ETF Launches: WFH

Direxion debuts the first ETF to target companies benefiting from the work-from-home culture.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

 


FEATURED ETF
Direxion Work From Home ETF (WFH)

The Direxion Work From Home ETF (WFH) made its debut in June. The fund seeks to capitalize on the paradigm shifts in the workplace that have occurred since the start of the COVID-19 pandemic.

WFH comes with an expense ratio of 0.45% and lists on the NYSE Arca.

“The ETF is designed to offer exposure to firms that are really at the intersection of this worldwide transformation to the greater acceptance and requirement of remote work,” said David Mazza, Direxion’s head of product.

Mazza notes that in 2017, about 5% of Americans worked from home, but the pandemic has accelerated that trend. 

WFH’s underlying index includes 40 companies selected from four categories of products and services that enable working from home: remote communications, cybersecurity, online project and document management, and cloud computing technologies.

Companies are evaluated using the index provider’s proprietary natural language processing algorithm, ARTIS, such that the top 10 companies for each of the four categories based on keyword “hits” are selected for inclusion in the index, the prospectus says. Companies in the index are equally weighted.

After its launch, the fund’s top holdings included Twilio (4.72%), CrowdStrike (4.5%) and Zoom (4.07%).

Source: ETF.com. Data and information as of 6/30/2020.
ETF Filings sidebar covers launches and closures for the months of May and June 2020.

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.