The gains of rival funds created to track the shift to working from home have diverged, as investors bet on changes to stay longer, according to a report by FT on Wednesday.
Exchange-traded fund specialist Direxion started a “work from home” product amid the pandemic in late June 2020. The asset manager BlackRock after three months later with a “virtual work and life” ETF.
The two ETF funds appear almost similar, trading under the ticker symbol WFH and IWFH, respectively.
But their progression has diverged since the economies started reopening this year. WFH had risen 58% since its launch, with an 18% gain so far in 2021.
Meanwhile, BlackRock’s IWFH dropped 10% this year and is only 4% since its launch.
The variation signals their holdings: WFH’s $115m portfolio is largely into stocks of businesses that promote working from home, such as cloud computing and online project management. BLK down -0.08%