Bet on These ETFs to Gain From Coronavirus-Shaped "New Normal"
The rest of 2020 is expected to keep bearing the brunt of the coronavirus outbreak as it continues to spread. In fact, the total number of coronavirus-infected cases crossed 6.6 million in the United States, with the death toll touching at least 196,000.
Under the current scenario of the surging work-from-home and online shopping, increasing digital payments, growing video streaming and soaring video game sales are gradually becoming the ???new normal.??? With the new trends making way, a few major technology stocks are expected to keep gaining traction from the buoyancy in demand for their products and services.
Against this backdrop, let???s look at some ETFs that are gaining:
First Trust Cloud Computing ETF SKYY
Due to the coronavirus pandemic, people have to maintain social distancing and work remotely. In such a scenario, cloud computing???s popularity is growing and altering the way people are managing data, communication and business.??Cloud computing and storage have enabled video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. It has also found application in social networking, messaging apps and streaming services.
Notably, SKYY seeks investment results that correspond generally to the price and yield, before fees and expenses, of the ISE Cloud Computing Index. It tracks the performance of companies actively involved in the cloud computing industry. The fund holds about 65 securities in its basket. It has AUM of $4.91 billion and an expense ratio of 0.60%. The fund has gained around 30.2% in the year-to-date period (read: Oracle Partners With TikTok : ETFs to Gain).
VanEck Vectors Video Gaming and eSports ETF ESPO
In the current scenario, people are depending on in-house entertainment. Thus, with kids staying at home and adults looking for some indoor fun activities during leisure time, the video game industry is experiencing a boom.
In fact,??The Global Gaming Study: Impacts of COVID-19??conducted by Simon-Kucher & Partners and Dynata in May-June 2020 highlights how the coronavirus outbreak has buoyed the video gaming industry. It reveals that there is a 30% rise in gamers who stay occupied for more than five hours a week. The report also shows that there is a 39% increase in monthly expenditure on video games. This study that surveyed more than 13,000 people across 17 countries about their gaming preferences and behavior also highlights that these lifestyle changes will remain even after the lifting of lockdown.
ESPO, seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS??Global Video Gaming and eSports Index, which is intended to track the overall performance of companies involved in video game development, esports, and related hardware and software. It holds 26 stocks in its basket. With AUM of $484 million, the fund charges 55 basis points in expense ratio. The fund has gained around 60% in the year-to-date period (read: Nvidia's Buyout of Designer Arm Put These ETFs in Focus).
Amplify Online Retail ETF IBUY
In order to avoid human-to-human contact, people are staying indoors and shopping online for all essentials, especially food items.??Going by the latest data from Adobe, ecommerce sales increased 42% year over year in August to $63 billion. Furthermore, consumers have spent an additional $107 billion online since March, with online spend totaling $497 billion in 2020.
Strikingly, even as the rebooting of the U.S. economy happens in phases and social-distancing restrictions are being eased, people are increasingly opting for contactless operations. It???s largely because the pandemic has brought about some changes in lifestyle and influenced Americans??? preferences. Most surveys have found that people are more interested in online shopping rather than visiting a bricks-and-mortar store for their purchases of essential food items and supplies now.
IBUY provides a cost-efficient way for investors to own a basket of companies with significant revenue from online and virtual retail sales. It tracks the EQM Online Retail Index. The fund holds 49 stocks in its basket. It has accumulated $865.8 million in its asset base and charges 65 bps in annual fees. The fund has gained around 68.9% in the year-to-date period (read: COVID Winner Peloton Jumps on Solid Earnings: ETFs to Gain).
ETFMG Prime Mobile Payments ETF??IPAY
Customers are resorting to digital payments to clear their bills, while merchants and utility providers are advocating the same.??Per Statista, total transaction value in Digital Payments segment should see 15.3% year-over-year growth in 2020 on a 5.4% rise in users.??
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Prime Mobile Payments Index. The fund holds 42 stocks in its basket. It has accumulated $776.2 million in its asset base and charges 75 bps in annual fees. The fund has gained around 10.9% in the year-to-date period.
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Amplify Online Retail ETF (IBUY): ETF Research Reports
ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports
First Trust Cloud Computing ETF (SKYY): ETF Research Reports
VanEck Vectors Video Gaming and eSports ETF (ESPO): ETF Research Reports
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