Wall Street continues to see a rough patch in September, which is historically considered the worst month for the stock market. The Dow Jones Industrial Average dropped 1.9% on Sep 23. Moreover, the S&P 500 index lost 2.4% and the Nasdaq composite was down 3% during the trading session on the same day.
Apart from the seasonal phenomenon, September has exposed investors to a host of other issues. The aggravating coronavirus outbreak has caught investors’ attention and they are apprehensive about another round of lockdowns. In fact, the United Kingdom is seeing a rise in infections and the government is considering another national lockdown to control the situation, per a CNBC article. Moreover, the country witnessed its highest daily rise in coronavirus cases since May, one day after the government announced a new set of restrictions to control the outbreak. Going on, Israel has also announced stricter restrictions during its second general lockdown, as the number of new coronavirus cases is increasing, per a CNN report. India is also facing an aggravating coronavirus situation as the economy continues to reopen and is now the second-worst hit country after the United States.
Investors also seem to be bothered about the uncertainty surrounding further U.S. fiscal stimulus which shall be an absolute necessity for economic recovery. In this regard, Federal Reserve Chairman Jerome Powell has commented that further fiscal stimulus spending is still required for the U.S. economic recovery to continue, per a CNBC article. A report that showed global banks moved allegedly illicit funds over the past two decades also contributed to investors’ growing concerns and market sell-offs, according to a CNBC article.
On the vaccine front, Dr. Anthony Fauci, leading infectious disease expert, recently commented that "large proportion" of the United States will not receive the coronavirus vaccine in 2020, per a CNN report. Also, according to some sources, the FDA is considering new coronavirus vaccine guidelines which can result in a vaccine authorization after Election Day.
Investors should not forget that this year has the U.S. Presidential elections as well. Thus, with elections approaching, investors need to prepare for heightened volatility in the broader equities space. Notably, this election year could be worse as the coronavirus pandemic continues to spread.
COVID-19 Themed ETFs in Focus
It feels like the rest of 2020 will continue to bear the brunt of the coronavirus outbreak and therefore, a COVID-19-themed ETF could be a smart pick. Against this backdrop, there have been some launches keeping the pandemic in focus:
Direxion Work From Home ETF ( WFH Quick Quote WFH - Free Report) — up 3.3% since launch
Launched on Jun 25, 2020, the 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 companies 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:
Stay-At-Home ETFs to Soar Further on New Lockdown Measures). Global X Telemedicine & Digital Health ETF ( EDOC Quick Quote EDOC - Free Report) — up 3%
This fund was launched on Jul 29. It seeks to invest in companies positioned to benefit from advances in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Health Care Analytics, Connected Health Care Devices, and Administrative Digitization. The fund charges a fee of 68 bps a year (read:
Buy the Dip With These ETFs Under $20). Global X Education ETF ( EDUT Quick Quote EDUT - Free Report) — up 9.4%
Launched on Jul 10, the fund seeks to invest 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 (read:
5 ETFs Shining Bright Amid September Selling). Pacer BioThreat Strategy ETF ( VIRS Quick Quote VIRS - Free Report) — up 9.6%
The fund debuted on Jun 24 and seeks to gain exposure to U.S. companies that, 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:
Nvidia's Buyout of Designer Arm Put These ETFs in Focus). ETFMG Treatments Testing and Advancements ETF ( GERM Quick Quote GERM - Free Report) — up 7%
Launched on Jun 17, the fund is designed to provide exposure to biotech companies directly engaged in the testing and treatment of infectious diseases. 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:
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