Advisors in Focus- November 18, 2020

Happy Hump Day! Market participants have been treated to a choppy ride as we continue to digest vaccine ‘hope’ headlines against the reality of the current situation. This has established a rotation pattern with starts and stops, leading to a key inflection point in market behavior and one that has Financial Advisors watching the action closely. The Moderna (MRNA) headlines from Monday continue to linger and Pfizer (PFE) was able to produce another round of statistically encouraging and significant data around its vaccine. How has this impacted FA research behavior this week?

  • Trivia Question- Tesla (TSLA) will enter the S&P on December 21. Which GICS Sector will it be included in and who is the current dominant player in that sector?

If we were looking for one overarching theme in this choppy market, it would fall under research around real estate. A quick look at the 2020 underperformers shows REITs as a laggard, down 9% year to date (Banks and Energy were two other notable laggards). The impact from Covid has led to a monumental change in philosophy around both commercial and residential properties. Uncertainty has led to an aversion to REITs. The recent vaccine headlines and price action suggests FAs are finding more clarity in the situation. Coming in at #3 on our Top ETF for All FA surges was the iShares U.S. Core U.S. REIT ETF (USRT) which tracks the investment results of an index of U.S. real estate (Equities include: PLD, EQIX, DLR, PSA and WELL) and recently broke through key resistance.

TOP ETFS – BY ALL FAs (Surge Traffic) This WeekTickerTOP ETFS BY FAs w/ AUM>$1B (Surge Traffic) This WeekTickerTOP INDUSTRIES BY ALL FAs (Surge Traffic) This Week TOP ETF CATEGORIES BY ALL FAs (Surge Traffic) This Week
Invesco S&P SmallCap 600? Pure Growth ETFRZGARK Genomic Revolution ETFARKGWholesale-Groceries & Related ProductsGlobal Real Estate
iShares 7-10 Year Treasury Bond ETFIEFiShares MSCI Global Silver Miners ETFSLVPInsurance – ReinsuranceEmerging Markets Bonds
iShares Core U.S. REIT ETFUSRTFirst Trust Capital Strength ETFFTCSWaste ManagementLeveraged Real Estate
Vanguard Consumer Discretionary ETFVCRFirst Trust Small Cap Growth AlphaDEX FundFYCMedical DistributionWater Equities
Invesco S&P 500? Pure Growth ETFRPGProShares Ultra VIX Short-Term FuturesUVXYMetal FabricationOil & Gas
iShares MSCI Global Silver Miners ETFSLVPARK Innovation ETFARKKIndustrial Metals & MineralsConsumer Staples Equities
VanEck Vectors Green Bond ETFGRNBDirexion Daily Gold Miners Bull 2X SharesNUGTBusiness services, miscPreferred Stock/Convertible Bonds
First Trust Dorsey Wright International Focus 5 ETFIFVFirst Trust NASDAQ CEA Cybersecurity ETFCIBRTrusts, miscVolatility Hedged Equity
Invesco S&P 500? Low Volatility ETFSPLVETFMG Prime Junior Silver ETFSILJLaboratory apparatus and furnitureConsumer Discretionary Equities
Reality Shares Nasdaq NexGen Economy ETFBLCNInvesco DB US Dollar Index Bullish FundUUPFarm & Heavy Construction MachineryVolatility
Vanguard Global ex-U.S. Real Estate Index Fund ETFVNQIFirst Trust Amex Biotechnology IndexFBTREIT – RetailReal Estate
United States Natural Gas FundUNGFirst Trust Dorsey Wright Focus 5 ETFFVTools & AccessoriesForeign Small & Mid Cap Equities
ETFMG Prime Mobile Payments ETFIPAYGlobal X Video Games & Esports ETFHEROOther Industrial Metals & MiningInverse Equities
VanEck Vectors ChinaAMC China Bond ETFCBONDaily Dow Jones Internet Bull 3X SharesWEBLElectrical Equipment & PartsAgricultural Commodities
First Trust Small Cap Growth AlphaDEX FundFYC Auto ManufacturersLarge Cap Value Equities
First Trust Capital Strength ETFFTCS Plastics products, miscSmall Cap Growth Equities
Invesco Aerospace & Defense ETFPPA Discount StoresCommodities
First Trust Emerging Markets Small Cap AlphaDEX FundFEMS Scientific & Technical InstrumentsTotal Bond Market
Global X SuperDividend U.S. ETFDIV Prepackaged softwareForeign Large Cap Equities
Invesco S&P MidCap Low Volatility ETFXMLV National commercial banksPreferred Stock/Convertible Bonds

Other themes that garnered interest include:

  • Blockchain- Bitcoin is seeing the same momentum we saw back in December of 2017. FAs have shown more of an inclination to take a look at the backing technology via the Reality Shares NexGen Economy ETF (BLCN). This tracks the blockchain piece of digital currency.
  • Global REITs- The search for yield in real estate has not been limited to the U.S. The Vanguard Global ex-U.S. Real Estate ETF (VNQI) was #11 in the All FA surge list. Global Real Estate was #1 in the Top ETF Categories by All FAs.
  • Medical Distribution- We saw plenty of the headlines around PFE and MRNA. An area were FAs are looking at is Medical Distribution as this Industry came in at #4 in FA surge research. 
  • Aerospace & Defense- Building on our theme from Monday, we see the Invesco Aerospace & Defense ETF (PPA). Similar holding to the ITA and DFEN, however, the largest holding here is Boeing (BA). This company finally received FAA approval for its 737 MAX today. 

Trivia Answer- TSLA will be added into the Consumer Discretionary sector. Also watch the XLY where AMZN has a 21% weighting.

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