Work From Home ETF Zooms Into $100 Million Territory – Yahoo Finance

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Add the Direxion Work From Home ETF (NYSE: WFH) to the list of rookie thematic exchange-traded funds that are excelling right out of the gates.” data-reactid=”19″>Add the Direxion Work From Home ETF (NYSE: WFH) to the list of rookie thematic exchange-traded funds that are excelling right out of the gates.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What Happened” data-reactid=”20″>What Happened

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="WFH is the latest ETF that's just around three months old to join the prestigious $100 million in assets under management club, entering that group on Tuesday. That confirms at least two important points.” data-reactid=”21″>WFH is the latest ETF that’s just around three months old to join the prestigious $100 million in assets under management club, entering that group on Tuesday. That confirms at least two important points.

First, WFH was a well-timed launch. Second, and more importantly, advisors and investors believe in the work from theme and as the first ETF to address that theme, WFH is being rewarded.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Why It’s Important” data-reactid=”27″>Why It’s Important

WFH, which has a few weeks left before its official three-month anniversary, follows the Solactive Remote Work Index. That benchmark isn’t just a hodgepodge of technology stocks. It’s rooted in four “pillars” related to remote work: cloud computing, cybesecurity, online document management and remote communications.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses key words to evaluate large volumes of publicly available information, such as annual reports, business descriptions and financial news,” according to Direxion.” data-reactid=”29″>“Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses key words to evaluate large volumes of publicly available information, such as annual reports, business descriptions and financial news,” according to Direxion.

That’s all fine and dandy, but what’s really important with thematic ETFs, WFH included, is that these funds address themes with long-term viability. A WFH critic may be apt to say “Hey, employees are going to head back to the office after COVID-19 is defeated.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Maybe. Maybe not. In fact, plenty of signs point to WFH being a viable long-term play.” data-reactid=”31″>Maybe. Maybe not. In fact, plenty of signs point to WFH being a viable long-term play.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What’s Next” data-reactid=”32″>What’s Next

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Plenty of big-name companies are looking to fill remote roles and plenty of employees are finding they enjoy the home office life. It’s no wonder so many market observers are concerned about the fate of office real estate in this country. That’s a win/lose scenario whereby the winners are clearly some WFH components.” data-reactid=”33″>Plenty of big-name companies are looking to fill remote roles and plenty of employees are finding they enjoy the home office life. It’s no wonder so many market observers are concerned about the fate of office real estate in this country. That’s a win/lose scenario whereby the winners are clearly some WFH components.

Adding to the long-term thesis for WFH are studies confirming that home workers are more productive and take less time off. With many companies looking to assert their environmental stewardship, home-based staff is an easy box to check that box because with a reduced number of employees commuting to an office, the carbon footprint is dramatically reduced.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="WFH allocates almost 89% of its weight to tech stocks – a fine overweight to have in 2020. It's top 10 holdings include Twilio (NYSE: TWLO), Okta (NASDAQ: OKTA) and, yes, Zoom Video Communications (NASDAQ: ZM). After gaining 4% yesterday on above-average volume, WFH is up 15.74% since inception.” data-reactid=”35″>WFH allocates almost 89% of its weight to tech stocks – a fine overweight to have in 2020. It’s top 10 holdings include Twilio (NYSE: TWLO), Okta (NASDAQ: OKTA) and, yes, Zoom Video Communications (NASDAQ: ZM). After gaining 4% yesterday on above-average volume, WFH is up 15.74% since inception.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”36″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”40″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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