Advisors in Focus- November 25, 2020

Let us be among the first to wish you and yours a Happy Thanksgiving. While traditions will be a little different this year, your typical Thanksgiving holiday has friends and family gather for a massive feast. This can lead to some overeating and, when there is too much turkey and tryptophan, an after dinner nap. Given the recent rally in markets, it is not impracticable to suggest that market participants have gorged themselves on equities, setting the market up for an end of the year nap. However, there are some searches we are seeing by Financial Advisors that suggest a healthier broad market run.

Over the past couple of years, rallies have generally been driven by the big tech FAANG players. Market participants like to see a wide breadth in market rallies. This time we are seeing beaten down value and cyclical plays (Re-Opening Trade) as key drivers. Financial Advisors are paying particular attention to performance in small and mid caps. Coming in at #5 in searches by All Financial Advisors is the WisdomTree U.S. Mid-Cap ETF (EZM).

  • Trivia Question- Whether it is your backyard Turkey Bowl or the NFL, football is a part of Thanksgiving Day for many Americans. What year was the first Thanksgiving football game played?

TrackStarIQ Data

Here are some highlights of research surges* this week –

TOP ETFS – BY ALL FAs (Surge Traffic) This WeekTickerTOP STOCKS BY ALL FAs (Surge Traffic) This WeekTickerTOP INDUSTRIES BY ALL FAs (Surge Traffic) This Week TOP ETF CATEGORIES BY ALL FAs (Surge Traffic) This Week
iShares Edge MSCI Intl Quality Factor ETFIQLTYunji IncYJMiscellaneous Manufacturing IndustriesLong-Short
Global X Autonomous & Electric Vehicles ETFDRIVGreen Plains IncGPREBuilding MaterialsCorporate Bonds
Invesco Active U.S. Real Estate FundPSREcmoho Ltd ADRMOHODiversified IndustrialsMetals
SPDR Blackstone/ GSO Senior Loan ETFSRLNBsr Real Estate Invt TrBSRTFData processing and preparationTransportation Equities
WisdomTree US MidCap Earnings ETFEZMOrion Energy SystOESXAuto & Truck DealershipsEurope Equities
ETFMG Prime Cyber Security ETFHACKEagle Materials IncEXPOil and gas exploration servicesPrecious Metals
Direxion Daily Regional Banks Bull 3X SharesDPSTFuel Tech IncFTEKBeverages – BrewersMid Cap Blend Equities
Xtrackers Harvest CSI 300 China A-Shares FundASHRFirst Merchants CorpFRMEMarine ShippingForeign Small & Mid Cap Equities
iShares MSCI China ETFMCHIFreddie MacFMCCFederal and federally sponsored creditLarge Cap Value Equities
ProShares Investment Grade-Interest Rate HedgedIGHGHybrid Energy Holdings, Inc.HYBECommunications equipment, miscBuilding & Construction
Schwab U.S. Broad Market ETFSCHBCruzani Inc.CZNIComputer integrated systems designCurrency
First Trust Small Cap Core AlphaDEX FundFYXMeritor IncMTORServices-Personal ServicesHigh Yield Bonds
iShares Convertible Bond ETFICVTCyclo3pss Corp.OZONGold oresChina Equities
First Trust Health Care AlphaDEX FundFXHCanada Goose Holdings IncGOOSEngineering & ConstructionGlobal Equities
Invesco Dynamic Pharmaceuticals ETFPJPJNS Holdings CorporationJNSHBroadcastingConsumer Discretionary Equities
First Trust International IPO ETFFPXIXinyuan Real Estate CO LtdXINInsurance – DiversifiedMLPs
iShares S&P GSCI Commodity-Indexed TrustGSGForesight Autonomous Holdings Ltd ADRFRSXWomen’s, Misses’, Children’s & Infants’ UndergarmentsInflation-Protected Bonds
Vanguard Small Cap Value ETFVBRCannapharmarx Inc.CPMDConglomeratesLarge Cap Blend Equities
ETFMG Travel Tech ETFAWAYInternational Endeavors CorpIDVVSolarTechnology Equities
First Trust Nasdaq Artificial Intelligence and Robotics ETFROBTChina Automotive SysCAASState commercial banksEnergy Equities

*- Surge data is based on the average traffic from the past two days compared to the average traffic from the previous market week. 

The EZM seeks to track the investment results in the mid-cap space. It provides FAs with a broad exposure to profitable mid-cap companies. It is well diversified, 542 components, with the Top 10 holdings representing only 8.86% of the portfolio. Financials represent the largest segment at 22.5% followed by Consumer Discretionary (21%), Industrials (19%), Information Technology (8%). The ETF has an expense ratio of 0.38% and provides a distribution yield of 1.28%. It has been an underperformer with a -12% return over the past year but it has averaged an annual return of 6.56% since the fund’s inception in 2007. FAs are looking for this to revert to its prior returns after a difficult 2020.

Other names of interest:

  • Global X Autonomous ETF (DRIV)- #2 in Top ETFs for Surge Traffic for ALL FAs. The EV space has remained a hot topic for market participants. The lighter holiday volume has allowed day traders to drive volatility in the space, making it reminiscent of the bitcoin trading we saw back in December of 2017.
  • Yunji (YJ)- #1 in Top Stocks by ALL FAs. The company is scheduled to report earnings tomorrow. It is a Chinese-based e-commerce company (peers- BABA, JD, BZUN, DADA). The company signed a Cooperative Framework Agreement with Douyan’s e-commerce business. 
  • Schwab U.S. Broad Market ETF (SCHB)- #11 in Top ETFs for Surge Traffic for ALL FAs. The fund tracks the total returns of the Dow Jones Broad Market Index. It is designed to provide a comprehensive measure of large-cap, mid-cap, and small-cap U.S. equities.

Trivia Answer- Yale and Princeton played the first Thanksgiving football game back in 1876. A few years later it became tradition for the college football championship to be held on the holiday.

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