In today’s Morning Lineup, we showed an update of our ETF Performance Matrix, which summarized the performance of key ETFs across asset classes on a YTD and MTD basis as well as since the March 23rd low. In looking through the matrix, it’s clear that much of the declines that equities have seen since the start of September have been a reversal of what we saw for equities coming off the March lows through now. As noted, the Nasdaq has been underperforming small caps this month, value has been outperforming growth across all market cap ranges, and international stocks are mostly outperforming US equities. From the March lows through the start of September, though, it was the Nasdaq, growth, and US stocks that were outperforming the small caps, value, and international stocks.
One way to illustrate this relationship is in a scatter plot below comparing the performance of each equity-related ETF in the matrix from the lows on 3/23 (y-axis) versus their performance in September through Tuesday’s close (x-axis). Looking at it this way, there is a pretty clear inverse relationship between performance over these two time periods. As another example, the top ten performing of the 50 equity related ETFs in the matrix so far this September had an average rank of 36 in their performance off the March lows. Conversely, the ten worst performing ETFs in the Matrix so far this month had an average rank of 16 in their performance of the march lows. Every dog has their day, and the ‘dogs’ of the market off the March lows have been holding up very well on a relative basis so far in September. Click here to view Bespoke’s premium membership options for the best market analysis available.