Mutual Fund Reports
Published: Aug 30, 2024
This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.

Portfolio View - Major Market ETFs

 

Featured Chart: iShares MSCI EAFE ETF (EFA) 

The iShares MSCI EAFE ETF (EFA) drifted up this week, breaking through significant resistance at $82 dating back to 2021, completing a spread quintuple top in the process. Over the last sixty-days, EFA has risen by 5.77%, more than doubling the return of the S&P 500 (SPX) during this time span. EFA’s rally from August lows now leaves it at its highest price since 2007, placing it above the middle of its trading band at 60% overbought.

Despite its recent breakout, EFA has lagged the market year to date, and has remained on a RS sell signal versus the S&P 500 Equal Weighted Index (SPXEWI) since 2009. EFA also holds an unacceptable 2.85 fund score, the lowest of any market ETF besides the iShares Frontier and Select EM ETF (EEM). Relative strength continues to favor domestic equities, which is further confirmed by its substantial lead in DALI Asset Class Rankings. Support does not start until $74, but previous resistance at $82 could serve as new support. Those looking to add international exposure may be best suited to focus on concentrated areas of strength.

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