The coronavirus outbreak has infected more than 2.6 million globally, with above 183,000 casualties, per Johns Hopkins University data. The United States alone has recorded a death toll of more than 46,000. The outbreak has caused an unprecedented collapse of economic activities, as governments are forced to shut down commerce and take social distancing measures in an effort to contain the spread of the virus. Around 90% of Americans have been put under lockdown as coronavirus cases continue to spike.
Against this backdrop, let’s look at some ETF areas that can help you sail smoothly through this crisis:
Biotech ETFs
The race to introduce vaccine and treatment for coronavirus is opening up opportunities, making the biotech sector a prospective space for investments. From positive news related to Gilead Sciences’ GILD remdesivir to progress in development of cell therapies for the treatment of COVID-19, these developments have kept the sector surging. Notably, the most popular ETF in the biotech space, iShares Nasdaq Biotechnology ETF IBB, has gained 14.7% so far in April (as of Apr 22). Other ETFs with considerable exposure to the biotech space are SPDR S&P Biotech (NYSE:XBI) ETF XBI, First Trust Amex Biotechnology Index FBT, ARK Genomic Revolution ETF ARKG and VanEck Vectors Biotech ETF BBH.
Online Retail ETFs
In the current scenario, consumers are opting for online purchases of food items and other goods. In fact, non-store retail sales in March increased 3.1% sequentially and 9.7% year over year. This is driving orders for online retailers like Amazon AMZN, Alibaba (NYSE:BABA) BABA and others. Backed by surging stay-at-home mandates, Amazon, one of the largest e-commerce providers, has been seeing a flurry of new home delivery orders. In such a scenario, Global X E-commerce ETF EBIZ, Amplify Online Retail ETF IBUY, ProShares Long Online/Short Stores ETF CLIX and ProShares Online Retail ETF ONLN make attractive investment options.
Cloud Computing ETFs
In the current scenario of work remotely, cloud computing is emerging as a key technology in the fight against coronavirus. Cloud computing and storage have empowered video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. It is supporting organizations in remotely processing a lot of information, developing and running key applications and services, and also helping employees across the world collaborate while working. Investors can look at the following ETFs that can gain from the current trend -- First Trust Cloud Computing ETF SKYY, Global X Cloud Computing ETF (CLOU) and WisdomTree Cloud Computing ETF WCLD (read: ETFs to Gain on Cloud Computing Growth Amid Coronavirus Crisis).
Robotics ETFs
The robotics market is flooded with opportunities as robots are being used for jobs such as sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling, and delivering food and medicines. Against this background, we have shortlisted the following ETFs for our investors to consider: Global X Robotics & Artificial Intelligence ETF BOTZ, ROBO Global Robotics & Automation ETF ROBO, First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT and iShares Robotics and Artificial Intelligence Multisector ETF IRBO.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (NASDAQ:AMZN): Free Stock Analysis Report
Gilead Sciences, Inc. (NASDAQ:GILD): Free Stock Analysis Report
iShares Nasdaq Biotechnology ETF (IBB): ETF Research Reports
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
SPDR S&P Biotech ETF (XBI): ETF Research Reports
VanEck Vectors Biotech ETF (BBH): ETF Research Reports
First Trust NYSE Arca Biotechnology ETF (FBT): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports
First Trust Cloud Computing ETF (SKYY): ETF Research Reports
ProShares Long Online/Short Stores ETF (CLIX): ETF Research Reports
ARK Genomic Revolution ETF (ARKG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report