Before setting off to enjoy the spoils of another Thanksgiving (family, feasting and football), exchange traded funds investors may want to consider doing some pre-Turkey Day shopping.
Although U.S. stocks slightly backed off record highs Tuesday despite a surprise GDP report that said the world’s largest economy grew 3.9% in the third quarter, well above the 3.5% economists expected. The good news is that today is the day to consider broad market ETFs because of the potency of the Thanksgiving trade.
It is only slight hyperbole to say nearly every investor knows about the Santa Claus rally, but not everyone knows that the two best days of the year for the S&P 500 are not near Christmas, but rather Thanksgiving.
“What historically are the two best days to be in the U.S. stock market? According to Brooke Thackray, seasonal ETF strategist with Horizons ETFs, it’s the day before and the day after Thanksgiving! An allocation the S&P 500 or a Canadian stock ETF has served investors well on these days,” according to Horizons ETFs.
The S&P 500 is up 5.4% in the past month and the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and the Vanguard 500 Index (NYSEArca: VOO) are three of this year’s top-asset gathering ETFs. However, lower oil prices have plagued Canada, though the iShares MSCI Canada ETF (NYSE: EWC) is rebounding with a one-month gain of 4.3%.
Data indicate those gains can continue.