The number of coronavirus cases continue to risein the world’s largest economy. Around 30.1 million people in the United States have been infected since January 2020 along with a death toll of more than 546,000. Globally, about 125.6 million COVID-19 cases have been reported along with a death toll of 2.8 million since the beginning of the outbreak, per a CNN report.

The resurging cases have frightened investors as they fear that implementation of new lockdown measures to control the spread may hurt the global economic recovery achieved so far, following the reopening of economies. In particular, stocks that were gaining from the re-opening economy belonging to sectors like travel, energy, industrial, materials and retail are likely to beimpacted.

The energy sector bled profusely owing to the pandemic-induced historically low oil price levels, thanks to the dual blows of low demand and surplus supplies. Notably, a surge in coronavirus cases also weighed on oil demand. Once again oil prices lost more than 4% on Mar 25 largely due to growing worries about dwindling demand in the event of a round of lockdowns.

It is worth noting here that health experts are continuously issuing warnings against reopening of the economy amid the emergence and spread of COVID-19 variants. Despite the accelerated vaccine rollout programs, the United States is also seeing a rise in coronavirus cases. 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 is going to suspend all the incoming flights from Brazil, Chile and Mexico from Mar 27, per a CNN report.  

Commenting on the current condition, Brad McMillan, chief investment officer at Commonwealth Financial Network said that “despite the vast improvements, the third pandemic wave left large parts of the population vulnerable both medically and economically. That damage will take time to heal. Vaccinations will get that spread under control, but it will take time,” as quoted in a CNBC article.

COVID-Themed ETFs That May Gain

It feels like the first half of 2021 will continue to bear the brunt of the pandemic blues considering the pandemic’s renewed resurgence thanks to multiple mutants, before majority of 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 Quick QuoteWFH - Free Report) — up 31.8% since launch

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 Quick QuoteEDOC - Free Report) — up 27.4%

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: Power-packed ETFs for Your Portfolio in 2021).

Global X Education ETF — up 13.7%

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 Quick QuoteVIRS - Free Report) — up 15.3%

The fund debuted on Jun 24, 2020, and seeks to gain exposure to U.S. companies, which 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: ETFs to Buy as Zoom Shares Surge on Stellar Q4 Earnings).

ETFMG Treatments Testing and Advancements ETF (GERM Quick QuoteGERM - Free Report) — up 21.9%

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: Novavax ETFs to Shine Bright on Positive Vaccine Update).

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