Peers Reducing Beta in Uncertain Times - InvestingChannel

Peers Reducing Beta in Uncertain Times

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

1Metal Fabrication
2Rental & Leasing Services
3REIT – Residential

TOP ETF CATEGORIES BY ALL FAs (Surge Traffic) This Week

1Agricultural Commodities
2Precious Metals
3Japan 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 TrafficTickerTop ETFs Researched by FAs w/ AUM>$1B – Surge TrafficTickerTop Industries Researched by Financial Advisors – Surge TrafficTop ETF Categories Researched by Financial Advisors – Surge Traffic
Vanguard Tax-Exempt Bond Index ETFVTEBARK Web x.0 ETFARKWMetal FabricationAgricultural Commodities
VanEck Vectors Pharmaceutical ETFPPHInvesco QQQQQQRental & Leasing ServicesPrecious Metals
Invesco S&P 500? Pure Growth ETFRPGARK Innovation ETFARKKREIT – ResidentialJapan Equities
Invesco Dividend Achievers? ETFPFMVanguard High Dividend Yield ETFVYMElectronic ComponentsPreferred Stock/Convertible Bonds
Vanguard Small Cap Growth ETFVBKVanguard Healthcare ETFVHTEntertainmentAll Cap Equities
Invesco S&P 500? Low Volatility ETFSPLViShares 7-10 Year Treasury Bond ETFIEFReal Estate ServicesNational Munis
ProShares UltraPro Short Dow30SDOWiShares MSCI Emerging Markets ETFEEMMotion picture and video productionCorporate Bonds
Direxion Daily Gold Miners Bull 2X SharesNUGTiShares Core S&P Mid-Cap ETFIJHOrdnance & Accessories, (No Vehicles/Guided Missiles)Transportation Equities
ETFMG Prime Cyber Security ETFHACKInvesco DB US Dollar Index Bullish FundUUPOil & Gas Refining & MarketingSmall Cap Value Equities
iShares 1-3 Year Treasury Bond ETFSHYiShares Core U.S. Aggregate Bond ETFAGGComputer HardwareLeveraged Real Estate
Vanguard Healthcare ETFVHTARK Fintech Innovation ETFARKFInformation Technology ServicesTotal Bond Market
Global X Cloud Computing ETFCLOUARK Industrial Innovation ETFARKQResorts & CasinosReal Estate
Vanguard Intermediate-Term Treasury ETFVGITiShares Core S&P Small-Cap ETFIJRDiscount StoresHigh Yield Bonds
ARK Fintech Innovation ETFARKFVanEck Vectors Gold Miners ETFGDXTelephone and telegraph apparatusBuilding & Construction
Vanguard Intermediate-Term Corporate Bond ETFVCITSPDR S&P 500 ETFSPYDepartment StoresEurope Equities
SPDR Barclays Capital Convertible Bond ETFCWBPackaging & ContainersConsumer Staples Equities
First Trust North American Energy Infrastructure FundEMLPSpecialty Industrial MachineryPrecious Metals
ProShares UltraShort QQQQIDAerospace & DefenseHealth & Biotech Equities
RiverFront Strategic Income FundRIGSCutlery, Handtools & General HardwareChina Equities
Direxion Daily Aerospace & Defense Bull 3X SharesDFENInternet Content & InformationGovernment Bonds

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