CFD and FX provider CMC Markets has further extended its popular range of thematic share baskets to offer economic exposure to those stocks which have seen their popularity soar in recent months.
The COVID-19 global health pandemic has taken a horrific toll on lives across the world and served a severe blow to economic growth too, but a select number of companies have found themselves well positioned to deliver solutions as offices, gyms, shops and schools have all been closed.
What’s more, the enforced changes in lifestyle has seen many questioning why society has failed to innovate as fast as it could have done in recent years, given the raft of new technology which is now at our disposal.
To this extent, CMC Markets, which already has 17 curated share baskets on offer ranging from renewable energy and robotics to 5G, has added Remote Lifestyle and Collaborative Technologies portfolios to the array.
Simon Campbell, Group Head of Trading at CMC Markets, commented: “There has been much speculation around how different industries will be impacted by the Coronavirus pandemic and certainly it will take time to see, however there are some clear obvious innovators. Traders are often the first to identify new opportunities in emerging industries and CMC have seen a large uplift in the volumes for Peloton, Citrix and Zoom Video in recent weeks. As an organisation we pride ourselves on our ability to respond to client demand and as such are excited to be able to allow our clients access to these trending stocks in one trade.”
CMC Markets’ Collaborative Technologies basket includes established names such as Apple, Microsoft and Adobe, alongside emerging players such as DocuSign, Zoom, Citrix and Slack.
A tiered weighting approach is used to reflect a company’s involvement in the specific theme, with ratios formulated by IHS Markit, a leading source of independent valuation services for Exchange traded products and custom baskets.
Similarly, the Remote Lifestyle basket includes companies which although well known, now play an integral role in meeting the day-to-day needs of many individuals.
From Amazon, Facebook and Twitter to UPS, Domino’s Pizza, GrubHub and Peloton, each business in the basket has helped people maintain some semblance of normality in a world that has been turned on its head.
CMC Markets regularly consults with a number of respected industry experts to help better understand what clients will want to trade next.
Research Analyst and Portfolio Manager Joe Kunkle is one such contributor, who noted: “Recent events have accelerated the speed of major thematic shifts such as work-from-home, and discussions from management across the software space are validating the surge in demand for these solutions as every company scrambles to ensure business as usual in the new environment. This includes having an online presence, a collaborative work environment, network security, modernized digital infrastructure and more.”
Trading baskets of shares helps clients generate diversified portfolios, whilst the financing or holding costs charged by CMC Markets on these products are 50% lower than is payable when trading individual equities.
As a CFD or spread bet, these baskets can be leveraged with margins set at 20%, whilst clients also have the ability to take long or short positions, enabling them to trade the trend accordingly.
For more information on basket constituents and the index weighting methodology you can visit the following link.
