Advisors Looking East and Going for Gold

It can be difficult to get the motor started on a Monday, especially when the weather starts to turn unpredictably tempestuous. Just ask anyone you know in Colorado that witnessed a snowstorm mere hours after wildfires. It’s not always that turbulence in the climate aligns to turbulence in the markets, but it appears for this past week (and upcoming one) that may be the case. A prevalent sell-off is greeting market participants ahead of the busiest week of earnings, an uptick in Covid case and of course, an election next week. Last week, we covered the research patterns of Advisors that suggested a reduction in risk while finding a premium in liquidity. Therefore, this early buyers strike should not come as a surprise to readers of this newsletter.

Research trends from last week continued to highlight risk aversion in markets, particularly here in the United States. Gold remained a key search item for Financial Advisors and clients. The Van Eck Gold Miners ETF (GDX) was a top search for both FAs with over $1 bln in AUM (#3) and all FAs (#4). The Spider Gold Trust ETF (GLD) also found itself the subject of heavy search traffic as it registered at #16 in both polls. Couple in other risk averse ETFs like the Dollar Bull (UUP), the ProShare Ultra Short QQQ (SQQQ), and the Vanguard Dividend Appreciation ETF (VIG) and we see the picture of a market proceeding with caution.

TrackStarIQ Data

TOP ETFS – BY ALL FAs (Total Traffic) Previous Week

RANKTICKER
4GDX
6SQQQ
9EEM

TOP ETFS BY FAs w/ AUM>$1B (Total Traffic) Previous Week

RANKTICKER
3GDX
4EEM
8XLF

TOP INDUSTRIES BY ALL FAs (Total Traffic) Previous Week

RANKINDUSTRY
1Biotechnology
5Internet Content & Information
10Oil & Gas E&P

TOP ETF CATEGORIES BY ALL FAs (Total Traffic) Previous Week

RANKCATEGORY
1Large Cap Growth Equities
9Leveraged Volatility
11Volatility

There were two areas under scrutiny that caught our interest. The first was the heavy search activity in the iShares Trust MSCI Emerging Market (EEM) which was the 9th most searched ETF by All FAs and the fourth hottest for FAs with over $1 bln in assets.This is an ETF that is dominated by Asia Pacific internet players (making up ~75% of the ETF, China is 41%). This displayed interest search, in addition to that of UUP and gold, could convey worries around the U.S. markets (stimulus, elections, tech valuations/regulation). The second area of interest was the rise in searches around the banks with the Spider Select Financials ETF (XLF) and the Spider Regional Bank ETF (KRE) both being prominent fields of research in the FA managing over $1 Billion in Assets category. A rise in interest rates, which has a 0.78 correlation with the XLF over the past two weeks, has led to interest in the sector.

The two suggest a contrasting style as we see searches overseas and in the financial bloodline of the United States. It does provide some insight into the market psyche though as it shows us that FAs are stepping back from the buy button, but continue to shop for value plays to add once we begin to see some stability and clarity restored.

Top ETFs Researched by Financial Advisors – Total TrafficTickerTop ETFs Researched by FAs w/ AUM>$1B – Total TrafficTickerTop Industries Researched by Financial Advisors – Total TrafficTop ETF Categories Researched by Financial Advisors – Total Traffic
SPDR S&P 500 ETFSPYSPDR S&P 500 ETFSPYBiotechnologyLarge Cap Growth Equities
Invesco QQQQQQInvesco QQQQQQSoftware – ApplicationLeveraged Equities
SPDR Portfolio S&P 500 ETFSPYGVanEck Vectors Gold Miners ETFGDXAuto ManufacturersPrecious Metals
VanEck Vectors Gold Miners ETFGDXiShares MSCI Emerging Markets ETFEEMCredit ServicesTechnology Equities
iShares Russell 2000 ETFIWMiShares Russell 2000 ETFIWMInternet Content & InformationAlternative Energy Equities
ProShares UltraPro Short QQQSQQQSPDR Portfolio S&P 500 ETFSPYGDiagnostics & ResearchAll Cap Equities
Invesco Solar ETFTANiShares Core S&P Mid-Cap ETFIJHInternet RetailMaterials
Direxion Daily Gold Miners Bull 2X SharesNUGTFinancial Select Sector SPDR FundXLFConglomeratesLeveraged Volatility
iShares MSCI Emerging Markets ETFEEMInvesco DB US Dollar Index Bullish FundUUPAerospace & DefenseHealth & Biotech Equities
ARK Innovation ETFARKKSPDR S&P Regional Banking ETFKREOil & Gas E&PSmall Cap Growth Equities
iShares Silver TrustSLVARK Innovation ETFARKKSemiconductorsVolatility
Financial Select Sector SPDR FundXLFARK Genomic Revolution ETFARKGConsumer ElectronicsEnergy Equities
ARK Genomic Revolution ETFARKGInvesco Solar ETFTANSpecialty Industrial MachineryLeveraged Commodities
SPDR Dow Jones Industrial Average ETFDIAGlobal X Cloud Computing ETFCLOUSpecialty RetailConsumer Discretionary Equities
Vanguard Dividend Appreciation ETFVIGUltraShort Barclays 20+ Year TreasuryTBTDrug Manufacturers – Specialty & GenericGovernment Bonds
SPDR Gold TrustGLDSPDR Gold TrustGLDSoftware – InfrastructureFinancials Equities
SPDR S&P Regional Banking ETFKREVanguard Healthcare ETFVHTMedical DevicesAsia Pacific Equities
ProShares Ultra SilverAGQARK Fintech Innovation ETFARKFEntertainmentIndustrials Equities
Credit Suisse X-Links Crude Oil Shares Covered Call ETNUSOIProShares Ultra VIX Short-Term FuturesUVXYSolarLarge Cap Blend Equities
ARK Web x.0 ETFARKWETFMG Alternative Harvest ETFMJScientific & Technical InstrumentsOil & Gas

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