"At Home" ETFs investors yearning for Omicron-fueled comeback

At Home ETFs are relatively new Thematic ETFs born in the middle of the global COVID-19 pandemic. With lockdown put in place, the theme witnessed great success in 2020 after the standardization of remote work and education. The 5 ETFs tracking the theme provide exposure to companies set to benefit from the work/study at home trend, such as work management and communication tools, streaming services, virtual education and fitness and gaming platforms among others. Since the first ETF popped in June 2020, they've attracted more than $166 million in net inflows, led by the Direxion Work From Home ETF (WFH, $137.6 million) and Emles @Home ETF (LIV, $10.7 million).  

In terms of performance, the ETFs ended the plagued year in green territory, led by WFH with +35% gains. Global X Education ETF (EDUT) came in second with +20% and iShares Virtual Work and Life Multisector ETF (IWFH) third with 19%. 

Things have changed in 2021 with the vaccine rollouts. Employees and students gradually went back to the offices and schools and they were less dependent on virtual tools. The now 6 ETFs have bled $56 million year-to-date as investors backed out. 4 ETFs took the plunge, including Global X Education ETF (-50.72%), iShares Virtual Work and Life Multisector ETF (-25.93%), ProShares On-Demand ETF (-15.63%) and Rize Education Tech and Digital Learning UCITS ETF (-51.02%). 

With COVID-19 cases picking up steam, the "At Home" ETFs may be heading for a comeback. European investors can jump aboard with the Rize Education Tech and Digital Learning UCITS ETF (LERN). The fund tracks the Foxberry HolonIQ Education Tech & Digital Learning Index. It is Europe's first education technology ETF and provides investors with exposure to “EdTech” companies that facilitate education in an increasingly digitalized environment, including businesses that produce adaptive learning, video content, gamification and immersion technology. 

As of December 20th, 2021, LERN's top holdings include New Oriental Education & Techn (6.98%), Bright Horizons Family Sols. (4.9%), Duolingo (4.88%), Gaotu Techedy (4.81%) and Tal Education Group (4.81%). The fund has a total expense ratio of 0.45% and trades on multiples European Exchanges, including the Borsa Italiana (LERN IM in EUR), London Stock Exchange (LERN LN in USD or LRNG LN in GBP), Deutsche Börse Xetra (LERN GY in EUR), Euronext Amsterdam (LERN NA in EUR) and SIX Swiss Exchange (LERN SE in CHF). 

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