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Amid the Tech Slump, Internet ETFs Most Resilient to Virus
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Most sound sectors have succumbed to the coronavirus-induced bloodbath in recent times, Technology being no exception. Technology Select Sector SPDR Fund (XLK - Free Report) has lost 6.9% in the past month (as of Mar 3, 2020), lower than the 7.4% slump of the S&P 500-based ETF SPY and 8.4% decline of the Dow Jones-based ETF (DIA - Free Report) .
However, not all corners of the technology world were equally beaten down. Internet ETFs have shown strength to a large extent. The rapid emergence of cutting-edge technology, including cloud computing, big data, IoT, VR, AI, has been driving the sector. The growing adoption of 5G technology — the next wireless revolution — is opening up further opportunities.
Internet stocks have all the more reason to stay safe as it has less to do with human contact. The coronavirus scare should favor the online retailing industry as any kind of lockdown and self-imposed quarantine should boost demand for online shopping and other kinds of Internet activities. Chinese online retailer JD.com reported 215% year-over-year growth in its online grocery sales during a 10-day period between late January and early February.
Given this, investors might want to tap the space with the best-performing technology ETFs in the virus-infected past month. For them, we have highlighted some of the technology ETFs that have lost lesser than the broad tech fund XLK in the past month (as of Mar 3, 2020).
Though coronavirus is causing supply disruptions in the video game industry, demand for the same should stay strong as the quarantined people need something for indoor entertainment.
The underlying EEFund Video Game Tech Index tracks companies actively involved in the electronic gaming industry, including the entertainment, education and simulation segments. It charges 75 bps in fees (read: Play "New Super Cycle" for Video Games With 3 ETFs & Stocks).
UP Fintech China-U.S. Internet Titans ETF — Down 2.9%
The Nasdaq China US Internet Tiger Index seeks to track the performance of the 10 largest publicly-traded Chinese Internet companies and the 10 largest publicly-traded U.S. Internet companies. Tencent, Amazon, Alibaba, Alphabet, Facebook and JD.Com are the top holdings of the fund.
ARK Next Generation Internet ETF (ARKW - Free Report) — Down 3.6%
This ETF is actively-managed. It offers exposure to Cloud Computing & Cyber Security, e-commerce, Big Data, AI and so on. While Tesla is in a top spot, Square, Roku, Xilinx and Twitter round out the top five positions. It charges 76 bps in fees.
OShares Global Internet Giants ETF (OGIG - Free Report) — Down 4.4%
The fund looks to give investors a means of tracking stocks exhibiting quality and growth characteristics in the Internet sector. Amazon, Alibaba, Alphabet, Facebook, Microsoft and Tencent are among the top holdings of the fund (read: Tech ETFs & Stocks Outperforming in 2020).
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Amid the Tech Slump, Internet ETFs Most Resilient to Virus
Most sound sectors have succumbed to the coronavirus-induced bloodbath in recent times, Technology being no exception. Technology Select Sector SPDR Fund (XLK - Free Report) has lost 6.9% in the past month (as of Mar 3, 2020), lower than the 7.4% slump of the S&P 500-based ETF SPY and 8.4% decline of the Dow Jones-based ETF (DIA - Free Report) .
However, not all corners of the technology world were equally beaten down. Internet ETFs have shown strength to a large extent. The rapid emergence of cutting-edge technology, including cloud computing, big data, IoT, VR, AI, has been driving the sector. The growing adoption of 5G technology — the next wireless revolution — is opening up further opportunities.
Internet stocks have all the more reason to stay safe as it has less to do with human contact. The coronavirus scare should favor the online retailing industry as any kind of lockdown and self-imposed quarantine should boost demand for online shopping and other kinds of Internet activities. Chinese online retailer JD.com reported 215% year-over-year growth in its online grocery sales during a 10-day period between late January and early February.
Given this, investors might want to tap the space with the best-performing technology ETFs in the virus-infected past month. For them, we have highlighted some of the technology ETFs that have lost lesser than the broad tech fund XLK in the past month (as of Mar 3, 2020).
ETFMG Video Game Tech ETF (GAMR - Free Report) — Down 0.15%
Though coronavirus is causing supply disruptions in the video game industry, demand for the same should stay strong as the quarantined people need something for indoor entertainment.
The underlying EEFund Video Game Tech Index tracks companies actively involved in the electronic gaming industry, including the entertainment, education and simulation segments. It charges 75 bps in fees (read: Play "New Super Cycle" for Video Games With 3 ETFs & Stocks).
UP Fintech China-U.S. Internet Titans ETF — Down 2.9%
The Nasdaq China US Internet Tiger Index seeks to track the performance of the 10 largest publicly-traded Chinese Internet companies and the 10 largest publicly-traded U.S. Internet companies. Tencent, Amazon, Alibaba, Alphabet, Facebook and JD.Com are the top holdings of the fund.
ARK Next Generation Internet ETF (ARKW - Free Report) — Down 3.6%
This ETF is actively-managed. It offers exposure to Cloud Computing & Cyber Security, e-commerce, Big Data, AI and so on. While Tesla is in a top spot, Square, Roku, Xilinx and Twitter round out the top five positions. It charges 76 bps in fees.
OShares Global Internet Giants ETF (OGIG - Free Report) — Down 4.4%
The fund looks to give investors a means of tracking stocks exhibiting quality and growth characteristics in the Internet sector. Amazon, Alibaba, Alphabet, Facebook, Microsoft and Tencent are among the top holdings of the fund (read: Tech ETFs & Stocks Outperforming in 2020).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>