Post-election impact on BITA’s United States Politics Thematic Indices
Back in September, when we introduced our new series of thematic indices based on potential outcomes of the United States presidential election, Coronavirus was still dominating market news. Now that we are in the midst of post-election uncertainty, the pandemic still plays a relevant role in the daily news cycle.
With the positive announcement from Pfizer (a constituent of the BITA Trump Giants Index) regarding their COVID-19 vaccine trial, and the US surpassing over 100,000 new infections in a 24-hour period, it is hard to imagine the news cycle dominated by other topics.
Nevertheless, the election results continue to move markets, as retail and professional traders alike continue to adjust their positions to reflect this new reality. Joe Biden has been announced as the President-elect, while President Trump continues to contest the result of the election. Moreover, his election team has filed lawsuits in various states in an effort to overturn the current result.
Regardless of who will be President on January 20th, retail and professional investors will continue to predict which sectors stand to benefit the most from either Presidency.
At BITA, we consider investors’ particular needs when developing new products, so that they can get exposure to different investment themes such as United States political uncertainty. These new indices are designed based on an objective, rules-based methodology that identifies companies expected to be positively impacted by either a Trump or Biden victory in the United States Presidential election.
Composition of Index and Performance
As of November 13th, the constituents of each index were:
In our original piece “Introducing: BITA United States Politics thematic indices”, we showed the performance of both indices, along with the SPY; BBIDGI outperformed both the BTRUGI and the SPY. However, from the start of October until November 13th, both political indices had somewhat similar results with the BBIDGI index slighted outperforming the BTRUGI. As the future outcomes become less opaque, will the indices follow the same trajectory in the last weeks of 2020, and in 2021?
Where to trade these indices?
Both indices can be traded through GAIN Capital, a global leader in online trading. GAIN Capital operates FOREX.com and City Index, online FX, and CFD platforms that provide 200,000+ global investors with access to thousands of markets including indices, commodities, forex, bonds, and derivatives on global equities.
About BITA
At BITA we use a transparent, straightforward and consistent construction process that ensures true exposure to mega-trends. Moreover, our state-of-the-art index development software allows us to be flexible in designing and implementing innovative passive solutions for our clients.
To learn more about BITA’s real-time data products, please visit our website at http://www.bitadata.com or contact us at info@bitadata.com.
