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Most sound sectors have succumbed to the coronavirus-induced bloodbath in recent times, Technology being no exception. Technology Select Sector SPDR Fund XLK has lost 6.9% in the past month (as of Mar 3, 2020), lower than the 7.4% slump of the S&P 500-based ETF (ASX:SPY) and 8.4% decline of the Dow Jones-based ETF (TSXV:DIA) .
However, not all corners of the technology world were equally beaten down. Internet ETFs have shown strength to a large extent. The rapid emergence of cutting-edge technology, including cloud computing, big data, IoT, VR, AI, has been driving the sector. The growing adoption of 5G technology — the next wireless revolution — is opening up further opportunities.
Internet stocks have all the more reason to stay safe as it has less to do with human contact. The coronavirus scare should favor the online retailing industry as any kind of lockdown and self-imposed quarantine should boost demand for online shopping and other kinds of Internet activities. Chinese online retailer JD.com reported 215% year-over-year growth in its online grocery sales during a 10-day period between late January and early February.
Given this, investors might want to tap the space with the best-performing technology ETFs in the virus-infected past month. For them, we have highlighted some of the technology ETFs that have lost lesser than the broad tech fund XLK in the past month (as of Mar 3, 2020).
ETFMG Video Game Tech ETF GAMR — Down 0.15%
Though coronavirus is causing supply disruptions in the video game industry, demand for the same should stay strong as the quarantined people need something for indoor entertainment.
The underlying EEFund Video Game Tech Index tracks companies actively involved in the electronic gaming industry, including the entertainment, education and simulation segments. It charges 75 bps in fees (read: Play "New Super Cycle" for Video Games With 3 ETFs & Stocks).
UP Fintech China-U.S. Internet Titans ETF TTTN — Down 2.9%
The Nasdaq China US Internet Tiger Index seeks to track the performance of the 10 largest publicly-traded Chinese Internet companies and the 10 largest publicly-traded U.S. Internet companies. Tencent, Amazon (NASDAQ:AMZN), Alibaba (NYSE:BABA), Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB) and JD.Com are the top holdings of the fund.
ARK Next Generation Internet ETF ARKW — Down 3.6%
This ETF is actively-managed. It offers exposure to Cloud Computing & Cyber Security, e-commerce, Big Data, AI and so on. While Tesla (NASDAQ:TSLA) is in a top spot, Square (NYSE:SQ), Roku, Xilinx (NASDAQ:XLNX) and Twitter round out the top five positions. It charges 76 bps in fees.
OShares Global Internet Giants ETF OGIG — Down 4.4%
The fund looks to give investors a means of tracking stocks exhibiting quality and growth characteristics in the Internet sector. Amazon, Alibaba, Alphabet, Facebook, Microsoft (NASDAQ:MSFT) and Tencent are among the top holdings of the fund (read: Tech ETFs & Stocks Outperforming in 2020).
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