(C) Reuters. A U.S flag is seen on the New York Stock Exchange in the Manhattan borough of New York City
(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.
Graphic: Breakdown by sector for fund flows into U.S. equities – https://fingfx.thomsonreuters.com/gfx/mkt/gjnvwblkrpw/Breakdown%20by%20sector%20for%20funds’%20flows%20into%20U.S.%20equities.jpg
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 (NASDAQ:WETF).
“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.
Flows rise into U.S. healthcare and tech funds in November
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