Grab These 5 ETFs as Coronavirus Cases Continue to Rise

The world’s largest economy seems to be facing the threat of the fourth coronavirus outbreak wave. Sadly, at least 551,000 people in the United States have died from the COVID-19 infection since February 2020, per The Washington Post article. According to Johns Hopkins University data, United States has averaged 65,700 new cases a day over the last week, up 22% from the prior week numbers (per a CNN report).

However, majority of the states in the United States are reopening businesses like gym, bars, restaurants and salons, with people not strictly following the mask mandate.  Commenting on the current conditions, Centers for Disease Control and Prevention Director Dr. Rochelle Walensky said that the United States is facing an “impending doom”, per a CNBC article. She also said that “we have so much to look forward to, so much promise and potential of where we are and so much reason for hope, but right now I’m scared,” according to the same CNBC article.

Globally, the World Health Organization has reported a 14% increase in new coronavirus cases over the seven-day period ending Mar 28, according to The Washington Post article.

The resurging cases have frightened investors as they fear that implementation of new lockdown measures to control the spread may hurt global economic recovery achieved so far, following the reopening of economies.

The highly contagious variants are appearing to be a probable reason behind the fresh cases. The contagious U.K. variant currently makes up for about 30% of the coronavirus cases in the United States, per a CNBC article. Going by the same article, there are chances of the variant becoming dominant by the end of this month or early April.

According to Michael Osterholm, director of the Center for Infectious Disease Research and Policy at the University of Minnesota, the B.1.1.7 variant has caused a rise in transmission in countries with a vaccination drive similar to the United States (per a CNN report). Globally, in order to combat the outbreak, Germany has extended the lockdown until Apr 18, while the majority of France is also under lockdown. Moreover, India and Brazil are increasingly seeing new coronavirus cases. On the other hand, Argentina suspended all the incoming flights from Brazil, Chile and Mexico from Mar 27, per a CNN report.  Also, Turkey and Canada are seeing increasing new cases and hospitalizations largely due to the B.1.1.7 variant, as mentioned in a CNN report.

Amid the coronavirus pandemic, surging work-from-home and online shopping trends, increasing digital payments, growing video streaming and soaring video game popularity have been observed. 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.

Evidently, industries like cloud computing have been thriving with majority of people working from home. Even though vaccine rollout has begun globally, demand for cloud computing is set to stay robust even beyond the pandemic. In the wake of the pandemic, cloud technology adoption is projected to witness robust growth in sectors where work-from-home initiatives are helping sustain business functions.

Gartner has reportedly projected end-user spending on public cloud computing to increase 18.4% in 2021 globally to a total of $304.9 billion, up from an estimated $257.5 billion in 2020. Integration of cloud computing with AI, big data and IoT will help businesses touch new levels of success in innovation.

Online shopping is gaining favor among shoppers in an attempt to minimize human-to-human contact as coronavirus cases continue to surge in the United States. Going by a Statista report, the global e-commerce market is expected to touch $3.3 trillion, at a CAGR of 7.4% between 2020 and 2025.

It seems like there is no stopping video game players this year, with the health crisis forcing people to stay indoors. Moreover, the boom in the video gaming space will likely continue in the post-pandemic era as the health crisis has changed the lifestyle and preferences of Americans to a large extent.

Going by a Statista report, revenues in the video games segment are expected to reach $154,630 million in 2021. According to the same report, revenues are expected to see a CAGR of 9.3% between 2021 and 2025, leading to a market volume of $220,549 million.

ETFs to Watch Out For

Against this backdrop, we present some ETFs from several corners of the e-commerce segment in the technology or consumer discretionary sector that will continue gaining from the worsening outbreak due to the “new normal” trends.

First Trust Cloud Computing ETF SKYY

This fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the ISE Cloud Computing Index. It charges investors 60 basis points (bps) in fees per year. The product has amassed $5.81 billion in its asset base (read: Time to Buy These Undervalued Tech ETFs on the Dip?).

Global X E-commerce ETF EBIZ

This fund invests in companies positioned to benefit from the increased adoption of e-commerce as a distribution model, including companies whose principal business is in operating e-commerce platforms, providing related software and services, and/or selling goods and services online. It has accumulated $224.1 million in its asset base and charges 50 bps in annual fees (read: 4 Platform Providers to Tap Gains From E-commerce Boom in 2021).

ProShares Online Retail ETF ONLN

The fund seeks investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. With an AUM of $1.15 billion, the fund has an expense ratio of 58 bps (read: 5 ETFs to Buyon Amazon's Blockbuster Q4 Earnings).

Roundhill Sports Betting & iGaming ETF BETZ

This ETF debuted in late-April 2020 and has already attracted $492.4 million in AUM. This ETF is designed to offer retail and institutional investors global exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. The fund charges 75 bps in annual fees (read: 5 ETFs to Ride on Rising Consumer Confidence).

Global X Video Games & Esports ETF HERO

The fund seeks to invest in companies that develop or publish video games, facilitate the streaming and distribution of video gaming         or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality. With an AUM of $660 million, the fund charges 50 bps points in expense ratio (read: Sports Betting ETFs to Rally on March Madness Gambling).

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