Thanksgiving Week is here and, owing to the coronavirus pandemic, Thanksgiving 2020 promises to be a turkey day unlike any other.
If history holds true to form, the trading week, limited to three and a half days, will be a good one for equities. That’s broader historical data. Drilling down, there are some groups that languish in the final full week of November. Looking at you, oil and gas exploration and production names.
Either way, plenty of exchange traded funds are worth considering this week, and that includes going beyond standard fare such as the U.S. Global Jets ETF (NYSE: JETS). Yes, JETS is higher by 18.31% over the past month and yes, people will travel over Thanksgiving, but this is a prosaic idea.
And we’ll stay away from puns using the iShares MSCI Turkey ETF (NASDAQ: TUR), although that one is a high flier in its own right, jumping 14% over the past month.
Here are some ETF ideas to consider for Thanksgiving week.
ProShares Long Online/Short Stores ETF (CLIX)
The arrival of Thanksgiving Week includes Black Friday, one of the ultimate retail events in American culture. However, the way we shop is being dramatically altered and there may be no going back to the holiday shopping of yesteryear.
Said another way, clicks are in, brick-and-mortar is on the way out, and the ProShares Long Online/Short Stores ETF (NYSE: CLIX) is the ETF designed to profit from that trend. As its name implies, CLIX is a long/short ETF, which can restrain performance when traditional brick-and-mortar retailers are rallying, but that’s not the case this year as CLIX is higher by 70%.
Underscoring the strength of CLIX and its long-term potential are the facts that last year’s records of 48 retail bankruptcies and 9,500 store closures are going to be topped this year.
Roundhill Sports Betting & iGaming ETF (BETZ)
The Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) is one of this year’s success stories among new ETFs. It has $145 million in assets under management six months into its lifespan. With sports being part of the fabric of Thanksgiving, BETZ is a sensible idea in the week ahead.
This Thanksgiving will be the first one for BETZ, and that could be good timing. If travel numbers decline, plenty of folks won’t be with family and could be searching for entertainment. Enter iGaming and sports betting, the latter of which should thrive in the week ahead with the annual slate of Thanksgiving NFL games and a fuller schedule later in the week.
For long-term investors, the encouraging aspect with BETZ is that conservative estimates for the domestic sports betting industry reside around $16 billion to $20 billion by 2025.
John Hancock Multifactor Mid Cap ETF (JHMM)
The John Hancock Multifactor Mid Cap ETF (NYSE: JHMM) isn’t as levered to Thanksgiving as BETZ and CLIX, but with mid-cap stocks perking up, the fund is worth considering. JHHM is rooted in quality, size and value factors.
“The resulting portfolio has noticeable tilts toward smaller and more-profitable stocks than the Russell Midcap Index, but its value tilt is less pronounced,” according to Morningstar. “The quality focus is the primary culprit, as very cheap stocks tend to rank poorly in profitability metrics. This is a worthy trade-off. Mild value exposure is a fair price to pay to avoid stocks whose low profitability makes them unlikely to deliver strong returns.”
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