Increased Commercial Investment Should Give 'WEBL' an Added Boost

Increase commercial investment in web technologies is a key driver for the success of internet service providers, which should give the Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL) an added boost.

“Increased investment from the commercial sector in computing technologies has most recently taken the form of increasing the amount of information collected from discrete sources,” noted IBISWorld, a data research company. “This industry serves to connect those sources. Private investment in computers and software is expected to increase in 2021, representing a potential opportunity for the industry.”

WEBL seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Dow Jones Internet Composite Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index.

Unprecedented Growth

The internet has seen unprecedented growth during the last five years. That was especially the case during the pandemic as more users were forced to rely on web technology amid social distancing measures.

“The Internet Service Providers industry is characterized by rapid technological change and robust competition, and industry revenue has grown an annualized 0.2% to $117.9 billion over the five years to 2021,” IBISWorld said. “The industry has posted strong and consistent gains during most of the period, with the exception of a slight decline in 2017 as the rate of consumers switching to wireless connections outpaced new wired connections subscriptions and a slight decline in 2020 due to the conflicting effects of the COVID-19 (coronavirus) pandemic on this industry.”

“A rise in the number of broadband connections and expanding internet traffic volume have been the two most significant drivers of revenue growth over the past five years,” added IBISWorld.

Some other things to note about the growth of internet service providers in 2021, as compiled by IBIS World:

  • The market size, measured by revenue, of the Internet Service Providers industry is $117.9bn in 2021.
  • The market size of the Internet Service Providers industry is expected to increase 0.5% in 2021.
  • The market size of the Internet Service Providers industry in the US has grown 0.2% per year on average between 2016 and 2021.

WEBL 1 Year Performance

For more news and information, visit the Leveraged & Inverse Channel.