The exchange-traded fund landscape has seen a spike in capital inflows as investors pursue diversified investments given the elevated volatility levels in the capital markets. In recent days, the focus has been on ETF providing exposure to Pfizer Inc. (NYSE:PFE), a company that is closing in on regulatory approval of a much-needed COVID-19 vaccine.
A number of ETF with heavyweights to the drug maker were powering high after the company confirmed that its experimental coronavirus vaccine is 90% effective in combating the virus. As the stock rose 15% on the major breakthrough, so did ETFs that track the stock.
Wisdom Tree US Equity Income UCITS ETF with the largest Pfizer weight jumped by as much as 6.2%. The ETF stands out in part because it offers the best exposure to the highest dividend-yielding equities in the U.S. Invesco Health Care S&P US Select Sector UCITS ETF with a 4.9% weight on Pfizer was up by 1.5% on the Pfizer vaccine breakthrough.
Xtrackers MSCI World Health Care UCITS ETF is another must watch ETF amid Pfizer resurgence in the aftermath of the vaccine news. The ETF has seen inflows in the upwards of $113 million as healthcare remains the best performing sector boosted by the election of Joe Biden as the next president.
ETFs with exposure to Pfizer stock are not the only ones powering high. Value ETFs have also been powering high following confirmation that Biden is likely to be the next U.S president. A breakthrough in the development of an effective coronavirus vaccine is another development that continues to fuel demand for riskier assets, with investors turning to ETFs for broader market exposure.
In the aftermath of the Biden win and the Pfizer coronavirus news, the $1.2 billion iShares Edge MSCI USA Value Factor UCITS ETF rallied 4%. The $169 million Vanguard Global Value Factor UCITS ETF VDVA rallied 5.9%.
Invesco Tech ETF
Separately Invesco, which runs the fifth largest ETF with $135 billion in assets under management, is once again moving to capitalize on the growing tech stocks craze. Invesco NASDAQ NextGen 100 ETF is the firm’s latest ETF that consists of 10 mid-cap companies that are using technology in an interesting or innovative way.
The ETF will provide investors with exposure to obvious tech choices of the likes of Seagate and internet security firm Zscaler. The ETF will also track the performance of the likes of Garmin, Lyft, and social game developer Zynga.
The Junior QQQ ETF is part of a series of products that Invesco is launching as part of Invesco Suite. It has also confirmed plans to launch Invesco NASDAQ 100 ETF QQQM, a lower-cost version of QQQ targeting long-term buyers and hold investors.
State Street Corporation ESG ETF
In addition, State Street Corporation (NYSE:STT)’s asset management business, State Street Global Advisors, has unveiled a new ETD dubbed SPDR Bloomberg SASB ® Corporate Bond ESG Select ETF (RBND).
The new ETF comes into being to meet the ever-growing demand for core fixed income ESG aware exposure. It will also provide investor’s exposure to U.S dollar-denominated investment-grade corporate bonds.