It's no secret that more workers are utilizing platforms and services that make it easier to work from home than ever before for the United State's workforce. Examples can be seen by Zoom Video Conference's (NASDAQ: ZM) stock being currently up over 68% in the past 3 months and Slack (NYSE: WORK) for the first half of March adding about 7,000 new paid customers to their workplace software offering. The current growing demand for video conferencing has also been demonstrated by Microsoft's (NASDAQ: MSFT) Teams handling 2.7 billion minutes of calls by users on March 31 alone.
To match the investing demand into these now popular technologies, Direxion is planning to launch a new "work-from-home" Exchange-Traded Fund that will run under the ticker WFH. According the to ETF provider's filing made to the Securities and Exchange Commission on Tuesday, the fund will track an index that provides technological infrastructure that enables remote work. This can include cybersecurity, cloud technologies and remote communication. However, the ETF is not designed to outperform the index it tracks.
For an overview of the broader market, Wall Street has shown some positive signs of life this week due to data showing that the rate of coronavirus infections may be slowing in the United States. All other negative data that has been reported so far this week, like unemployment claims, was also anticipated by market participants, causing no reactionary blow to stocks.
Now seems to be a great time to start anticipating a market rebound that will come once the coronavirus bear market is over.
Invesco QQQ ETF (NASDAQ: QQQ) is a great ETF to invest in during times of stock market rebounds because of its volatile nature making it more likely to lead against the broader market. This fund tracks 100 of the most innovative companies trading on the Nasdaq, with the led holdings being communications and consumer discretionary.
An even broader market ETF that focuses on growth is iShares Russell 1000 Growth ETF (NYSE: IWF). Although the fund only has half of the assets as Invesco QQQ, technology is a major part of this fund. This fund also has a large amount of mid and large cap companies that asset managers expect to grow.
Another great fund to consider in anticipation of consumer spending growth is Consumer Discretionary Select Sector SPDR Fund (NYSE: XLY). Usually during times of economic downturn, consumer discretionary spending decreases due to financial anxieties. But as every bear market is ended by a bull rally, consumer spending will always return once an economy gains back its strength. However, when the spending returns its usually difficult to determine what companies will benefit right away. This SPDR fund invests in S&P 500 (NYSE: SPY) companies that are expected to bounce back like retail, hotels and restaurants, thus giving an investor a better chance of gaining once consumer spending rebounds.