Thanks to coronavirus-led lockdowns across most countries, the work-and-learn-from-home trend has gathered steam. At least, the service and education sectors are containing the economic and social impact of the pandemic in this manner.
Although lockdowns are gradually being lifted, the fear of a second wave of virus contagion has now taken markets in its grip. As a result, Twitter (TWTR - Free Report) has allowed employees to keep working from home “forever” if they wish to.
Twitter offices will remain closed until at least September, except for some necessities. The opening would also be done in a measured manner. Other major tech firms, including Facebook (FB) and Alphabet (GOOGL), have extended their work from home policies through the end of the year.
It is highly likely that the WFH trend is going to be a new normal in the coming days. And industries serving remote working would gain ahead. Below we highlight some of such industries and the related ETFs.
Cloud was an emerging concept even before the lockdown as companies were discarding their own servers and shifting to the cost-effective renting model, giving huge businesses to mega cloud owners. Now, the virus outbreak has ballooned its demand. WisdomTree Cloud Computing Fund (WCLD - Free Report) , Global X Cloud Computing ETF (CLOU - Free Report) and First Trust Cloud Computing ETF (SKYY - Free Report) stand to gain further in the coming days.
The above discussion makes it clear that semiconductors are in high demand now, with China playing the lead role. Cloud companies are “allowing new and existing customers to use more resources for free to help maintain operations,” said analyst Yih Khai Wong at Canalys. This boosted semiconductor demand.
On Apr 6, South Korea, which houses the world’s biggest memory chip maker Samsung Electronics Co Ltd, reported a 20% jump in semiconductor exports over the past month, per Reuters. All these should boost the likes of iShares PHLX Semiconductor ETF (SOXX - Free Report) .
Data Center REITs
Data center REITs own and manage facilities that help customers safely store data. These REITs provide continued power supplies, air-cooled chillers and physical security. The boom in cloud business should support the space. This puts the spotlight on Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR - Free Report) .
Rising computer sales should put electronic retailers in a sweet spot. No doubt, electronics retailers with online presence like Amazon, Wal-Mart (WMT - Free Report) , BestBuy (BBY - Free Report) , AliExpress.Com of Alibaba (BABA - Free Report) and eBay (EBAY - Free Report) will gain from the trend.
While Amazon, Alibaba and eBay have considerable weights in ProShares Online Retail ETF (ONLN - Free Report) , investors can tap Wal-Mart and Best Buy through First Trust Nasdaq Retail ETF (FTXD - Free Report) .
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