Flows rise into U.S. healthcare and tech funds in November
19/11/2020 13:24
Nov 19 (Reuters) - U.S. healthcare exchange traded funds
(ETFs) have led inflows in November, bolstered by the progress
in development of coronavirus vaccines.
Data from Morningstar showed U.S. healthcare ETFs have lured
$1.7 billion in the first two weeks of this month after
witnessing outflows in the past three months.
The news that Pfizer PFE.N and German partner BioNTech
SE's 22UAy.F experimental COVID-19 vaccine was more than 90%
effective based on initial trial results lifted healthcare
stocks last week. urn:newsml:reuters.com:*:nL1N2HV067
However, increasing COVID-19 cases and proposals for new
lockdowns in the United States have tempered some market
optimism and prompted investors to look for safer stocks.
U.S tech stocks attracted $1.2 billion in the first two
weeks of this month, as they have performed well during the
period of previous economic shutdowns.
"With Covid-19 case counts rising sharply amid the cold
weather, there is sentiment in some circles that economic
activity in the near term could take a hit, especially with a
new wave of shutdowns being proposed with each passing day,"
said Jeff Weniger, director of asset allocation at WisdomTree
Investments.
"Those concerns tend to witness capital flowing in the
direction of tech stocks, which are the primary beneficiaries
when the market is in a mood for a disinflationary and stagnant
economic backdrop."
Industrials, consumer discretionary and energy sectors also
attracted inflows this month, data showed.
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Breakdown by sector for fund flows into U.S. equities https://tmsnrt.rs/3lFGNlT
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(Reporting By Patturaja Murugaboopathy and Gaurav Dogra,
Editing by Nick Zieminski)
((patturaja.murugaboopathy@thomsonreuters.com;))