Fearing 2nd Wave of Coronavirus? Bet on Stay-at-Home ETFs

Fears of a resurgence of the corona virus are scaring investors worldwide. In fact, China and Germany have taken the initiative to reintroduce some blocking measures in areas where new cases are being observed. In states such as Florida, Carolinas, Texas, and Arizona, there is an increasing number of hospitalizations and widespread community transmission (according to the CNN report). The new model also suggests that, according to the CNN report, Florida has "all markings of the next major epicenter" of the coronavirus outbreak. Fears worsened as the US reported more than 25,500 new coronavirus cases and approximately 755 deaths on June 17.
The impact of concerns about rising coronavirus cases was visible on Wall Street, where the Dow Jones Industrials Average Index lost 0.7% and the S&P 500 declined 0.4%. However, it was also observed that stocks such as Amazon, Netflix and Google Parent Alphabet, which recovered mainly during pandemic closures, actually increased in yesterday's trading session. Shares such as United Airlines and Nordstrom, which rose sharply after the economy reopened, lost ground in yesterday's trading session.
In such a scenario, let's look at some ETF areas that can win if people try to minimize human-to-human contact:
Work-from-home trend
In the current scenario, people will try to maintain social distance and work remotely. As a result, cloud computing is a key technology in the fight against corona virus. It helps companies remotely process a lot of information, develop and run critical applications and services, and collaborate with employees around the world while they work.
Kate Listers, President of Global Workplace Analytics, takes the current situation and underlines the growing preference for working from home. In this context, she said: “Seventy-seven percent of the workforce said they want to continue working from home at least once a week when the pandemic is over. By the end of 2021, 25 to 30 percent of the workforce will work from home several days a week, ”says a Forbes article. Large employers like Twitter and Facebook have allowed their employees to work from home.
With this in mind, investors can look at the following ETFs that may benefit from the trend: First Trust Cloud Computing ETF SKYY and Global X Cloud Computing ETF CLOU (see: What does cloud ETFs expect when zooms fame begins to fade?).
Online shopping trend
In times of crisis, people prefer to stay indoors and buy all important things online, especially groceries. As online retail is experiencing a surge in sales, companies such as Amazon and Walmart benefit from this. In fact, Walmart recently partnered with Shopify Inc. to open its Walmart marketplace to sellers of the latter.
According to an article by Total Retail, e-commerce sales are expected to grow more than 20% this year as more and more online shoppers shop for the first time. Against this background, the following ETFs can benefit from the new purchasing trend: Amplify Online Retail ETF IBUY, ProShares Long Online / Short Stores ETF CLIX and ProShares Online Retail ETF ONLN (see: 5 sector ETFs beat the market in the second quarter).
Increasing digital payments
In line with the growing online shopping trend, customers are using digital payments to pay their bills, while retailers and suppliers are in favor. According to a new crowdfund insider study, 50% of US consumers used contactless payment methods at least four times in May, with 69% agreeing that this mode is more convenient than cash transactions. In addition, three fifths of US consumers confirmed that these hassle-free digital payments will push them to continue the process in the post-COVID world as well.
According to Statista, the total transaction value in the Digital Payments segment in 2020 should have a growth rate of 15.3% compared to the previous year, which corresponds to a 5.4% increase in users. In view of this, investors can use ETFs such as the ETFMG Prime Mobile Payments ETF IPAY, the Tortoise Digital Payments Infrastructure ETF TPAY and the Global X FinTech ETF FINX.
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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

Global X FinTech ETF (FINX): ETF research reports

ProShares Long OnlineShort Stores ETF (CLIX): ETF research reports

ProShares Online Retail ETF (ONLN): ETF research reports

Tortoise Digital Payments Infrastructure ETF (TPAY): ETF research reports

Global X Cloud Computing ETF (CLOU): ETF research reports

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