Liquid Alternatives: The New Theme in Town – A Work From Home ETF

April 9, 2020 | Liquid Alternatives, News

Fund issuer Direxion is jumping onto the remote working bandwagon.

Direxion has filed with the SEC for the Direxion Work From Home ETF. The ETF will track the Solactive Remote Work Index. The Index comprises 40 U.S. listed securities and ADRs that have significant exposure to “work from home” needs. These are remote communications, cybersecurity, project and document management, and cloud technologies. Furthermore, the new ETF will trade under the ticker WFH. (Yahoo Finance)

Coronavirus and work-from-home

The coronavirus has forced countries all over the world to declare lockdowns and social distancing. This is a desperate effort to contain the spread of the virus. As a result, a vast majority of the workforce are under a sort of confinement at home. Therefore, businesses have turned to various online tools and services to allow these employees to perform their workplace functions from home.

According to CFRA Research’s Todd Rosenbluth, companies providing the means to work from home are, therefore, likely to perform well.

“This ETF combines some popular, well-established thematic strategies focused on cloud computing and cybersecurity with remote learning and document management that are all the more pressing, given COVID-19 concerns are likely to remain,” said Rosenbluth, CFRA’s director of ETF research.

New ETF shows Direxion’s tilt towards buy-and-hold

However, the Work From Home ETF from Direxion does not carry gearing, unlike most of the issuer’s products.

Last month Direxion liquidated and closed eight leveraged ETFs “due to their inability to attract sufficient investment assets.” Leveraged ETFs are geared towards short-term traders.

Furthermore, in February, Direxion issued three new unleveraged ETFs: Direxion MSCI USA ESG – Leaders vs. Laggards ETF (NYSEARCA: ESNG), Direxion Flight to Safety Strategy ETF (NYSEARCA: FLYT), and Direxion S&P 500 High minus Low Quality ETF (NYSEARCA: QMJ).

“While leveraged ETFs remain part of their lineup, they have expanded beyond the nice and highly tactical short-term oriented products,” commented Rosenbluth.

Related Story:  Liquid Alternatives: 5G-Themed, “The First 5G ETF” (NYSE: FIVG) Rakes in $200 Million                                                 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…