Three ETFs Set To Move Higher

With over 2,300 ETFs to choose from, its not easy finding ones that excite you enough to put hard-earned money into with the goal that it grows substantially higher in the future. Luckily for you, I am continually searching high and low to find ETFs the average investor like yourself can not only buy but own over a period sometimes just months or other times years with the confidence that you will see a solid return. The current economic environment adds another challenge on top of finding quality ETFs to invest in, which is why I will also thoroughly explain why now is potentially a good time to buy.

The first ETF I would like to highlight is one that has already received a boost and will likely continue to move higher due to the Covid-19 Pandemic and how this global problem will likely have a lasting effect on the flow of business. The SoFi Gig Economy ETF (GIGE) has an inception date of May 2019 but now finds itself in a perfect storm situation where the fund was developed to benefit from the "gig economy," which due to the pandemic and social distancing requirements seem to be the sweet spot everyone wants to be. The fund's prospectus states its allocation based on these metrics;

30% to 60% Companies that directly facilitate and participate in revenue generation from gig economy businesses (e.g., app-based platforms, auction sites, web-based stores, and other commission-based platforms) 20% to 40% Companies that enable or support gig economy businesses in marketing and sales functions (e.g., social media platforms, messaging platforms) 5% to 20% Companies that facilitate financial transactions for gig economy businesses through apps or web-based platforms 5% to 15% Companies that support the ability of individuals to operate a gig economy business without participating in a commission or revenue-based model (e.g., companies providing health care, technology, or other back office services) 0% to 10% Other companies that are expected to benefit from the growth of gig economy businesses and associated lifestyle changes for individuals engaged in gig economy businesses

The funds top holdings include Twitter (TWTR), Alibaba (BABA), MercadoLibre (MELI), PayPal (PYPL), Square (SQ), and Lending Tree (TREE) to name a few. All companies that are primed to continue benefiting from the current pandemic and are set-up to be rock stars even once we have moved past the Covid-19 situation. And did I mention the fund is up 37% year-to-date? Continue reading "Three ETFs Set To Move Higher"

New Sports Betting ETF Hits the Market

Since the world of sports was put on hold due to the spread of Covid-19 and the attempt to slow its spread, many market participants have noted the rise in 'retail' investors. But, many have claimed that these 'retail' investors aren't just your average mom and pop investor, the young high school or college kid who wants to make a little money while stuck at home, (although we have seen a slight uptick from these age groups and demographics participating in the stock market over the past few months.) Some believe the largest new group of investors with the most impact on the markets in recent weeks are the ex-sports gamblers, especially those gamblers that prefer online sports gambling.

I say "ex"-sports gamblers because besides just recently when PGA Tour Golf and NASCAR began competing again, sports gamblers have not been able to bet on anything when all sports activities were shut down due to Covid-19. So, it is not to say that once professional major league sports begin to operate once again in the US, these sports gamblers won't go back to their old ways of betting on games and not stocks.

However, their 'old' ways of gambling may be changing in a big way in the near term. The online fantasy sports gambling website, DraftKing (DKNG), recently went public and was already operating an online sportsbook and casino before the countrywide shutdown. Furthermore, DraftKings competitor FanDuel, owned by Flutter Entertainment (FLTR), had also already begun to operate online sports gambling websites and apps in states that have legalized sports betting before the Covid-19 shutdowns and stoppage of professional sports. Even MGM Resorts (MGM) has begun partnering with companies to build online sportsbooks and casinos in states those activities are legal.

Some believe that due to the Covid-19 shutdowns, State and local governments who currently don't allow sports betting or online sports gambling will pass laws to allow these activities in the near term as governments try to find new forms of tax revenue. So, while not only is it possible that sports gamblers are now gambling on stocks, but they may be able to legally gamble on sports, regardless of where they live, soon. Continue reading "New Sports Betting ETF Hits the Market"