The Nasdaq Composite Index staged a nice comeback after last week’s sell-off that wiped out about $1.1 trillion from the value of the index. Most of the rally was driven by tech stocks that gained momentum on Federal Reserve Chair Jerome Powell’s testimony.
As such, some ETFs have gained more than 5% on the tech rally. These include Global X Blockchain ETF (BKCH – Free Report) , VanEck Vectors Digital Transformation ETF (DAPP – Free Report) , Simplify Volt Fintech Disruption ETF (VFIN – Free Report) , Bitwise Crypto Industry Innovators ETF (BITQ – Free Report) and Blockchain & Bitcoin Strategy ETF (BITS – Free Report) . These funds seem excellent choices to play the rebound in the tech sector.
The testimony revealed no surprises and pointed to Jerome Powell’s likely confirmation for a second term in the job. Powell sounded less hawkish than expected and painted a soft-landing picture for the economy. He assured investors that the central bank’s tightening plans, which include higher interest rates and a reduction in its asset holdings, were necessary to maintain the economic expansion.
Further, the tech sector outlook remains upbeat given the global digital shift that has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication and 5G technology should continue to drive the sector higher (read: 5 Most-Loved ETFs to Start 2022).
In a tight policy era, technology seems one of the safest sectors as most companies are sitting on a huge cash pile. The cash reserves will ensure that these companies are not plagued by any financial trouble, even in a rising interest rate environment.
Global X Blockchain ETF (BKCH – Free Report)
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket with double-digit allocation to the top three firms.
Global X Blockchain ETF has gathered $103.8 million in its asset base and trades in an average daily volume of 195,000 shares. It charges 50 bps in annual fees.
VanEck Vectors Digital Transformation ETF (DAPP – Free Report)
VanEck Vectors Digital Transformation ETF aims to offer exposure to the companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 25 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 80,000. DAPP has accumulated $44.6 million in its asset base (read: Why These Tech ETFs Are Bargain Buys).
Simplify Volt Fintech Disruption ETF (VFIN – Free Report)
Simplify Volt Fintech Disruption ETF seeks to offer exposure to the most disruptive fintech companies that are on the forefront of cashless payments. It aims to invest heavily across Square (SQ) stock and Square call options and also Upstart stock and Upstart call options. A modest put option overlay is designed to help mitigate sharp market crashes.
Simplify Volt Fintech Disruption ETF has accumulated $1.9 million and charges 0.95% in annual fees.
Bitwise Crypto Industry Innovators ETF (BITQ – Free Report)
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele.
Holding 30 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top three firms with nearly double-digit exposure each. It charges 85 bps in annual fees from investors and trades in an average daily volume of 185,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $112.7 million in its asset base.
Blockchain & Bitcoin Strategy ETF (BITS – Free Report)
Blockchain & Bitcoin Strategy ETF is an actively managed fund that seeks to capture the long-term growth potential of the blockchain and digital assets theme. It takes long positions in U.S. listed bitcoin futures contracts and invests, directly and indirectly, in companies positioned to benefit from the increased adoption of blockchain technology. Blockchain & Bitcoin Strategy ETF will not invest directly in bitcoin, and it currently delivers exposure to blockchain companies through other ETFs, including the affiliated Global X Blockchain ETF (read: Top ETF Stories of 2021 & 2022 Outlook).
Blockchain & Bitcoin Strategy ETF has newly debuted in the space and attracted $7.8 million in its asset base in just two months. It charges 65 bps in annual fees and trades in an average daily volume of 13,000 shares.
