The Exchange Traded Fund marketplace has been on a roll in 2020 on investors seeking diversified exposure to a volatile stock market, hit hard by the COVID-19 pandemic. Things are not expected to cool any time soon, with companies posting impressive results amid the pandemic shocks. Oracle Corporation (NYSE: ORCL) reaching an agreement that will see it become a technology partner for viral sharing app TikTok is one of the developments poised to shake up the ETF landscape.
Just weeks after reporting better than expected first-quarter results, the cloud giant has inked a landmark deal poised to expand its footprint into the social networking space. TikTok would be a great addition, having experienced exponential growth since its inception in the U.S market in 2018.
The app boasts of more than 100 million users in the U.S alone, mostly millennials that Oracle can look to monetize. It has also emerged as an effective marketing tool for small businesses hard hit by the pandemic.
ETFs with the highest allocation on Oracle look set to be big movers as Oracle moves to complete a deal for TikTok. iShares Expanded Tech-Software Sector ETF IGV) is one of the ETF poised to benefit on the TikTok deal. The ETF holds 100 securities, of which Oracle occupies the fourth spot with 7.7% of total assets. Invesco BuyBack Achievers ETF PKW) is another ETF, which holds 243 stocks with Oracle occupying the fourth spot with 4.88% in allocation.
Other ETFs worth paying close watch to as Oracle awaits President Donald Trump Administration verdict on the TikTok deal include First Trust Cloud Computing ETF SKYY) and First Trust NASDAQ Technology Dividend Index Fund TDIV).
VEGN ETF Outperformance
Investors looking to diversify their holdings beyond Oracle linked ETFs, then focusing on an ETF that invests in companies with zero animal exploitation and zero fossil fuel exposure, would cut it. U.S Vegan Climate ETF is the ETF for environmentally focused investors.
VEGN ETF comes with a portfolio of stocks with lower greenhouse gas emissions, waste generation, and freshwater utilization. The ETF relies on a number of metrics to construct its portfolio, key among them being greenhouse gases, water utilization, water generation, and social good. The ETF does not invest in companies with unethical practices towards animal people or the planet.
One year since its inception, the ETF has outperformed, having returned 27.69% on market price compared to 19.75% for the S&P 500. The ETF has outperformed the S&P 500 Index by 2.12% on the basis point.
Pacific Global ETF Liquidation
Separately, Pacific Global ETF, an operator of a number of ETFs, intends to liquidate two of it ETFs. The firms’ board of Trustees has approved the liquidation of Pacific Global US Equity Income ETF and Pacific Global International Equity Income ETF.
The ETF will cease to exist on the final day of trading on October 23, 2020, with the final creation orders accepted before October 23, 2020. Final distribution to investors will occur on October 23, 2020.