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The virtual reality (VR) industry is expected to perform pretty well in the upcoming months due to the increasing prevalence of hybrid working and consistent technological advancements. So, investors looking to cash in on the industry’s growth in a relatively less risky manner could invest in VR-stock-focused ETFs such as Communication Services Select Sector SPDR Fund (XLC), VanEck Vectors Semiconductor ETF (SMH), and Global X Robotics & Artificial Intelligence ETF (BOTZ).The COVID-19 pandemic increased the demand for virtual reality (VR) as restrictions compelled most businesses and schools to operate remotely. VR is believed to be a game-changer as it digitally creates a three-dimensional environment and is the solution to some of the many problems the pandemic brought forward. The VR industry should witness further demand with the resurgence of COVID-19 cases and the increasing adoption in hybrid working environments.
Increasing penetration of advanced technologies and rising investments in cloud-based services are some of the key factors that should drive the growth of the VR market. According to a Grand View Research report, the VR market is expected to grow at a CAGR of 18% between 2021 and 2028.
While it may be risky to bet on a particular VR stock with rising competition in this space, a less risky way to capitalize on the industry’s growth could be betting on VR-focused ETFs. We think prominent VR-focused ETFs Communication Services Select Sector SPDR Fund (XLC), VanEck Vectors Semiconductor ETF (SMH), and Global X Robotics & Artificial Intelligence ETF (BOTZ) could be solid bets now.
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