Investment opportunities in a post-Covid world

While the coronavirus is still very present in our daily lives, and the pandemic rages on around the world, there might be a light at the end of the tunnel. As vaccines begin to roll out around the world, it is likely that we will see a continued economic recovery, and the sectors that were hit hardest by the virus will begin to show a recovery.

We want to share some ideas around sectors that were the worst hit by Covid-19. Below you will find a review of some of the most interesting sectors in this context. Each idea relates to an eToro CopyPortfolio: A packaged, managed, smart approach to investment, with no management fees.

The travel industry

Most travel stocks were destroyed in 2020. Even today, despite promising test results for three Covid-19 vaccines, many companies are still struggling. On the other hand, several sectors have rebounded over 100% from March lows, including airlines and hotels, but are still below their 2020 peaks.

In the near future vaccine use should become more widespread, and the danger of infection is expected to decrease. People will be eager to return to live sporting events and concerts, dine in restaurants and travel. In fact, traveling may benefit from pent-up demand. As opposed to leisure, business travel is often essential and may also return to normal levels.

For a ready-made investment option in the travel industry, take a look at eToro’s TravelKit portfolio.

Your capital is at risk. 

CopyPortfolios is a portfolio management product, provided by eToro Europe Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission. 

Banking and Finance

For long-term investors, the current share price weakness across the global banking sector could represent a buying opportunity. Banks serve an important societal need that will never go away.

Currently, many of the top banks, including JPMorgan, U.S. Bank, and Bank of America, trade 20% below pre-coronavirus levels or lower. Moreover, the extended housing boom we may see as millennials move en masse into the home buying market over the next decade could drive bank assets and profits higher for many years to come.

To present investors with a thematic investment opportunity in leading financial institutions, eToro has created TheBigBanks portfolio, which presents exposure to the world’s top 25 banks, weighted by market capitalisation.

Explore TheBigBanks

Your capital is at risk. 

CopyPortfolios is a portfolio management product, provided by eToro Europe Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission. 

Oil and Energy

While numerous countries around the world are promoting the use of renewable energy, the world still runs on oil. As demand dwindled in 2020, oil producers were focused on reducing costs to survive at lower oil prices. Some oil giants merged to gain synergy, such as Chevron, which acquired Noble Energy for $13 billion, Devon Energy, which merged with WPX Energy, and ConocoPhillips’ acquisition of Concho Resources.

While consumption is on track to improve this year, the pandemic could continue to affect how fast it rebounds. If vaccines roll out quickly, people will be able to return to their offices and travel much more this year, which will drive demand for gasoline and jet fuel.

To give investors exposure to the oil and energy markets, eToro has created the OilWorldWide portfolio. This portfolio breaks down the oil industry to its value chain, resulting in a diversified allocation of various elements within the sector.

Explore OilWorldWide

Your capital is at risk. 

CopyPortfolios is a portfolio management product, provided by eToro Europe Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission. 

The Covid-19 crisis also presents an opportunity for investors. These “outside the box” solutions may be a good option for those wishing to diversify their portfolios and adjust it to various scenarios.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. 

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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. 

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. 

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission. 

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. 

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Past performance is not an indication of future results.
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