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U.S. stocks were super steady in November on back-to-back upbeat vaccine update. While Pfizer and Moderna already charged-up markets up with their success in COVID-19 vaccine clinical trials at the start of the month, AstraZeneca (AZN) said on Nov 23 that its vaccine, developed in collaboration with the University of Oxford, showed an average 70% effectiveness. Plus, Sanofi (SNY), GlaxoSmithKline's (GSK) and Johnson & Johnson (JNJ) are also working hard in the COVID-19 vaccine field.
This raised hopes of a return to normalcy sooner than expected. Moreover, chances of a divided Congress in the United States, which means status quo and the likelihood of no major policy changes in the medium term, aided the equity rally. The dual tailwinds led investors to rotate into the beaten-down segments of the year — cyclicals. Moreover, the month of November also saw renewed stimulus hopes.
Moreover, NRF noted last week that the retail sector has witnessed a V-shaped recovery as aggregate retail sales have grown both sequentially and year over year each month since June. For the first 10 months of this year, retail sales were up 6.4% versus the first 10 months of 2019, per NRF. Overall, the retail sector is expected to log a “strong finish” to 2020 despite COVID-19. Already, consumers did record online shopping during the Cyber Weekend.
As a result, the S&P 500 (up 10.8%), the Dow Jones (up 11.8%), the Nasdaq Composite (up 11.8%) and the Russell 2000 (up 18.3%) — all put up a great show last month. The Dow Jones logged its best month since 1987 (and its best November since 1928).
Industrials and Financials sectors clocked their best month since April 2009 while the energy sector as represented by the ETF XLE saw its second-best month ever. Against this backdrop, below we highlight a few ETF areas that shot up at least 24% last month.
Energy
The coronavirus-led global slowdown weighed on oil demand. Mounting concerns over the second wave of coronavirus cases have threatened demand further in recent sessions. However, back-to-back vaccine news has boosted the global markets as well as brightened the demand outlook of the energy sector.
Spinnaker ETF Series Cannabis ETF (THCX) – Up 43.3%
Clean Energy
Biden has expansionary plans for clean energy. Biden is forming a plan — a Clean Energy Revolution — to address the issue of climate emergency. He sees America as becoming a 100% clean energy economy by 2035 and having net zero emission by 2050.
Biden has a $2-trillion-plan toward combating climate change that will eliminate carbon emissions from the power grid by 2035 and accelerate the uptake of electric vehicles. If this happens, the entire supply chain of the electric vehicle industry will be charged up. Such hopes and growing global acceptance for electric vehicles went in favor of clean energy.
Wilderhill Clean Energy Invesco ETF (PBW - Free Report) – Up 46.9%
Nasdaq Clean Edge Green Energy Index Fund FT (QCLN - Free Report) – Up 36.1%
Leisure
Among several economically sensitive sectors that are going to be the biggest beneficiaries of economic reopening, travel stocks come at the forefront. The group saw massive gains globally in November (read: Leisure Stocks & ETFs Rally on Strong Vaccine Hopes).
The Dow Jones Industrial Average topped the 30,000 milestone for the first time in November mainly on vaccine hopes. Plus, on Nov 18, Boeing (BA) won approval from the U.S. Federal Aviation Administration (FAA) to start re-operation of its 737 MAX jet after two fatal crashes (in Indonesia and Ethiopia) that caused two years of regulatory scrutiny. This probably spelled optimism for the entire sector (read: Is the Sky Clear for Boeing ETFs After 737 Max Approval?).
Image: Bigstock
5 ETF Areas of November That Are Up At Least 25%
U.S. stocks were super steady in November on back-to-back upbeat vaccine update. While Pfizer and Moderna already charged-up markets up with their success in COVID-19 vaccine clinical trials at the start of the month, AstraZeneca (AZN) said on Nov 23 that its vaccine, developed in collaboration with the University of Oxford, showed an average 70% effectiveness. Plus, Sanofi (SNY), GlaxoSmithKline's (GSK) and Johnson & Johnson (JNJ) are also working hard in the COVID-19 vaccine field.
This raised hopes of a return to normalcy sooner than expected. Moreover, chances of a divided Congress in the United States, which means status quo and the likelihood of no major policy changes in the medium term, aided the equity rally. The dual tailwinds led investors to rotate into the beaten-down segments of the year — cyclicals. Moreover, the month of November also saw renewed stimulus hopes.
Moreover, NRF noted last week that the retail sector has witnessed a V-shaped recovery as aggregate retail sales have grown both sequentially and year over year each month since June. For the first 10 months of this year, retail sales were up 6.4% versus the first 10 months of 2019, per NRF. Overall, the retail sector is expected to log a “strong finish” to 2020 despite COVID-19. Already, consumers did record online shopping during the Cyber Weekend.
As a result, the S&P 500 (up 10.8%), the Dow Jones (up 11.8%), the Nasdaq Composite (up 11.8%) and the Russell 2000 (up 18.3%) — all put up a great show last month. The Dow Jones logged its best month since 1987 (and its best November since 1928).
Industrials and Financials sectors clocked their best month since April 2009 while the energy sector as represented by the ETF XLE saw its second-best month ever. Against this backdrop, below we highlight a few ETF areas that shot up at least 24% last month.
Energy
The coronavirus-led global slowdown weighed on oil demand. Mounting concerns over the second wave of coronavirus cases have threatened demand further in recent sessions. However, back-to-back vaccine news has boosted the global markets as well as brightened the demand outlook of the energy sector.
Oil Services Vaneck ETF (OIH - Free Report) – Up 52.5%
S&P Oil & Gas Eqpt & Services SPDR (XES) – Up 52.3%
US Oil Equipment & Services iShares ETF (IEZ) – Up 48.2%
S&P 500 EW Energy Invesco ETF (RYE) – Up 41.7%
Cannabis
Cannabis stocks jumped last month on Biden’s win. The strength in the space solidified more on the news that Joe Biden's transition has formally started. Biden’s victory could speed up the legalization of marijuana at the federal level, thereby providing a boost to the U.S. cannabis industry. Earlier this month, voters in Arizona, Montana, New Jersey and South Dakota voted in favor of adult use of cannabis, bringing the total number of states that have cleared it for that purpose to 15 (read: Cannabis ETFs Surge on Kamala Harris' Decriminalizing Marijuana Pledge).
Amplify Seymour Cannabis ETF (CNBS - Free Report) – Up 47.1%
Global X Cannabis ETF (POTX) – Up 43.7%
Spinnaker ETF Series Cannabis ETF (THCX) – Up 43.3%
Clean Energy
Biden has expansionary plans for clean energy. Biden is forming a plan — a Clean Energy Revolution — to address the issue of climate emergency. He sees America as becoming a 100% clean energy economy by 2035 and having net zero emission by 2050.
Biden has a $2-trillion-plan toward combating climate change that will eliminate carbon emissions from the power grid by 2035 and accelerate the uptake of electric vehicles. If this happens, the entire supply chain of the electric vehicle industry will be charged up. Such hopes and growing global acceptance for electric vehicles went in favor of clean energy.
Wilderhill Clean Energy Invesco ETF (PBW - Free Report) – Up 46.9%
Nasdaq Clean Edge Green Energy Index Fund FT (QCLN - Free Report) – Up 36.1%
Leisure
Among several economically sensitive sectors that are going to be the biggest beneficiaries of economic reopening, travel stocks come at the forefront. The group saw massive gains globally in November (read: Leisure Stocks & ETFs Rally on Strong Vaccine Hopes).
Etfmg Travel Tech ETF (AWAY - Free Report) – Up 35.9%
US Global Jets ETF (JETS - Free Report) – Up 31.0%
Defense
The Dow Jones Industrial Average topped the 30,000 milestone for the first time in November mainly on vaccine hopes. Plus, on Nov 18, Boeing (BA) won approval from the U.S. Federal Aviation Administration (FAA) to start re-operation of its 737 MAX jet after two fatal crashes (in Indonesia and Ethiopia) that caused two years of regulatory scrutiny. This probably spelled optimism for the entire sector (read: Is the Sky Clear for Boeing ETFs After 737 Max Approval?).
S&P Aerospace & Defense SPDR (XAR - Free Report) – Up 25.5%
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