ETFs to Consider as June Private Payrolls Rose 2.37 Million

As economies around the world return to normalcy, it appears the workforce may be following in tow as private payrolls increased 2.369 million for the month of June. Investors sensing an opportunity can look to exchange-traded funds (ETFs) as the workforce continues to strengthen—at least that’s the hope despite the growing number of second-wave coronavirus cases.

Per a CNBC report, the latest June figure “actually represented a decline from the previous month, which saw a dramatic upward revision to 3.065 million. ADP initially said May saw a loss of 2.76 million. However, the Labor Department two days later reported a gain of 2.5 million for May, a number that itself was far better than the Wall Street estimate of an 8 million loss.”

“There is no information in that revision. It is simply the result of the fact that our objective here is to predict the [Bureau of Labor Statistics] number with the ADP data and to do that as accurately as possible,” said Mark Zandi, chief economist at Moody’s Analytics. “You can’t glean from that that something positive is happening in the labor market.”

Investors looking to bank on more strength in jobs can continue to look towards equities via the

Goldman Sachs MarketBeta US Equity ETF (GSUS). GSUS seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive GBS United States Large & Mid Cap Index.

The fund invests at least 80% of its assets in securities included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its underlying index. The index consists of equity securities of large and mid-capitalization equity issuers covering approximately the largest 85% of the free-float market capitalization in the United States.

An alternate play on the changing workforce is a move towards an economy comprised of side gigs, which can benefit the SoFi Gig Economy ETF (GIGE). The fund seeks long-term capital appreciation and to achieve its investment objective primarily by investing in a portfolio of companies listed around the world that the Adviser considers part of the “gig economy”.

The “gig economy” refers to the group of companies that have embraced, that support, or that otherwise benefit from a workforce where individual employees or independent contractors are empowered to create their own freelance business by leveraging recent developments in technology platforms that enable individuals to offer their services directly to retail and commercial customers.

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