ETFs To Invest In As Coronavirus Fears Accelerate

The global stock markets took a bloodbath on Feb 24 trading session as coronavirus, which originated in China, spread rapidly outside the country with confirmed cases in South Korea, Italy and Iran over the last weekend. According to the latest figures from the World Health Organization, there are now 79,407 cases of COVID-19 — the official name given to coronavirus —  in 32 countries and 2,622 related deaths.  

Notably, global stocks had the worst day in two years, shedding about $1.73 trillion alone in a day while the U.S. stocks dropped the most since February 2018. The S&P 500 lost more than $900 billion in value, according to S&P Dow Jones.

Per the latest report, the coronavirus cases in South Korea surged past 800 while it topped 200 in Italy, including five deaths. Iran said there had been 12 deaths and 61 confirmed coronavirus cases in the country. China reported 409 new cases, raising the mainland’s total to 77,150. The 150 new deaths from the illness raised China’s total to 2,592.

The spike in the number of cases has raised fresh worries that the outbreak could threaten global growth. In particular, a growing number of companies have warned that the deadly virus will prevent them from meeting sales or profit targets for the first three months of the year. Reduced demand for goods and services and factory closures in China are also expected to hurt global growth and weigh on trade at a time when Japan and Germany are already teetering on the brink of recession.

Per the International Monetary Fund, the virus outbreak could reduce global economic growth by 0.1% this year. Goldman now projects the U.S. economy to grow just 1.2% in the first quarter, down from 2.1% in the fourth quarter and 2.3% in full-year 2019.

Amid such scenario, we have highlighted some ETFs that could benefit investors’ portfolio in the near term. These products could also provide some shelter from the crisis and would be in focus in the weeks ahead.

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