6 home ETFs likely to win amid renewed foreclosure fears
NOTGlobal COVID-19 lockdowns in Europe have once again raised fears of further spread of infections. New restrictions beyond the mainland have weighed on the wider US market as travel restrictions slowly ease. This increases the chances of another wave of COVID-19 in other parts of the world.
The United States could be more vulnerable in winter than many European countries, according to Jim Reid, chief economist at Deutsche Bank, quoted on Yahoo Finance. Based on recent history, Reid said the United States has a higher bar for economic restrictions related to COVID-19. Again, it has a lower vaccination rate than its European peers.
Home-based ETFs and tech ETFs are expected to remain strong if fears continue. As we all know, internet stocks are winners in a pandemic because they have less to do with human contact. Fear of the coronavirus has favored the online retail industry as any kind of lockdown and self-imposed quarantine increases the demand for online shopping and other types of internet activity.
This highlights ETFMG Video Game Technology ETF GAMR, FNB Direxion Work from Home FMH, ETF Global X Cloud Computing NAIL, VanEck Semiconductor ETF SMH and Amplify Online Retail ETFs BUY and IShares Biotechnology ETFs IBB.
Restrictions imposed by coronaviruses last year have led to a boom in e-commerce and stay-at-home activities. The new restrictions should lead to the same trend. As such, people will again choose to stay indoors, which in turn will drive demand for cloud computing, games, e-sports, streaming services as well as online shopping. In addition, investors will continue to accumulate software stocks, which are apparently more isolated from the impacts of the virus.
Focus on ETFs
ETFMG Video Game Technology ETF
The video game industry has been a winner in the current health crisis. For nine months, total consumer spending on games increased 12% year-over-year to $ 42.28 billion. It’s impressive to observe that the video game industry is seeing strong sales growth despite difficult year-over-year comparisons, highlighting the strength of the space (read: Bet on these video game ETFs for capitalize on increased sales).
The underlying EEfund Video Game Tech Index tracks companies actively involved in the electronic games industry, including the entertainment, education and simulation segments. ETFMG Video Game Tech ETF charges 75 basis points for fees.
ETF Global X Cloud Computing
Cloud computing and storage are expected to remain in vogue in 2021. Space has received a boost amid the coronavirus outbreak with a large population working from home across the globe. Given the renewed fear of COVID-19, demand for cloud computing is expected to remain robust in the coming days.
The underlying Indxx Global Cloud Computing index provides exposure to publicly traded companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology. Zacks Rank # 2 Global X Cloud Computing ETF charges 68 bps in fees.
FNB Direxion Work from Home
The underlying Solactive Remote Work index includes stocks listed in the United States and ADRs of companies that provide products and services in at least one of the following business segments that facilitate people’s ability to work home: remote communications, cybersecurity, project and online document management and cloud computing technologies. The Zacks Tier 2 ETF (Buy) Direxion Work From Home charges a fee of 45 basis points.
VanEck Semiconductor ETF
The semiconductor space is torn apart as the pandemic has boosted demand for chips, resulting in the world’s worst shortage in many years. Profits for companies like Nvidia (NVDA), Qualcomm (QCOM) and Advanced Micro Devices (AMD) have been optimistic. The recent upsurge in the electric vehicle industry and heightened awareness of clean energy has also made the semiconductor industry a darling of investors (read: 4 ETF zones nearly a year with over growth margin).
The underlying MVIS US Listed Semiconductor 25 index tracks the overall performance of companies involved in semiconductor production and equipment. The ETF VanEck Semiconductor Zacks Rank # 1 (strong buy) charges a fee of 35 basis points.
Amplify Online Retail ETFs
According to the National Retail Federation (“NRF”), holiday season sales in 2021 are expected to surpass all existing records in November and December and increase 8.5-10.5 percent year-on-year to between 843.4 and $ 859 billion. Holiday sales rose 8.2% in 2020 to a record $ 770 billion. The NRF predicts an increase in online and other non-store sales of 11% to 15%, to between $ 218.3 billion and $ 226 billion, from $ 196.7 billion in 2020.
The underlying EQM Online Retail Index uses a rules-based methodology to select a globally diversified group of companies with 70% or more of revenue coming from online and virtual sales. Amplify Online Retail ETF charges 65 basis points of fees.
IShares Biotechnology ETFs
With the spread of COVID-19 resuming, all attention will be on booster shots of vaccines and antiviral therapy. Therefore, the iShares Biotechnology ETF, which has considerable exposure to Moderna, should prevail.
The underlying ICE Biotechnology Index contains securities of companies listed on NASDAQ that are classified as biotechnology or pharmaceuticals. iShares Biotechnology ETF charges 45 basis points for fees.
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iShares Biotechnology ETF (IBB): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
ETF Amplify Online Retail (IBUY): ETF Research Reports
Wedbush ETFMG Video Game Tech ETF (GAMR): ETF Research Reports
ETF Global X Cloud Computing (CLOU): ETF Research Reports
ETF Direxion Work From Home (WFH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.