The coronavirus outbreak is aggravating in some parts of Europe largely due to the cold weather conditions. Worsening the situation, a new variant, called B.1.1.529, has been detected in South Africa with numerous mutations (more than 30) to the spike protein (as stated in a CNBC article).
Various measures are being taken to curtail the spread which can again impact the economic recovery achieved so far from the pandemic-led slump. For instance, a 30-day state of emergency has been declared along with the imposition of several new restrictions in the Czech Republic. In fact, Austria has imposed at least a 10-day-long national lockdown to fight the resurgence. Considering the current situation, the World Health Organization has issued warning that Europe and Central Asia could witness another 700,000 COVID-19 deaths by Mar 1, 2022, per a Euronews article.
Investors who wish to ride the rally from increased preference for the COVID-themed ETFs can consider
Direxion Work From Home ETF ( WFH Quick Quote WFH - Free Report) , Global X Telemedicine & Digital Health ETF ( EDOC Quick Quote EDOC - Free Report) , Global X Education ETF ( EDUT Quick Quote EDUT - Free Report) , Pacer BioThreat Strategy ETF ( VIRS Quick Quote VIRS - Free Report) and ETFMG Treatments Testing and Advancements ETF ( GERM Quick Quote GERM - Free Report) .
Going on, the U.K. is temporarily imposing bans on flights from South Africa and five neighboring countries like Namibia, Lesotho, Eswatini, Zimbabwe and Botswana. Among, all the COVID-related measures, one thing is clear that the global economic recovery that has been achieved so far can be jeopardized.
COVID-Themed ETFs That May Gain
It looks like the remainder of 2021 will continue to bear the brunt of the pandemic blues, before the majority of Americans get vaccinated. Therefore, a COVID-themed ETF could be a smart pick. Against this backdrop, there was a host of launches,keeping the pandemic in focus:
Direxion Work From Home ETF
Launched on Jun 25, 2020, Direxion Work From Home ETF seeks investment results, before fees and expenses, that track the Solactive Remote Work Index. WFH 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. Direxion Work From Home ETF charges a fee of 45 basis points (bps) a year (read:
6 Stay-at-Home ETFs Likely to Gain on Renewed Lockdown Fears). Global X Telemedicine & Digital Health ETF
Global X Telemedicine & Digital Health ETF was launched on Jul 29, 2020. It seeks investment in companies positioned to benefit from advancements in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Healthcare Analytics, Connected Healthcare Devices and Administrative Digitization. Global X Telemedicine & Digital Health ETF charges a fee of 68 bps a year.
Global X Education ETF
Launched on Jul 10, 2020, Global X Education ETFseeks investment 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. EDUT charges a fee of 50 bps a year (read:
Best & Worst Performing ETF Zones of the Nine Months of 2021). Pacer BioThreat Strategy ETF
Pacer BioThreat Strategy ETF debuted on Jun 24, 2020, and aims to gain exposure to the 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. VIRS charges a fee of 70 bps a year (read:
ETFs to Buy as Squid Game Boosts Netflix Q3 Earnings). ETFMG Treatments Testing and Advancements ETF
Launched on Jun 17, 2020, ETFMG Treatments Testing and Advancements ETF is designed to provide exposure to biotech companies directly engaged in the testing and treatment of infectious diseases. GERM is 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.