The newly identified COVID-19 variant, Omicron, sounds like something borne out of technology, and it only makes sense that tech could re-assert itself amid more social distancing measures.
At the apex of last year’s pandemic scare, the internet became an even more essential part of our lives. The Pew Research Center has the numbers to back it up.
“Results from a new Pew Research Center survey of U.S. adults conducted April 12-18, 2021, reveal the extent to which people’s use of the internet has changed, their views about how helpful technology has been for them and the struggles some have faced,” the center says.
“The vast majority of adults (90%) say the internet has been at least important to them personally during the pandemic, the survey finds,” Pew Research adds further. “The share who say it has been essential – 58% – is up slightly from 53% in April 2020. There have also been upticks in the shares who say the internet has been essential in the past year among those with a bachelor’s degree or more formal education, adults under 30, and those 65 and older.”
Companies like Apple and Microsoft could once again come into the forefront, but it’s not as if big tech has faded into oblivion amid the recovery. The Nasdaq 100 is up over 30% on the year, and more could be ahead coming to the close of 2021 and going into 2022.
Two Ways to Play Tech
With a continued reliance on the internet, traders may want to look at the Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL), which seeks daily investment results equal to 300% of the daily performance of the Dow Jones Internet Composite Index. The fund allocates 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.
For traders looking for a more broad play with a similar amount of leverage, there’s the Direxion Daily Technology Bull 3X ETF (TECL), which seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index.
The fund, which is up close to 90% this year, allocates 80% of its net assets in financial instruments, such as swap agreements and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index includes domestic companies from the technology sector with big household names like the aforementioned Apple and Microsoft.
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