Covid-19 will continue to force us to adapt to a new normal where technology plays an even larger part in our lives as social distancing measures continue amid the pandemic. As such, exchange-traded fund (ETF) investors looking for either short- or long-term opportunities can keep on riding the technology wave.
“There are four technological pillars sitting at the core of the remote work revolution: cloud technologies, cybersecurity, online project, and document management, and remote communication,” a Direxion Investments Relative Weight Spotlight article noted. “While some of these companies are well-established companies, any are not yet household names but offer some of the most interesting opportunities for investors. In fact, the combination of both large and small firms in the Solactive Remote Work Index, WFH’s benchmark index*, makes for a more diverse implementation as opposed to simply choosing one or two names for exposure.”
“With 62% of U.S. employees working from home1 in mid-April (up from an already elevated 31% in mid-March), and signs of more permanent work-from-anywhere solutions taking place, cloud adoption is expected to increase even further,” the article added. “In 2019, enterprise spending on cloud infrastructure ($97 billion) surpassed spending on data center hardware and software ($93 billion)2 for the first time ever, and with the current environment presenting unforeseen difficulties for managing on premise infrastructure, businesses will look to become even more flexible with cloud solutions.”
Traders looking for opportunities in this new normal can check out the following funds:
- Direxion Daily Technology Bull 3X ETF (NYSEArca: TECL)
- Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL)
- Direxion Daily Semiconductor Bull 3X ETF (NYSEArca: SOXL)
- Direxion Daily Consumer Discretionary Bull 3X ETF (NYSEArca: WANT)
- Direxion Robotics & AI Bull 3X ETF (NYSEArca: UBOT)
The fairly new kid on the block to check out is the Direxion Shares ETF Trust – Direxion Work From Home ETF (WFH). The fund invests in stocks of companies operating across work from home includes remote communications, cybersecurity, project and document management, and cloud technologies sectors. It invests in growth and value stocks of companies across diversified market capitalization.
It seeks to track the performance of the Solactive Remote Work Index, by using full replication technique. Additionally, WFH:
- Uses advanced techniques to identify the 40 stocks accelerating greater adaption of remote work
- Offers exposure to four pillars, across established and emerging technologies, that power the ability to work from home efficiently and effectively
- May be considered a satellite holding to complement other broader positions within a portfolio
For more market trends, visit ETF Trends.