Investors this week have moved beyond the coronavirus pandemic and began betting on statewide reopenings as the catalyst to lift the economy from its deepening lows. Exchange-traded funds that follow major market benchmarks have also gained with the market due to the increased positivity. The SPDR Dow Jones Industrial Average ETF
QQQ has shown that it is less affected by the coronavirus compared to other major index ETFs due to its portfolio. The ETF is loaded heavily with the Technology sector, which are followed by large percentages of Communication Services, Consumer Discretionary and Health Care. Technology companies--especially Facebook
Communication Services also offers QQQ an advantage, for this sector contains large internet providers that have become an essential utility during the pandemic. Furthermore, Consumer Discretionary, which includes more cyclical stocks, and Health Care, which contains more defensive stocks, balance each other out, helping QQQ weather more unfavorable market conditions.
Other tech-focused ETFs include Technology Select Sector SPDR Fund
In addition to tech giants, fintech and ecommerce ETFs have also gained this week, mostly due to the heighten need for contactless transactions and surges in online shopping. Lead by companies like PayPal
