Play COVID-Themed ETFs as US Labor Day Sees Rise in New Cases
The remainder of 2021 is expected to continue reeling under the spurt in coronavirus cases. Thus, a COVID-themed ETF could be a wise choice.
The coronavirus outbreak has once again become a huge concern for the world’s largest economy. New cases are being registered in huge numbers among the unvaccinated people. Only 53% of the total US population is fully vaccinated, which means that it’s a long way to go to achieve herd immunity, according to a CNN report.
Per Johns Hopkins University data, the seven-day average of new COVID-19 cases surged more than 300% than the Labor Day reading of the previous year (per a CNN report). The United States is witnessing a considerable spike in COVID-19 cases. Going by Johns Hopkins University data, the United States is witnessing 160,000 new COVID-19 cases a day, as stated in the same report.
Given the situation, Dr. Rochelle Walensky, the director of the US Centers for Disease Control and Prevention (CDC), had urged unvaccinated Americans to avoid travel during the Labor Day holiday weekend, according to a CNN report.
The resurging cases may frighten investors that the implementation of new lockdown measures to control the spread of the coronavirus may hurt the global economic recovery achieved so far. Particularly, stocks that have been gaining from the reopening economy belonging to sectors like travel, energy, industrial, materials and retail, may get impacted.
COVID-Themed ETFs That May Gain
It looks like the rest of 2021 will continue to bear the brunt of the pandemic blues, before the majority of Americans get vaccinated. Therefore, a COVID-themed ETF could be a smart pick. Against this backdrop, there was a host of launches,keeping the pandemic in focus:
Direxion Work From Home ETF WFH
Launched on Jun 25, 2020, this fund seeks investment results, before fees and expenses, that track the Solactive Remote Work Index. It offers exposure to companies across four technology pillars, allowing investors to gain exposure to those firms that stand to benefit from an increasingly flexible work environment. The four pillars include Cloud Technologies, Cybersecurity, Online Project and Document Management, and Remote Communications. Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses key words to evaluate large volumes of publicly available information, such as annual reports, business descriptions and financial news. It charges a fee of 45 basis points (bps) a year (read: Best ETF Areas for Placing Your Bets in September).
Global X Telemedicine & Digital Health ETF EDOC
This fund was launched on Jul 29, 2020. It seeks investment in companies positioned to benefit from advancements in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Healthcare Analytics, Connected Healthcare Devices and Administrative Digitization. The fund charges a fee of 68 bps a year.
Global X Education ETF EDUT
Launched on Jul 10, 2020, the fund seeks investment 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. It charges a fee of 50 bps a year.
Pacer BioThreat Strategy ETF VIRS
The fund debuted on Jun 24, 2020 and aims to gain exposure to the U.S. companies, which in their normal operations, provide goods and services to the market through accomplishing one or more of the seven index themes. It charges a fee of 70 bps a year (read: Sanofi to Buy mRNA Developer: ETFs in Focus).
ETFMG Treatments Testing and Advancements ETF GERM
Launched on Jun 17, 2020, the fund is designed to provide exposure to biotech companies directly engaged in the testing and treatment of infectious diseases. It is focused on advancement with targeted exposure to the forefront of R&D, vaccines, therapies and testing technologies. It charges a fee of 68 bps a year (read: 6 Best ETF Areas of August).
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ETFMG Treatments, Testing and Advancements ETF (GERM): ETF Research Reports
Direxion Work From Home ETF (WFH): ETF Research Reports
Pacer BioThreat Strategy ETF (VIRS): ETF Research Reports
Global X Education ETF (EDUT): ETF Research Reports
Global X Telemedicine & Digital Health ETF (EDOC): ETF Research Reports
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