Technology

ETFs Riding the Hot Remote Working Trend

  • (0:45) - What Should Investors Think Of The Stock Markets Current Performance?
  • (4:30) - Direxion Daily Dow Jones Internet Bull 3x & Daily CSI China Internet Index Bull 2X: WEBL & CWEB
  • (7:25) - How To Use Leverage And Inverse ETFs In Your Portfolio
  • (11:00) - Direxion Russell 1000 Growth Over Value & MSCI USA Cyclicals Over Defensives ETF: RWGV & RWCD
  • (15:40) - Direxion Work From Home ETF: WFH
  • (22:55) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with David Mazza, Managing Director at Direxion. Direxion is well-known for its leveraged and inverse ETFs. They also have some interesting thematic and relative weight ETFs.

Major indexes have rebounded strongly from coronavirus induced sell-off in late February and March, despite rising numbers of infections, thanks mainly to unprecedented monetary and fiscal stimulus, and hopes for a vaccine. The rally has been led by stocks that benefit from the trends accelerated by the health crisis.

We have seen years’ worth of digital transformation in the past six months. Internet ETFs— the Direxion Daily Dow Jones Internet Bull 3X Shares WEBL and the Direxion Daily CSI China Internet Index Bull 2X Shares CWEB—are up more than 60% this year.

Technology is the best performing sector this year,  up over 18% but the Direxion Daily Technology Bull 3X Shares TECL is up only about 10% year-to-date. Leveraged ETFs are designed to achieve their stated performance goal on a daily basis and their performance can differ significantly from their stated daily performance objectives if held for a longer period. Compounding can have both favorable and adverse effects on the returns.

Direxion’s Relative Weight ETFs allow investors to capture both sides of an expressed view. Some of them like the Direxion Russell 1000 Growth Over Value ETF RWGV and the Direxion MSCI USA Cyclicals Over Defensives ETFRWCD have done quite well. Can these trends continue?

The Direxion Work From Home ETF WFH offers exposure to 40 companies that stand to benefit from an increasingly flexible work environment. These are from cloud technologies, cybersecurity, online project and document management, and remote communications industries.

WFH made its debut less than a month back and has already gathered over $60 million in assets. Its top holdings include Twilio TWLO, Zoom Video ZM and Okta OKTA.

Tune into the podcast to learn more about these ETFs. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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Twilio Inc. (TWLO): Free Stock Analysis Report

Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB): ETF Research Reports

Direxion Daily Technology Bull 3X Shares (TECL): ETF Research Reports

Okta, Inc. (OKTA): Free Stock Analysis Report

Zoom Video Communications, Inc. (ZM): Free Stock Analysis Report

Direxion MSCI USA Cyclicals Over Defensives ETF (RWCD): ETF Research Reports

Direxion Russell 1000 Growth Over Value ETF (RWGV): ETF Research Reports

Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL): ETF Research Reports

Direxion Work From Home ETF (WFH): ETF Research Reports

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