4 ETFs Areas to Consider When Investing During the Pandemic

It’s over a year since the pandemic started, and most industries have yet to recover from the economic disruption. But despite all the problems, investors worldwide continue to set their eyes on various opportunities to expand their portfolios in the new normal. Today’s online activities took over the usual transactions, which is why investments like Exchange Traded Funds, also known as ETFs, continue to thrive and succeed during these challenging times.

Since the preferences and lifestyle of everyone around the world shifted due to the threat of the virus, some ETFs remained grounded and became more popular despite the COVID-19 crisis. Here are some of the most successful areas the exchange traded funds investors must look into today.

#1: Video Gaming Exchange Traded Funds 

Since more people were compelled to stay at home at the onset of the pandemic, the video game industry boomed significantly in 2020. In Australia alone, the industry revenue has recorded a 7% increase in its year-on-year performance with total revenue of $3.4 billion. Experts expect this ongoing trend to remain in the post-pandemic era.

Because of the steady performance of the video game market, investors can consider looking into various video games and sports ventures. In addition, they can also consider other entertainment exchange traded funds options like online betting and leisure since the market has become more lucrative since the start of the pandemic.

#2: Sustainable Investing Exchange Traded Funds

The overwhelming health crisis has a major effect on the investing industry. It prompted the market to show more interest in putting their money on environmental, social and governance (ESG) funds. Based on the Forum for Sustainable and Responsible Investment report in 2020, this area saw a 42% increase between 2018 and 2020.

Aside from the pandemic, other critical factors like the various geopolitical tensions in different nations, the rising protests to curb racism, and the shift in climatic conditions drive the emerging popularity of this ETFs field. Experts believe this progress will continue in the new normal.

#3: Biotech Exchange Traded Funds 

The talks about vaccines and other treatments to address the COVID-19 pandemic continue to make the news in all parts of the world. It helps make the biotechnology sector thrive these days.

The development of vaccines and other possible medicines to cure COVID-19 patients open up more opportunities for investors. At the moment, the end of the pandemic is still far from sight due to the emergence of more variants. Therefore, it makes investing in this area a good move for any investor.

#4: E-Commerce Exchange Traded Funds 

Shopping online had become a norm in previous years. But its popularity significantly surged further since more people are attempting to lessen most forms of human-to-human interactions to avoid contracting the virus. Because of the trend, online sales grew by almost 50% since 2019.

Based on a report from Statista, the global e-commerce industry may reach a whopping $3.3 trillion in 2025. It means the practice of buying goods and other products online will remain a trend in the coming years. Therefore, it makes a perfect area to invest in for all types of exchange traded funds investors.

These are just some of the thriving investment areas that investors should look into when building or expanding their portfolios. The pandemic might be far from over, but the ETF investments may still succeed despite the unstable times that the world has to face in the new normal.
