Daily Movers: South Korea EWY Sank 6.3%

Friday reflected a defensive rotation. South Korea EWY led the downside at -6.27%, and the market favored rate-sensitive and real-asset exposures over growth-linked risk. Emerging Markets EEM fell 1.97%, Semiconductors SMH slid 3.27%, Clean Energy ICLN dropped 3.21%, and High Yield JNK edged down 0.01%. Real Estate XLRE rose 2.22%, VNQ and REET gained 2.15% and 1.80%, Materials XLB advanced 1.93%, and Municipals MUB added 0.28%.

Equity: Real-asset sectors led, emerging markets lagged

Movers

Outperformers: Real Estate XLRE +2.22% (3M: +5.4%), Materials XLB +1.93% (3M: -0.7%)

Underperformers: South Korea EWY -6.27% (3M: +8.2%), Emg. Markets EEM -1.97% (3M: +2.1%)

3M Leaderboard

Strong: Value Factor VLUE +22.1%, Taiwan EWT +16.4%, Technology XLK +13.0%

Weak: Brazil EWZ -10.0%, Communication Services XLC -9.2%, Consumer Discretionary XLY -6.9%

Fixed Income: High-quality income led, corporate credit lagged

Movers

Outperformers: Muni Bonds MUB +0.28% (3M: -0.9%), Mortgage-Backed MBB +0.25% (3M: -1.0%)

Underperformers: Investment Grade Credit LQD -0.03% (3M: -1.9%), High Yield Bonds JNK -0.01% (3M: +0.2%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +0.2%, Global Bonds BNDX +0.1%, High Yield HYG +0.1%

Weak: Preferred Stock PFF -2.9%, Long Treasuries TLT -2.7%, Investment Grade Credit LQD -1.9%

Specialty: Real estate led, growth themes lagged

Movers

Outperformers: Real Estate VNQ +2.15% (3M: +6.5%), Global REITs REET +1.80% (3M: +7.4%)

Underperformers: Semiconductors SMH -3.27% (3M: +16.5%), Clean Energy ICLN -3.21% (3M: -11.5%)

3M Leaderboard

Strong: Semiconductors SMH +16.5%, Momentum Factor MTUM +11.2%, Biotechnology IBB +9.7%

Weak: Ethereum Trust ETHA -19.7%, Gold Miners GDX -18.4%, Bitcoin Trust IBIT -17.5%

Cross-Asset Read

Defensive rotation framed the session: three real-estate exposures rose, and four growth-linked risk proxies fell. The 3M structure is mixed, with VLUE at +22.1%, EWT at +16.4%, XLK at +13.0%, and SMH at +16.5% at the top of the field; XLRE at +5.4%, VNQ at +6.5%, and REET at +7.4% extended moderate uptrends, while SMH broke from its standing strength with a 3.27% decline. Compression clusters in EFA, EFAV, EWG, AGG, BNDX, EMB, DBMF, REET, and USMV, while LQD and MUB sit oversold; the cross-section is defensive, low-vol, and selective.

Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.