5 ETF Ideas For A Winning Portfolio In The Second Half

The COVID-19 pandemic has been acting as a dampener in the stock market this year. Wall Street made an impressive comeback from the worst first quarter since the 2008 financial crisis, wrapping up its best quarterly performance in decades. The combination of unprecedented levels of fiscal and monetary stimulus, a surging technology sector, hopes of a coronavirus vaccine, and easing of lockdown measures led to the rally.

Additionally, the latest bouts of data, which indicate that the U.S. economy has been recovering faster than expected from the pandemic, also drove stocks higher.

However, the second wave of coronavirus infections has been weighing on investors’ sentiment. This is especially true as the United States has recorded nearly 156,000 new coronavirus cases over the July Fourth Weekend, per the latest report. New cases are up 42% in Florida over the past week, 32% in Arizona, 40% in Montana, 37% in the Virgin Islands, 33% in Idaho, 30% in South Carolina, 29% in Texas, and up 21% in California over the same period, according to the Washington Post. The rolling seven-day average of new cases was 48,361 Saturday, up from 11,740 one week ago.

Given this, we have highlighted some investing ideas that could prove to be extremely beneficial for investors in the second half of 2020 in the current market environment:

Make Trending Sector Your Friend

The technology sector is booming and at the heart of the current market rally. It has shown strong resilience in one of the worst economic environments that the United States has ever seen. This is because the pandemic has driven the e-commerce boom and changed the consumer landscape to a purely digital one, thereby driving demand for cloud computing, gaming, esports, and streaming services.

While most of the ETFs are beneficiaries of this trend, WisdomTree Cloud Computing Fund WCLDWedbush ETFMG Video Game Tech ETF (GAMR - Free Report)O’Shares Global Internet Giants ETF OGIG and First Trust Dow Jones Internet Index Fund (FDN - Free Reportcould be solid picks. These funds have been soaring this year. WCLD and FDN have a Zacks ETF Rank #2 (Buy).

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