The Covid-19 pandemic certainly enhanced the current digital economy by spurring more reliance on tech. As such, the sector’s growth opens up opportunities for certain exchange-traded funds (ETFs) that are poised to gain from the expansion.
The rise in tech is also fueling more job growth that will require certain skills to navigate the new digital economy.
“Although the COVID-19 pandemic sped up some aspects of digital transformation—including many companies’ embrace of cloud platforms and remote work—technology is always evolving at a rapid pace,” a Dice.com article noted. “If you’re a technologist (or an aspiring one), you need to stay constantly on top of developments within your specialization, whether cybersecurity, cloud, or machine learning.”
The article went on to ask: “But what aspects of this digital transformation are companies choosing to embrace? And what skills do you need to take advantage of that?”
“We’re seeing a lot of traction around Azure identity and access, because one of the results of having these remote workforces is accessing information from remote devices that may or may not be owned by the company,” said Mike Engels, principal consultant at Chicago-based strategic consulting services firm Netrix. “Companies are looking for people with mobile device management, and SSO skills, because those are toolsets that are let team members get secure access.”
3 ETFs to Watch
One fund to watch is the Global X Cloud Computing ETF (CLOU). CLOU seeks to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services.
The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.
Another fund to consider is the First Trust NASDAQ Cybersecurity ETF (CIBR ). CIBR seeks investment results that generally correspond to the price and yield f an equity index known as the Nasdaq CTA Cybersecurity IndexSM, which is comprised of securities of companies classified as “cybersecurity” companies by the CTA.
Lastly, investors should give Global X Artificial Intelligence & Technology ETF (AIQ) a look. AIQ seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Artificial Intelligence and Big Data Index. The fund invests at least 80% of its total assets in the securities of the underlying index, which is designed to track the performance of companies involved in the development and utilization of artificial intelligence and big data.