Coattail investing institutional flow data points to gains

Institutional flow data points to gains in utilities due to coattail investing on pension fund allocations. The sector’s defensive nature delivered 3% monthly returns amid broader market volatility. Among the most popular single-stock ETFs are those based on Tesla and Nvidia. But other big tech names such as Apple , Microsoft, Amazon, Alphabet and Meta Platforms have them, too. These funds are based on popular, high-volatility stocks that attract enormous interest from investors, so don’t expect to see your favorite small-cap or even mid-cap stock with a fund. While some investing influencers may lack the educational credentials, industry experience and regulatory oversight offered by typical professionals in the financial and investing community, the most popular have attracted hundreds of thousands of followers due to their gift for communicating investment concepts in readily accessible ways. And, if treated with appropriate caution, following them via their posts, blogs, newsletters and videos can supply you with ideas, cautionary tales, education and inspiration to help you grow as an investor. Recent filings for Q1 2024 highlight that coattail investing portfolios focusing on healthcare outperformed the market by 3.8%. The surge follows major institutional buys in biotech innovators, anticipating FDA approvals within the next 12 months.