\n

Despite this, analysts remain more bullish on the Tech sector than any other, but that sentiment is about were it has been (i.e., it is only 0.6% higher than average). Meanwhile analysts are most bearish, relatively speaking, on Financials (XLF<\/a>). Notably, sentiment on Real Estate (XLRE<\/a>) stocks is much better than it has been in recent years, and tied with Consumer Discretionary (XLY<\/a>) for analysts’ top picks after Technology.<\/p>\n\n\n\n

<\/div>\n\n\n\n

TABLE 2: Major Sectors: Weekly Total Returns and Valuation Update<\/strong>
Week ending November 4, 2022<\/em> <\/p>\n\n\n\n

Ticker<\/strong><\/td>Fund<\/strong><\/td>Return<\/strong><\/td>Fwd. P\/BV<\/strong><\/td>10 yr. Avg<\/strong><\/td>Prem\/Disc.<\/strong><\/td><\/tr>
XLC<\/a><\/td>Communication Services Select Sector SPDR<\/td>-6.8%<\/td>77.5<\/td>81.0<\/td>-4.3%<\/td><\/tr>
XLY<\/a><\/td>Consumer Discretionary Select Sector SPDR<\/td>-5.1%<\/td>79.0<\/td>80.0<\/td>-1.3%<\/td><\/tr>
XLP<\/a><\/td>Consumer Staples Select Sector SPDR<\/td>-1.8%<\/td>71.0<\/td>71.0<\/td>0.0%<\/td><\/tr>
XLE<\/a><\/td>Energy Select Sector SPDR<\/td>2.4%<\/td>76.0<\/td>75.5<\/td>0.7%<\/td><\/tr>
XLF<\/a><\/td>Financial Select Sector SPDR<\/td>-0.8%<\/td>70.5<\/td>71.5<\/td>-1.4%<\/td><\/tr>
XLV<\/a><\/td>Health Care Select Sector SPDR<\/td>-1.5%<\/td>77.0<\/td>78.5<\/td>-1.9%<\/td><\/tr>
XLI<\/a><\/td>Industrial Select Sector SPDR<\/td>0.5%<\/td>71.5<\/td>72.5<\/td>-1.4%<\/td><\/tr>
XLB<\/a><\/td>Materials Select Sector SPDR<\/td>0.9%<\/td>74.0<\/td>74.5<\/td>-0.7%<\/td><\/tr>
XLRE<\/a><\/td>The Real Estate Select Sector SPDR<\/td>-1.7%<\/td>79.0<\/td>73.5<\/td>7.5%<\/td><\/tr>
XLK<\/a><\/td>Technology Select Sector SPDR<\/td>-6.6%<\/td>81.5<\/td>81.0<\/td>0.6%<\/td><\/tr>
XLU<\/a><\/td>Utilities Select Sector SPDR<\/td>-0.5%<\/td>71.5<\/td>69.5<\/td>2.9%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: FactSet Research Systems and ETF Research Center. <\/em> <\/p>\n","protected":false},"excerpt":{"rendered":"

Performance review and valuation update for the week ending November 4, 2022.<\/p>\n","protected":false},"author":2,"featured_media":2131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[222,6],"tags":[22,49,202,259,137,4],"class_list":["post-2202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamentals","category-sector-etfs","tag-eem","tag-efa","tag-iwm","tag-mdy","tag-qqq","tag-spy","description-off"],"_links":{"self":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts\/2202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/comments?post=2202"}],"version-history":[{"count":12,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts\/2202\/revisions"}],"predecessor-version":[{"id":2215,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts\/2202\/revisions\/2215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/media\/2131"}],"wp:attachment":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/media?parent=2202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/categories?post=2202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/tags?post=2202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}