What just happened?
It’s The Trump Show and we’re just living in it. From the shocking news that the president tested positive for coronavirus and was checked into the Walter Reed National Military Medical Center for three nights, to his proclamation that there would be no fiscal stimulus, to his next-day reversal, President Donald Trump dominated the talk in markets over the past week.
We covered the ups, and the downs, for airline and travel-focused ETFs: a lot of turbulence, you might say. Also, the materials sector started to strengthen, and financials jumped as markets began to price in a Democratic sweep that could boost fiscal spending and reflate yields.
That’s reflected in weekly fund flows, shown at the bottom of this page. Bond funds sold off, but bank funds rallied.
Thanks for reading.
“A fascinating time to be an active manager”
A fund that launched in 2019 is having a terrific 2020. The Hoya Capital Housing ETF
initially branded itself as the only ETF to cover the entire housing market ecosystem, from builders to realtors to REITs to Home Depot. But it was struggling to gather assets. So in August, the fund’s founder, Alex Pettee, rebranded it to more directly compete with the two better-known “homebuilder” ETFs, the SPDR S&P Homebuilders ETF
and the iShares U.S. Home Construction ETF
both of which also are laden with stocks that aren’t homebuilders.
Among ETFs that picked up the most incoming money last month, there was only one actively managed fund in the top 20: ARK Invest’s flagship fund, the Innovation ETF
For all the recent excitement about “semitransparent” ETFs and “active non-transparent” ETFs, ARK’s founder, Cathie Wood, an unabashed and active stock picker, just happens to prefer the transparency that good old-fashioned ETFs provide.