Advisors in Focus, November 9, 2020

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 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 ETFSPYVanEck Vectors Gold Miners ETFGDXBiotechnologyLarge Cap Growth Equities
Invesco QQQQQQSPDR S&P 500 ETFSPYDrug Manufacturers – GeneralLeveraged Equities
ProShares UltraPro Short QQQSQQQiShares Russell 2000 ETFIWMSoftware – ApplicationTechnology Equities
VanEck Vectors Gold Miners ETFGDXProShares UltraPro Short QQQSQQQInternet RetailPrecious Metals
iShares Russell 2000 ETFIWMInvesco QQQQQQDrug Manufacturers – Specialty & GenericLeveraged Volatility
SPDR Gold TrustGLDiShares MSCI Emerging Markets ETFEEMAuto ManufacturersAlternative Energy Equities
Technology Select Sector SPDR FundXLKFinancial Select Sector SPDR FundXLFCredit ServicesAll Cap Equities
ProShares Ultra VIX Short-Term FuturesUVXYiShares Core S&P Mid-Cap ETFIJHDiagnostics & ResearchMaterials
iShares Silver TrustSLVSPDR S&P Regional Banking ETFKREInternet Content & InformationHealth & Biotech Equities
ARK Innovation ETFARKKARK Innovation ETFARKKConsumer ElectronicsSmall Cap Growth Equities
Financial Select Sector SPDR FundXLFInvesco DB US Dollar Index Bullish FundUUPSoftware – InfrastructureVolatility
Invesco Solar ETFTANGlobal X Video Games & Esports ETFHEROSemiconductorsLarge Cap Blend Equities
SPDR Dow Jones Industrial Average ETFDIAInvesco Solar ETFTANOil & Gas E&PAsia Pacific Equities
iShares MSCI Emerging Markets ETFEEMGlobal X Lithium ETFLITSpecialty Industrial MachineryEnergy Equities
iShares Core S&P Mid-Cap ETFIJHARK Genomic Revolution ETFARKGMedical DevicesChina Equities
Energy Select Sector SPDR FundXLEiShares Core U.S. Aggregate Bond ETFAGGElectrical Equipment & PartsLeveraged Commodities
ProShares UltraPro QQQTQQQiShares Global Clean Energy ETFICLNLeisureSmall Cap Blend Equities
Schwab U.S. Large-Cap Value ETFSCHVInvesco Financial Preferred ETFPGFConglomeratesFinancials Equities
ARK Industrial Innovation ETFARKQFirst Trust Nasdaq Bank ETFFTXOAerospace & DefenseConsumer Discretionary Equities
iPath Series B S&P 500 VIX Short-Term Futures ETNVXXGlobal X Internet of Things Thematic ETFSNSRUtilities – Regulated ElectricGovernment 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.

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