Good morning, and a Happy Monday to all! It is rare when we have a bounce in our step when Monday arrives. However, this morning’s news from Pfizer (PFE) and BioNTech (BTNX) on a potential vaccine showing over 90% efficacy, has been a welcome development for the markets (and society). We also have clarity on the election front, with Pennsylvania being called in favor of Joe Biden. The market is embracing the likelihood that the G.O.P. will hold the Senate, keeping tax policies in check. With this backdrop, let’s take a look at areas your peers were focusing on last week.
| TOP ETFS – BY ALL FAs (Total Traffic) Previous Week | Ticker | TOP ETFS BY FAs w/ AUM>$1B (Total Traffic) Previous Week | Ticker | TOP INDUSTRIES BY ALL FAs (Total Traffic) Previous Week | TOP ETF CATEGORIES BY ALL FAs (Total Traffic) Previous Week |
|---|---|---|---|---|---|
| SPDR S&P 500 ETF | SPY | VanEck Vectors Gold Miners ETF | GDX | Biotechnology | Large Cap Growth Equities |
| Invesco QQQ | QQQ | SPDR S&P 500 ETF | SPY | Drug Manufacturers – General | Leveraged Equities |
| ProShares UltraPro Short QQQ | SQQQ | iShares Russell 2000 ETF | IWM | Software – Application | Technology Equities |
| VanEck Vectors Gold Miners ETF | GDX | ProShares UltraPro Short QQQ | SQQQ | Internet Retail | Precious Metals |
| iShares Russell 2000 ETF | IWM | Invesco QQQ | QQQ | Drug Manufacturers – Specialty & Generic | Leveraged Volatility |
| SPDR Gold Trust | GLD | iShares MSCI Emerging Markets ETF | EEM | Auto Manufacturers | Alternative Energy Equities |
| Technology Select Sector SPDR Fund | XLK | Financial Select Sector SPDR Fund | XLF | Credit Services | All Cap Equities |
| ProShares Ultra VIX Short-Term Futures | UVXY | iShares Core S&P Mid-Cap ETF | IJH | Diagnostics & Research | Materials |
| iShares Silver Trust | SLV | SPDR S&P Regional Banking ETF | KRE | Internet Content & Information | Health & Biotech Equities |
| ARK Innovation ETF | ARKK | ARK Innovation ETF | ARKK | Consumer Electronics | Small Cap Growth Equities |
| Financial Select Sector SPDR Fund | XLF | Invesco DB US Dollar Index Bullish Fund | UUP | Software – Infrastructure | Volatility |
| Invesco Solar ETF | TAN | Global X Video Games & Esports ETF | HERO | Semiconductors | Large Cap Blend Equities |
| SPDR Dow Jones Industrial Average ETF | DIA | Invesco Solar ETF | TAN | Oil & Gas E&P | Asia Pacific Equities |
| iShares MSCI Emerging Markets ETF | EEM | Global X Lithium ETF | LIT | Specialty Industrial Machinery | Energy Equities |
| iShares Core S&P Mid-Cap ETF | IJH | ARK Genomic Revolution ETF | ARKG | Medical Devices | China Equities |
| Energy Select Sector SPDR Fund | XLE | iShares Core U.S. Aggregate Bond ETF | AGG | Electrical Equipment & Parts | Leveraged Commodities |
| ProShares UltraPro QQQ | TQQQ | iShares Global Clean Energy ETF | ICLN | Leisure | Small Cap Blend Equities |
| Schwab U.S. Large-Cap Value ETF | SCHV | Invesco Financial Preferred ETF | PGF | Conglomerates | Financials Equities |
| ARK Industrial Innovation ETF | ARKQ | First Trust Nasdaq Bank ETF | FTXO | Aerospace & Defense | Consumer Discretionary Equities |
| iPath Series B S&P 500 VIX Short-Term Futures ETN | VXX | Global X Internet of Things Thematic ETF | SNSR | Utilities – Regulated Electric | Government Bonds |
Policy under President-elect Biden will be favorable for alternative energy. It is not a surprise that we see continued interest in solar and clean energy. The Invesco Solar ETF (TAN) was a top search for All Financial Advisors (#12), FAs >$1bln in AUM (#13) and Alternative Energy Equities was #6 in Top ETF categories for All FAs. The question for FAs will be, does the valuation at these levels continue to make sense? Early indications are that interest remains as TAN is breaking out above resistance to a fresh all-time high. Holding these gains will be a key read for FAs.
Policy around China will also be in focus. This has remained a key search for FAs with the iShares MSCI Emerging Markets ETF (EEM) remaining a top search, coming in at #14 in the Overall FA search and #6 for FAs with >$1bln AUM. Chinese equities were #15 in the Top ETF Categories. China has been the strongest economic performer over the past couple of months which has attracted investment. This was further emphasized over the weekend with a strong trade report.
The Pharmaceutical community is another area that has been scrutinized by FAs. A quick glance at the Top Industry Searches shows Biotechnology (#1), Drug Manufacturers- General (#2), Drug Manufacturers- Specialty & Generic (#5), Diagnostic & Research (#8) and Medical Devices (#15) garnered attention. Following the PFE/BNTX news and potential change to healthcare policies, this should continue to be a volatile space.
One last name we wanted to put on your radar was the Global X Video Games & Esports ETF (HERO). The vaccine news has put some pressure on the group as it has been a ‘Covid winner’. Tomorrow, Microsoft (MSFT) starts selling its new Xbox Series. Two days later, Sony (SNE) launches its PlayStation 5. The launch of these consoles around the Holiday season will be closely monitored. Publishers like Activision (ATVI), Electronic Arts (EA), Take-Two Interactive (TTWO) and Ubisoft (UBSFY) are other names to watch. We will also want to observe GameStop (GME) which recently announced a partnership with MSFT.