Commodities at the Forefront as Elections Loom - InvestingChannel

Commodities at the Forefront as Elections Loom

TOP ETFS – BY ALL FAs (Total Traffic) Previous WeekTickerTOP ETFS BY FAs w/ AUM>$1B (Total Traffic) Previous WeekTickerTOP INDUSTRIES BY ALL FAs (Total Traffic) Previous Week TOP ETF CATEGORIES BY ALL FAs (Total Traffic) Previous Week
SPDR S&P 500 ETFSPYSPDR S&P 500 ETFSPYBiotechnologyLarge Cap Growth Equities
Invesco QQQQQQiShares Russell 2000 ETFIWMInternet Content & InformationLeveraged Equities
ProShares Ultra VIX Short-Term FuturesUVXYVanEck Vectors Gold Miners ETFGDXSoftware – ApplicationTechnology Equities
ProShares UltraPro Short QQQSQQQInvesco QQQQQQAuto ManufacturersLeveraged Volatility
iPath Series B S&P 500 VIX Short-Term Futures ETNVXXProShares Ultra VIX Short-Term FuturesUVXYConsumer ElectronicsPrecious Metals
ProShares UltraPro QQQTQQQDirexion Daily Gold Miners Bull 2X SharesNUGTCredit ServicesAll Cap Equities
SPDR Dow Jones Industrial Average ETFDIASPDR Gold TrustGLDInternet RetailVolatility
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iShares Russell 2000 ETFIWMSPDR S&P Regional Banking ETFKRESoftware – InfrastructureHealth & Biotech Equities
iShares Silver TrustSLViShares MSCI Emerging Markets ETFEEMSemiconductorsMaterials
VanEck Vectors Gold Miners ETFGDXiShares Silver TrustSLVSpecialty RetailSmall Cap Growth Equities
ARK Innovation ETFARKKEnergy Select Sector SPDR FundXLEDrug Manufacturers – Specialty & GenericEnergy Equities
iPath S&P 500 Dynamic VIX ETNXVZGlobal X Lithium ETFLITMedical DevicesGovernment Bonds
Technology Select Sector SPDR FundXLKiShares Core S&P Mid-Cap ETFIJHEntertainmentOil & Gas
Energy Select Sector SPDR FundXLEHealth Care Select Sector SPDR FundXLVAerospace & DefenseLarge Cap Blend Equities
iShares Edge MSCI USA Momentum Factor ETFMTUMiShares Core MSCI International Developed Markets ETFIDEVUtilities – Regulated ElectricAsia Pacific Equities
iShares 20+ Year Treasury Bond ETFTLTInvesco Global Listed Private Equity ETFPSPConglomeratesConsumer Discretionary Equities
Invesco Solar ETFTANProShares Short 20+ Year TreasuryTLTOil & Gas E&PLeveraged Commodities
Direxion Daily Aerospace & Defense Bull 3X SharesDFENTechnology Select Sector SPDR FundXLKSpecialty Industrial MachineryChina Equities
SPDR S&P Biotech ETFXBIKraneShares CSI China Internet ETFKWEBScientific & Technical InstrumentsFinancials Equities

A Happy Monday to all! Markets are off to a strong start on Election Day Eve. There are a multitude of theories for the early rally, but the anticipation of election results materializing is encouraging. It is interesting to see how your peers were preparing for a busy week that includes, not only elections, but also the latest PMI sentiment data, a Fed meeting, and the release of October jobs number.

November is the month that kicks-off holiday decorations and music, and when ‘Black Friday’ turns into ‘Black Q4’. That is why a look into this week’s searches by Financial Advisors had me thinking of the song ‘Silver and Gold’, famously sung by the prospector Yukon Cornelius in Rudolph the Red Nose Reindeer. Precious metals searches dominated among FAs with >$1 bln in assets (Ranking GDX #3, GLD #7 and SLV #11) as well as the broader FA population (GLD #8, SLV #10, and GDX #11). Precious Metals also emerged on the Top ETF Categories searched by FAs (#5).

The price action in gold suggests that FAs are still in a shopping phase. Despite being heavily researched, Gold ETF (GLD) was down -1.4% on the week. Some of the weakness can be attributed to a stronger dollar which was seeing a haven bid and a boost from a weaker euro which makes up 57% of the DXY basket. The latest CFTC data released on Friday showed large speculators had reduced their bullish net positions in gold futures. At the same time, we are seeing the key September support levels in both gold ETFs and futures tested. Given the focus on gold by your FAs and the huge macro implications for this week, investors need to have these ETFs on their radar.

Silver is a little more interesting as the iShares Trust Silver ETF (SLV) has been persistent in attracting advisor interest. SLV enjoyed a huge run from its March lows, rallying from $11 to $27 in early August. The commodity has since been faltering as it drifted below its 50-sma back in late September. This is also testing key support levels around the $21 area. Like gold, FAs are closely watching this price action.

Perhaps prospectors are waiting for Mr. Cornelius to lick his pick ax and give the ‘all-clear’ that the 800-pound Abominable snow men have left the room. But until then, it is evident that silver and gold will be a focus of financial professionals.

Other names of interest:

  • UVXY (#3 overall, #5 AUM over $1 bln) – Volatility remains a concern for FAs.
  • LIT (#13 AUM >$1 bln)- Electric Vehicles have been a popular focus for advisors but this is the first time we have seen the battery ETF hit our Top 20 list.
  • DFEN (#15 Overall FAs)- This is the 3x Bull ETF for Aerospace & Defense which suggests expectations of some volatility in the space around elections.

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