Here are joe terranova's picks for 2021 and how to play the recovery

(This story is for CNBC Pro subscribers only.) Virtus Investment Partners' Joe Terranova revealed his favorite picks in different sectors for investors looking for quality growth

opportunities in the new year. Terranova is Virtus' senior managing director and chief market strategist with more than $118 billion assets under management. The longtime trader and

investor created and developed the index behind the Terranova U.S. Quality Momentum ETF. Reflationary bets Terranova said there's a big move toward reflationary assets on the back of an

economic recovery from the coronavirus pandemic. The investor said he's been picking up a duo of natural gas names — CNX Resources and EQT Corporation — to ride the rebound in

commodities. "We've got this clean energy story and we've got this dirty energy story which is oil itself, and let's go into the middle of that," Terranova said to

CNBC Senior Markets Commentator Mike Santoli during Wednesday's PRO talk. Terranova also likes Sea Ltd ., which is a semiconductor and component maker for electric vehicles. Meanwhile,

the investor said Steel Dynamics is a good play on a weak dollar and the potential for more infrastructure spending. The steel producer also offers a big dividend yield. He said he also

bought the iShares TIPS Bond ETF as inflation expectations edged up. Earlier this week, the "breakeven" rate for 10-year inflation expectations surpassed 2% for the first time in

more than two years. Biotech Biotech has been a popular sector for yield-hunting investors for a few years and Terranova said there's more to the story. Terranova is bullish on

companies developing monoclonal antibodies, particularly Seagen , which he believes can rally 40% to 50% this year. "I do believe in having exposure to biotech. I like doing it through

the ETF strategy," Terranova. Between the two major biotech ETFs — the SPDR S & P Biotech ETF (XBI) and the iShares Nasdaq Biotechnology ETF (IBB) — Terranova prefers XBI because

it's equal weighted instead of market-cap weighted. Tech When investing in Big Tech like Amazon, Facebook and Apple, Terranova believes it's necessary to avoid concentration risk,

and the way to achieve that is through equal weighting, he said. In the online space, Terranova is bullish on Chines e-commerce platform Pinduoduo , which is expected to be a big beneficiary

from the antitrust scrutiny over Alibaba . Shares of Alibaba recently came under pressure after news that the Chinese government is conducting an anti-monopoly probe into the tech giant.

Terranova also highlighted Shopify and Russian e-commerce platform Yandex , which screens well in his quality momentum index. Shares of Yandex rallied nearly 60% in 2020. _(This story is for

__CNBC Pro subscribers__ only.)_ Virtus Investment Partners' Joe Terranova revealed his favorite picks in different sectors for investors looking for quality growth opportunities in

the new year. Terranova is Virtus' senior managing director and chief market strategist with more than $118 billion assets under management. The longtime trader and investor created and

developed the index behind the Terranova U.S. Quality Momentum ETF.