This Week in ETF Reports

VictoryShares Model Changes
Beginning with the VictoryShares (VS) Equity Rotation Model, the strategy sold the VictoryShares Dividend Accelerator ETF VSDA because it fell out of the top two positions in the model’s relative strength matrix and purchased the VictoryShares US Small Cap Volatility Wtd ETF CSA as it was the next highest-ranking fund not currently in the model. We observe a notable tailwind behind small-cap equities, present in CSA as well given its acceptable fund score of 3.20 and strongly positive score direction of 2.70. The VS Equity Rotation Model maintains a heavily tilt toward domestic equities yet leans toward small-cap value and small-cap blend exposure. This marks the model’s fifth trade this year.... (Read more)

Invesco Changes: GUGGEWSECT & POWER4
There are changes to two Invesco models this week. The DWA Sector 4 Model POWER4 bought the Invesco DWA Industrials Momentum ETF PRN and sold the Invesco DWA Basic Materials Momentum ETF PYZ. PYZ was removed from the model because materials fell out of the top four in the model’s sector rankings.  In place of PYZ, the model added PRN because industrials moved into the top four sectors in the rankings. In addition to industrials, the model also has exposure to consumer cyclicals, healthcare, and technology. This is the eleventh change to the model this year. Year-to-date (through 10/30), POWER4 has returned 2.1%, outpacing the S&P 500 SPX, which is up 1.21%, by about 90 basis points... (Read more)

ETF Highlight: iShares MSCI South Korea ETF (EWY)
There are no changes to any of the iShares models this week. As discussed in Tuesday’s report, We have recently seen strength in emerging markets as the iShares Emerging Markets ETF EEM has outperformed the S&P 500 SPX over the last month and the average score of the emerging markets group has moved above 4.0. From a geographical perspective, Asian Pacific countries have been one of the major drivers of the recent strength of emerging markets.... (Read more)