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COVID-Themed ETFs in Focus Amid Soaring Cases

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The coronavirus outbreak continues to aggravate globally, as the number of cases has now crossed the grim mark of 91 million. The world’s largest economy continues to struggle with the rising number of coronavirus cases as it has recorded more than 22 million COVID-19 cases. Further worsening the situation, the surging number of hospitalizations is cramping up medical facilities.

Sadly, death toll in the United States is near 380,000 since the beginning of the pandemic. Highlighting this paralysing condition in the nation, a CNN report states that the country registered a record-high number of 4,327 new Covid-19 deaths on Jan 12, per data from Johns Hopkins University. On the same day, the country also recorded 215,805 new coronavirus cases.

Considering the worsening situation, the Centers for Disease Control and Prevention (CDC) has announced that it will make it mandatory for all air travelers to the United States to show a negative coronavirus test beginning Jan 26, per a CNN article.

Meanwhile, the inoculation process among people has kicked off, but it is being carried out at a slightly slower pace which looks a little worrisome. Per the CDC data, the United States has distributed at least 27,696,150 COVID-19 vaccines across its length and breadth (as mentioned in a CNN report). Notably, around 9,327,138 people have been administered their first shot of vaccine.

WHO’s chief scientist Dr. Soumya Swaminathan has cautioned that herd immunity will not be attained in 2021 despite the ongoing inoculation process, and social-distancing measures will need to be adhered, per a CNN report.

COVID-Themed ETFs That Can Gain

It feels like the first half of 2021 will continue to bear the brunt of the pandemic blues, before all Americans are vaccinated and therefore, a COVID-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 - Free Report)

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: ETF Strategies to Play as Coronavirus Outbreak Aggravates).

Global X Telemedicine & Digital Health ETF (EDOC - Free Report)

This fund was launched on Jul 29, 2020. It seeks to invest in companies positioned to benefit from advancements 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: ETF Market Outlook & Picks for 2021).

Global X Education ETF (EDUT - Free Report)

Launched on Jul 10, 2020, 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.

Pacer BioThreat Strategy ETF (VIRS - Free Report)

The fund debuted on Jun 24, 2020, 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 Q3 Earnings and Revenues Top: ETFs to Buy).

ETFMG Treatments Testing and Advancements ETF (GERM - Free Report)

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. 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: Top Sector ETFs of Record-Setting Last Week).

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