A tech-centered metropolis like San Francisco has been lacking its usual hustle and bustle, which is an obvious byproduct of the Covid-19 pandemic. The work-from-home movement is shaping one of Silicon Valley’s epicenters and the trend will only persist–an opportunity for exchange-traded fund (ETF) investors who know where to look.
“There are signs the exodus is finally happening. Silicon Valley, America’s signature hub of innovation, may never be the same,” a Wall Street Journal report pointed out. “Tech companies are giving their employees more freedom to work from anywhere. Employees are taking them up on the option to relocate, forming the beginnings of a shift that could reshape not only the Bay Area, but also the cities where these tech workers are making new homes. It’s early days, and information about who’s leaving and where they’re heading is just starting to come in. But for those who are looking, the evidence is there.”
Tech’s biggest superstars are furthering the work-from-home movement by mandating employees to remain on remote work duty.
“Google-parent Alphabet Inc. last month said employees won’t be returning to the office until at least the summer of 2021, in part so they can sign one-year leases somewhere else,” the WSJ report noted further. “Facebook Inc. recently said its employees could stay away for that long too. The social-media giant, which has 52,000 employees, expects to shift to a substantially remote workforce over the coming decade and is now recruiting a director of remote work. Other companies including Twitter Inc. and Slack Technologies Inc. have declared most of their employees can work remotely for good.”
As such, one relatively new ETF to look at 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
On a broader scale, traders looking to play the bullish side of tech can use the Direxion Daily Technology Bull 3X ETF (NYSEArca: TECL). TECL seeks daily investment results of 300% of the daily performance of the Technology Select Sector Index, which includes domestic companies from the technology sector.
For more market trends, visit ETF Trends.