A work-from-home ETF is in progress amid spiking demand for stocks benefiting from coronavirus quarantines
- Direxion is planning to start a new "work-from-home" exchange traded fund, according to a Tuesday filing to the Securities and Exchange Commission.
- The fund will trade under the ticker "WFH."
- WFH will track an index with exposure to technological infrastructure that enable remote work, such as cyber security, cloud technologies, online documentation and project management, and remote communication.
- Read more on Business Insider.
The coronavirus pandemic has sent workers around the world home to do their jobs remotely to curb the spread of disease. One fund just launched an exchange-traded fund for investors to get in on the trend.
Direxion is planning to start a new "work-from-home" ETF under the ticker WFH, according to a Tuesday filing to the Securities and Exchange Commission. The fund will track an index that provides exposure to technological infrastructure that enable remote work, such as cyber security, cloud technologies, online documentation and project management, and remote communication.
Technology companies have benefited from the coronavirus pandemic even as markets have whiplashed. Last week, Microsoft said that it saw usership of its cloud services spike 775%.The stock has gained about 11% in the week since.
Zoom stock, while recently roiled by cyber security controversy, has also benefited from the coronavirus crisis and was up about 73% year to date through Wednesday's close.
The ETF is not intended to outperform the index it tracks, according to a filing. It's also non-leveraged, unlike many other Direxion ETFs. What that means is that it does not aim to amplify the returns of the underlying index.
The offering is in line with Direxion's focus to broaden its thematic offerings to "buy-and-hold" investors, Bloomberg reported, citing David Mazza, head of ETF product.
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