Just because the world is dealing with the Covid-19 pandemic doesn’t mean that school is no longer in session. With a number of educational curriculums being delivered via online courses, back-to-school shopping is still in full swing.
The only difference in back-to-school shopping this time around is the items purchased. With a focus on technology, electronics are the prime focus of parents’ wallets.
“Parents likely will buy fewer traditional back-to-school clothing since many students will be learning virtually at home,” a News Advance article noted. “But parents will be buying different school supplies than normal to compensate for the fact that students won’t be able to use communal classroom supplies if they are learning from home.”
“Most of those who are anticipating some portion of e-learning this year are planning to purchase items specifically for a virtual environment,” said Katherine Cullen, senior director of industry and consumer insights for the National Retail Federation, the nation’s largest retail trade organization. “This includes larger electronics, like laptops or desktops as well as speakers and headphones and other categories like desks, lamps, and workbooks.”
Covid-19 or not, families are still more apt to pour money into students returning to school.
“Back-to-school spending nationally is expected to total $33.9 billion, up from $26.2 billion last year, according to the National Retail Federation’s annual survey,” the report added. “Families with children in elementary school through high school plan to spend an average of $789, while those with children in college plan to spend an average of $1,059.”
“Much of the increase in spending is largely due to more parents buying computers and other electronics, with 63% of K-12 families in the survey saying they plan to buy those items, up from 54% last year,” the report said.
An Educational ETF Focus
With back-to-school looming, one fund that exchange-traded fund (ETF) investors can check out is the Global X Funds – Global X Education Thematic ETF (EDUT). The Global X Education ETF (EDUT) seeks to invest in companies providing products and services that facilitate education, including online learning and publishing educational content, as well as those involved in early childhood education, higher education, and professional education.
- Long-Term growth potential: EDUT enables investors to access long-term growth potential through companies that are broadening access to education around the world.
- Unconstrained Approach: EDUT’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF efficiency: In a single trade, EDUT delivers access to dozens of companies with high exposure to the education theme.
For more market trends, visit ETF Trends.