Cannabis, clean energy and commodities: ETF themes to look at as 2021′s first quarter involves a close
Since the U.S. investment that is exchange-traded nears $6 trillion in assets under management, one market manufacturer claims a few hot trades are dominating investors’ attention.
“Clean energy remains really active. And what’s interesting are the marijuana ETFs are active additionally, acutely active,” Harry Whitton, head of ETF income trading at Old Mission, told CNBC’s “ETF Edge” this week. “Both of the ended the season very good, and on any provided day, whenever energy that is tidy up, marijuana’s up.”
Cannabis ETFs have actually mostly built on their 2020 gains, along with the greatest funds up between 48% and 78% to date this year.
The teams’ day-to-day correlation is probably a side-effect of the resurgence that is stock-picking cannabis manager that is ETF Seymour told CNBC in a Friday email.
He runs the Amplify Seymour Cannabis ETF (CNBS) and may be the founder and chief investment officer of Seymour site Management.
“Clean energy (and associated SPACs) and cannabis have actually exchanged with high correlation because of the hefty interest that is retail and momentum drivers overall around retail,” Seymour published, incorporating that “a few decent-sized hedge funds” have been investing around both designs.
Commodities have also found a spot at the center of investors attention that is’ Old Mission’s Whitton said.
“We’re seeing broad-based commodities get yourself a amount that is big of, symbols like PDBC, DBC, COMT,” he said. “People are searching during the trade that is reopening and there’s a usage that is big of commodities, therefore, that’s an area performing well.”
Gold and opportunities that are high-yield but, are falling out in clumps of style, Whitton stated.
“We’re seeing outflows in silver and yield that is high emerging-market bonds, as interest rates increase,” he claimed. “All three of the are seeing outflows on quite a consistent basis.”
Whitton’s thing that is very important? Thematic ETFs are “still really, actually that is hot and for the time that is present the likelihood is to remain because of this.