Work from home boom spawns specialist ETF
As working from home takes on a life of its own, the trend has now become an investment strategy after the launch of a specialist exchange-traded fund in the US.
The Direxion Work From Home ETF will track the Solactive Remote Work Index, a 40 stock index of work from home-friendly product and service providers. This means areas like remote communications, cyber security, document management and cloud technologies.
Communications platform Twilio, cloud tech specialist Inseego and Crowdstrike, the cyber security firm, are the top three stakes in the ETF.
UK investors won’t be able to buy the ETF due to EU regulations, yet there are some UK funds also tapping into the broader theme.
For example, Polar Capital Global Technology Fund (B42W4J8) invests in companies helping to make working from home possible. These include cloud infrastructure, software-as-a-service companies and digital payments providers, while Crowdstrike and video meetings platform Zoom are among the top 10 stakes of Allianz Technology Trust (ATT). Both funds invest in Microsoft, which owns collaboration platform Teams.
The SPDR MSCI World Technology UCITS ETF (WTEC) offers an ETF option on the home-working theme, aiming to capture future growth of the wider technology industry.
Disclaimer: The writer Steven Frazer owns shares in Allianz Technology