Thematic Gig Economy ETF shows signs of life

The SoFi Gig Economy ETF (GIGE) dusted itself off in the second half of March, gaining +30% since March 14. This resurrection is the first sign of hope for GIGE investors after witnessing four straight months of double-digit percentage losses.

GIGE is an actively managed thematic ETF that invests in companies engaged in a disruptive shift towards a “gig” economy—a free-market system comprised of freelancers and shared resources, such as ride-hailing apps, food delivery apps, and holiday rental apps.

GIGE ETF was a pandemic superstar

The fund was one of the pandemic era superstars as remote work became the norm amid nationwide lockdowns and mass layoffs. Between end of February 2020 and February 16th, 2021 (the day the share price reached an all-time high of $48.58) GIGE's share price generated a stellar +162% return for investors who caught the trend. As vaccines emerged and life began to normalize, the GIGE ETF lost its allure and saw its share price plummet by -53% (as of March 23rd, 2022) from its all-time high.

Breaking down GIGE ETF

As of year-end 2021, GIGE's top country exposure was the United States (50.7%), followed by China (20%), Israel (5.3%), Canada (4.7%), Sweden (3.5%), Singapore (3.5%) — among other. In terms of sector exposure, the communication sector had the lion's share (55.6%), followed by technology (26.7%) and consumer non-cyclical (9.6%). Its top 10 holdings, as of March 22nd, 2022, account for 30% of the portfolio and include Block Inc (4.01%), Shopify Inc. (3.51%), Airbnb Inc. (3.14%), MercadoLibre Inc. (3.03%), Roblox Corp. (2.99%).

GIGE has a total expense ratio of 0.59% and trades primarily on the NASDAQ.

Why GIGE ETF is gaining traction?

Apparently, Block Inc., Shopify Inc, Airbnb Inc., some of the largest holdings gained +48% +42%, and +20% respectively since March.14, lifting the GIGE ETF out of the deep hole it has settled in for months. High growth stocks tech stocks like Block and other GIGE underlying holdings have suffered repeated blows in the recent past as macroeconomic factors such as inflation and rising interest rates, worsened the financial outlook of the companies. Investors seem keen to hop back on these risky assets as prices start to look like a good bargain.

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