Global X ETFs CIO on trends emerging in markets amid COVID-19 pandemic

Jon Maier, Chief Investment Officer at Global X ETFs, joins The Final Round to highlight themes prevalent in markets and areas that investors should consider amid COVID-19 for growth.

Video Transcript

MYLES UDLAND: Well, for a little bit more on some of the hottest trends going on in the markets and how maybe you can play them with some ETFs out there in the market, we're joined by Jon Maier. He's the CIO over at Global X ETFs.

And so Jon, let's just start with I guess maybe the areas that you guys have seen the most investor interest in over this period and if it kind of fits-- does that fit with the themes that we see on an individual name basis that have been the real leaders, whether it's your Netflixes, your Zooms, e-commerce plays, things like that?

JON MAIER: Thanks, Myles. Thanks for having me on. You know, I think since we're all working at home, working virtually, and buying things, the themes that are most relevant include e-commerce, cloud computing, financial technology, Internet of Things-- things that you can you utilize while you're staying at home. The cloud business is so scalable and is so foundational to everything. It makes perfect sense to be involved with.

And at Global X, what we're trying to do is include some of these themes in portfolios. I build portfolios. I built them at my last job. I built them at Global X. And incorporating cloud computing, videogames, and e-sports, financial technology in a cohesive fashion it is a great way to play, especially what's going on right now.

MYLES UDLAND: And I guess from your side of the exchange, trying to build out the portfolio that offers kind of what an investor wants out of that sector maybe, have there been challenges given the speed with which we've seen certain stocks move, or the names that have risen to such prominence as a part of, you know, let's say the stay-at-home trade?

I mean, I feel like you couldn't have added enough Zoom to the portfolio. But then you don't just want to have an ETF that's 50% Zoom, right? So how's that challenge kind of been in this time?

JON MAIER: Sure. Stock picking is always something that's difficult. That's why I love ETFs. I've been in the ETF business for a long time. Whether you're picking a broad-based index or something more narrowly focused like cloud computing, you're buying a collection of securities. So you're not just looking for one security to double, triple, or quadruple, because you never can quite pick that name.

So if you have a collection within that theme, yes, one may go up a meaningful amount. And you catch that. And the other-- you wouldn't necessarily know which one it would be. So I think that's why an ETF does make a lot of sense.

DAN ROBERTS: Jon, Dan Roberts here. Myles joked about Zoom. You know, we don't know how lasting that bump will be post-pandemic. I mean, obviously there are companies saying, we're going to work from home forever now.

But I just thought I'd ask, you know, when we talk about the theme of these companies that have been a safe bet during the pandemic because they're stay-at-home plays, I mean, what's the danger of some of those names pulling back once things go back to normal? I mean, of course names like the FAANG names, they're going to keep going up. And that was the case before the pandemic.

But then there's things like Peloton. Well, that might just be a fad. And so some of these names are benefiting right now, but then they might actually see the opposite happen if there's a return to normalcy.

JON MAIER: Well, first of all, this period of stay-at-home, work-at-home, have our kids go to school at home, it seems to be a lasting longer than we had hoped and expected. So during that period of time, companies are actually able to build out their infrastructure and really codify their businesses. And the revenues likely will catch up with the valuations. We're seeing some of the high valuations on some of these names.

So I think the longer we're in this period and the longer we're getting used to doing what we're doing-- not that it's ideal-- there's going to be aspects that will stay with us going forward. There's going to be certain employees that are never going to have to travel anymore, because it's a lot cheaper and more cost-effective for them to stay in the office and communicate with others through different technologies like Zoom and Slack.

So I think, sure, some will last beyond the pandemic and others will not. And again, going back to an ETF, that's why you're buying more than one security within that ETF, because you don't necessarily know. But these themes-- whether it be cloud computing, whether it be videogames and e-sports-- they were all already occurring prior to the pandemic.

And the pandemic certainly accelerated certain themes. And certain things are going to stick with us going forward, without a doubt. And certain things, we're going to be so happy to go back to work and get back to a somewhat normal life, for sure.

MYLES UDLAND: All right. Jon Meyer-- Jon Maier, excuse me, CIO at Global X ETFs. Thanks so much for joining the program, Jon. We'll talk soon.

JON MAIER: Thanks for having me.