Market Commentary — January 25, 2021

The equity markets finished the week slightly below record highs as investors continued to balance positive news with near-term challenges. In focus last week was the $1.9 trillion fiscal stimulus package, worsening coronavirus news, and a slow vaccine rollout. This week will shed light on corporate earnings, with 23% of the S&P 500 names reporting.

The recent two-and-half month stretch since Election Day has produced some of the strongest market performance since 1932, with a return for the S&P 500 of 14%. While there is plenty of evidence that the bull market still has room to run, elevated expectations could bode for a period of short-term consolidation ahead as future optimism confronts harsh near-term realities.

We have had a few clients reach out to us for a “Biden” ETF Model, of names likely to benefit in the coming year. Here is our best crack at the top 10 themes that seem likely to benefit from Biden initiatives and investor sentiment:

• Clean Energy
• Cannabis
• Blockchain/Digital Currency & Payment
• Electric Vehicles/Battery Technology
• Infrastructure
• Travel
• Innovation
• China/Emerging Markets Consumer
• Housing
• Ecommerce

Another theme we are positioning clients for post-pandemic is Inflation!

This week is normally the week for one of our industry’s largest conferences, Inside ETFs in Hollywood, Florida. I am sorely missing in-person interactions with all my industry colleagues this week, but hoping to see you all safely in September. At least it looks like someone is saving our spot in the Diplomat Lobby for 2022.

Make sure you get your nominations in for 2020’s ETF.com Awards!

Jane Edmondson
CEO and Co-Founder

About

EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 25 years in the investment industry.

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The information provided on this page is for illustrative purposes only and is not intended to serve as investment advice. The information provided is as of particular time and subject to change at any time without notice.

It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. EQM Indexes does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. EQM Indexes Indices makes no assurance that investment products based on the Index will accurately track index performance or provide positive investment returns. EQM Indexes is not an investment advisor, and makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this article. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by EQM Indexes to buy, sell, or hold such security, nor is it considered to be investment advice.