On Monday, we discussed a noticeable change in advisor fund searches as the high flying alternative energy, electric vehicles and biopharma were giving way to searches on less riskier instruments. Surge data mid-week would suggest that pattern has continued. The search for yield is still on the table, but it would appear that FAs are also keeping an eye on safety ahead of a potentially volatile October that includes earnings season, elections, stimulus debates and Covid concerns. These search results could help explain the heavier sentiment we are seeing in the indices.
Some of the searches that are leading us to this inclusion is a pickup in bond, income and dividend funds. The top search in the ETFs was Vanguard’s Tax-Exempt Bond Index (VTEB). We also saw a notable increase in Invesco’s Dividend Achievers (PFM), Invesco’s S&P 500 Low Volatility (SPLV), iShares 1-3 Year Treasury Bond (SHY), Vanguard Immediate-Term Treasury (VGIT). This search for steadier returns in lower beta asset classes leads us to believe that FAs are willing to take the foot off the gas pedal and await greater clarity around key events.
TrackStarIQ Data
TOP ETFS – BY ALL FAs (Surge Traffic) This Week
TOP ETFS BY FAs w/ AUM>$1B (Surge Traffic) This Week
TOP INDUSTRIES BY ALL FAs (Surge Traffic) This Week
| RANK | INDUSTRY |
|---|---|
| 1 | Metal Fabrication |
| 2 | Rental & Leasing Services |
| 3 | REIT – Residential |
TOP ETF CATEGORIES BY ALL FAs (Surge Traffic) This Week
| RANK | CATEGORY |
|---|---|
| 1 | Agricultural Commodities |
| 2 | Precious Metals |
| 3 | Japan Equities |
We would note that this is not a full-on bearish declaration. There is a pause rather than a full turn on sentiment as FAs are still searching for alpha. The search for yield remains in play and with a focus on earnings led by searches in Entertainment and Motion Pictures (NFLX, T, VZ results this week) & Electronic Components (TXN, LRCX, XLNX, STM). We are also seeing the focus on election spaces with the VTEB search as well as Vanguard’s Healthcare (VHT) and Drixeon’s 3x Bull Aerospace and Defense (DFEN). We will continue to monitor these patterns as the market digests the list of uncertain events over the next couple of weeks
| Top ETFs Researched by Financial Advisors – Surge Traffic | Ticker | Top ETFs Researched by FAs w/ AUM>$1B – Surge Traffic | Ticker | Top Industries Researched by Financial Advisors – Surge Traffic | Top ETF Categories Researched by Financial Advisors – Surge Traffic |
|---|---|---|---|---|---|
| Vanguard Tax-Exempt Bond Index ETF | VTEB | ARK Web x.0 ETF | ARKW | Metal Fabrication | Agricultural Commodities |
| VanEck Vectors Pharmaceutical ETF | PPH | Invesco QQQ | QQQ | Rental & Leasing Services | Precious Metals |
| Invesco S&P 500? Pure Growth ETF | RPG | ARK Innovation ETF | ARKK | REIT – Residential | Japan Equities |
| Invesco Dividend Achievers? ETF | PFM | Vanguard High Dividend Yield ETF | VYM | Electronic Components | Preferred Stock/Convertible Bonds |
| Vanguard Small Cap Growth ETF | VBK | Vanguard Healthcare ETF | VHT | Entertainment | All Cap Equities |
| Invesco S&P 500? Low Volatility ETF | SPLV | iShares 7-10 Year Treasury Bond ETF | IEF | Real Estate Services | National Munis |
| ProShares UltraPro Short Dow30 | SDOW | iShares MSCI Emerging Markets ETF | EEM | Motion picture and video production | Corporate Bonds |
| Direxion Daily Gold Miners Bull 2X Shares | NUGT | iShares Core S&P Mid-Cap ETF | IJH | Ordnance & Accessories, (No Vehicles/Guided Missiles) | Transportation Equities |
| ETFMG Prime Cyber Security ETF | HACK | Invesco DB US Dollar Index Bullish Fund | UUP | Oil & Gas Refining & Marketing | Small Cap Value Equities |
| iShares 1-3 Year Treasury Bond ETF | SHY | iShares Core U.S. Aggregate Bond ETF | AGG | Computer Hardware | Leveraged Real Estate |
| Vanguard Healthcare ETF | VHT | ARK Fintech Innovation ETF | ARKF | Information Technology Services | Total Bond Market |
| Global X Cloud Computing ETF | CLOU | ARK Industrial Innovation ETF | ARKQ | Resorts & Casinos | Real Estate |
| Vanguard Intermediate-Term Treasury ETF | VGIT | iShares Core S&P Small-Cap ETF | IJR | Discount Stores | High Yield Bonds |
| ARK Fintech Innovation ETF | ARKF | VanEck Vectors Gold Miners ETF | GDX | Telephone and telegraph apparatus | Building & Construction |
| Vanguard Intermediate-Term Corporate Bond ETF | VCIT | SPDR S&P 500 ETF | SPY | Department Stores | Europe Equities |
| SPDR Barclays Capital Convertible Bond ETF | CWB | Packaging & Containers | Consumer Staples Equities | ||
| First Trust North American Energy Infrastructure Fund | EMLP | Specialty Industrial Machinery | Precious Metals | ||
| ProShares UltraShort QQQ | QID | Aerospace & Defense | Health & Biotech Equities | ||
| RiverFront Strategic Income Fund | RIGS | Cutlery, Handtools & General Hardware | China Equities | ||
| Direxion Daily Aerospace & Defense Bull 3X Shares | DFEN | Internet Content & Information | Government Bonds |