Mar. 29 at 4:42 PM
Equity ETFs Shifted Toward Defensive Leadership This Week
- Equity ETFs rotated defensively this week as dividend and value ETFs accelerated while growth ETFs decelerated.
- Breadth is thin with 4 of 17 ETFs holding positive 3-month momentum and the median below zero.
- Leaders are
$DVY and
$SDY and both are the only clear upside trends amid widespread negative momentum.
- Laggards are
$IWF and
$SPYG with growth 3-month momentum near the bottom of its 52-week range and delivering negative alpha.
- 3-month correlation against
$SPY is loosening for
$DVY versus its 1-year average while
$IWF and
$SPYG remain highly correlated to
$SPY and underperforming.
- Market participation is contracting and leadership is defensive as marginal improvements in some ETFs occur off depressed momentum levels, creating persistent alignment frictions.
