The effects of the coronavirus pandemic on the job market in China have been well-documented, but despite the gloomy economic outlook, job confidence in the finance sector remains relatively high. What are they so optimistic about?
“According to a just-published survey of Hong Kong professionals, only 31% of respondents feel confident or very confident that the job market will improve,” a Human Resources Online.net article noted. “While this may result in less willingness to change jobs at the moment, many respondents still believe in themselves and their ability to find work. The results also showed that if made redundant, about 50% of those currently in employment are confident in their ability to find a new role within three months.”
“The survey was conducted during February and March 2020 by Selby Jennings with over 140 financial services professional in North Asia,” the report added. “Most of the sample comprised of middle to senior levels professionals.”
For financial sector bulls, this could boost the Direxion Daily Financial Bull 3X ETF (NYSEArca: FAS), which seeks daily investment results worth 300 percent of the daily performance of the Russell 1000 Financial Services Index. The index is a subset of the Russell 1000 Index that measures the performance of the securities classified in the financial services sector of the large-capitalization U.S. equity market.
Traders who are sensing an opportunity to play the inverse side for bearishness can look at the Direxion Daily Financial Bear 3X ETF (NYSEArca: FAZ), which seeks daily investment results that equate to 300% of the inverse of the daily performance of the Russell 1000® Financial Services Index. The index is a subset of the Russell 1000® Index that measures the performance of the securities classified in the financial services sector of the large-capitalization U.S. equity market.
Other Finance Plays: Fintech
One of the areas in finance that could explode is a financial technology (fintech), and ETFs to look at in the growing space include the Global X FinTech ETF (NasdaqGM: FINX) and the ARK Fintech Innovation ETF (NYSEArca: ARKF). ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.
FINX seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Fintech Thematic Index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software, and alternative currencies, as defined by the index provider.
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