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Posted by on Dec 31, 2013 in AdvisorShares, Market Insight

AdvisorShares Weekly Market Review – Week Ending 12/27/2013

AdvisorShares Weekly Market Review – Week Ending 12/27/2013

Highlights of the Prior Week

Happy New Year!

In the abbreviated week ending December 27th, the markets continued their upward trajectory to new record highs, and the momentum is expected to continue through year-end, though on much lighter volume. The advance extended last week’s surge after the Federal Reserve said it would keep short-term interest rates very low, even as it would start unwinding its monthly asset purchases. The S&P 500 is up roughly 29% for the year to date, putting it on track for its best year since 1997.

Economic news was mainly positive, with a substantial 42,000 fall in New Jobless Claims, a 0.5% increase in Consumer Spending, Durable Goods Orders up 3.5%, and New Home Sales up 464,000. Earnings season begins January 8th, and volume is expected to rise to normal levels again. Expectations are for continued growth with some profit taking on high-flying stocks.

The big ETF winners, as would be expected with the continued bull run in equities, were in the S&P 500: SPDR S&P 500 (SPY) and iShares Core S&P 500 (IVV) gained roughly $6.48 billion and $1.96 billion, respectively. Two trends in ETFs on the losing side were small/mid-cap and growth funds. The biggest loser on the week was the Vanguard Mid-Cap ETF (VO), which lost over a billion dollars.

Of the top ten creation and top ten redemptions in ETFs, not one side included any significant asset flows in or out of fixed income ETFs last week.  VXX raked in almost $400 million in new assets as someone made a bet on a spike in short-term volatility and a similar dollar amount left GLD.  Gold has been the worst performing index as represented in the indices we track in table one as investors continue to exit the precious metal.  Year-to-date, GLD has lost $25 billion in net outflows according to data compiled by Index Universe.

Happy holidays, and stay tuned for updates in the New Year.


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Weekly ETF Flows

For December 23, 2013 to December 27, 2013

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S&P Sector Analysis

As for the sectors of the S&P 500, five outperformed the broad benchmark – Materials, Telecom, Energy, Technology and Industrials. The others– Discretionary, Financials, Healthcare, Staples and Utilities – all underperformed.  The dispersion between the top-performing and bottom-performing sectors grew to 2.53% this week, with Materials outperforming all, and Utilities coming in last.

For December 23, 2013 to December 27, 2013

Sector performances, as measured by the S&P 500 sector indices were:

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