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Market Outlook & Thematic ETF Ideas for Q4

  • (1:00) - Is The Stock Market Moving Towards A Correction?
  • (7:45) - What Is The Biggest Risk The Stock Market Currently Faces?
  • (12:15) - How Should Investors Position Their Portfolios For 2021 Going Forward?
  • (16:35) - The 5G Takeover: Defiance Next Gen Connectivity ETF (FIVG)
  • (24:45) - The Future of Hydrogen: Defiance Next Gen H2 ETF (HDRO)
  • (26:10) - Should Investors Consider SPACs As A Good Investment?
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Sylvia Jablonski, Chief Investment Officer at Defiance ETFs, about fourth quarter market outlook and some thematic ETFs.

September is historically a volatile month for stocks and trading has been quite choppy this year as well. Investors have become cautious lately as some of the recent economic reports suggest that the recovery could be losing steam, with rising Covid-19 cases and hospitalizations in many parts of the country.

Stocks were boosted by generally better than expected earnings and impressive economic rebound. But some experts have warned that peak in earnings and economic growth may be behind us. What can investors expect from Q4 2021?

The S&P 500 and Nasdaq indexes are up about 20% each year-to-date, driven mainly by mega cap tech stocks. The Dow has gained about 15% whereas the Russell 2000 index of small cap stocks has underperformed lately and is up 13% so far in 2021. How should investors position their portfolios for the rest of the year?

5G has drawn headlines for the past four years, but the rollout has been very slow. The technology will have an enormous impact when it becomes mainstream and could transform the way we live, work and enjoy ourselves.

The Defiance Next Gen Connectivity ETF FIVG offers exposure to companies engaged in the research and development of systems and materials used in 5G communications. AMD AMD and Apple AAPL are among its holdings.

Quantum computing is another technology which has immense potential but is in very early innings currently. The technology will bring artificial intelligence and machine learning applications to transform industries, but the real-world applications are a few years away.

The Defiance Quantum ETF QTUM invests in companies on the forefront of cloud computing, quantum computing, machine learning, and other transformative technologies. Microsoft MSFT and Alphabet GOOGL are among its holdings.

Hydrogen is often touted as the fuel of the future as the world transitions away from fossil fuels. Even big oil companies are investing millions in green hydrogen projects, but the technology is not cost effective currently.

The Defiance Next Gen H2 ETF HDRO provides diversified exposure to global firms focused on the development of hydrogen and fuel cell technologies.

SPACs, which raise money from investors, only to find a private company and take it public, were very hot earlier this year. Many startups preferred going public through SPACs to avoid the cumbersome and time-consuming traditional IPO process.  They were also able to avoid normal due diligence that a traditional IPO must go through.

Many SPACs are now trading at deep discounts. Is it time to look at this beaten down area and the Defiance Next Gen SPAC Derived ETF SPAK? DraftKings DKNG and Virgin Galactic SPCE are among the top holdings in SPAK.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.


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Apple Inc. (AAPL): Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
 
Microsoft Corporation (MSFT): Free Stock Analysis Report
 
Alphabet Inc. (GOOGL): Free Stock Analysis Report
 
Defiance Quantum ETF (QTUM): ETF Research Reports
 
Defiance Next Gen Connectivity ETF (FIVG): ETF Research Reports
 
Virgin Galactic Holdings, Inc. (SPCE): Free Stock Analysis Report
 
DraftKings Inc. (DKNG): Free Stock Analysis Report
 
Defiance Next Gen SPAC Derived ETF (SPAK): ETF Research Reports
 
Defiance Next Gen H2 ETF (HDRO): ETF Research Reports
 
To read this article on Zacks.com click here.
 
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