Trade the Remote Economy index

Take a position on remote economy stocks with City Index for exposure to the 20 biggest online and digital players.

  • Includes Amazon, Netflix and Zoom
  • Margins as low as 10%
  • Go long or short
  • Spreads from 6 pts

What is the ‘Remote Economy’ index?

The Remote Economy Index is a stock index designed to measure the market performance of the top 20 North American publicly-listed companies that provide services in specific online and digital spaces.

To be included, the US-headquartered companies must derive at least 80% of their revenue from videoconferencing, online food delivery, online gaming, telemedicine, entertainment streaming and E-retailing.

The Remote Economy is a sector that performed extraordinarily well during the initial stages of lockdown in spring and summer 2020. However, it has run a choppier course since, and commentators are divided about the long-term price direction in these companies.

Long-term issues to bear in mind are the potential for rising interest rates to threaten the share price of some of the high-growth companies in this index. On the other hand, if working from home or hybrid working continues, some traders will undoubtedly seek opportunities to go long on this index.

Quick facts on the Remote Economy Index

The Remote Economy Index is weighted by free-float market capitalisation and rebalanced quarterly. At any one time, the single biggest constituent might command more than 10% of the index with the smallest a fraction of 1%.

Number of constituents:
1
Market hours:
1.3 –06.00 AEST
Spread: Fixed
20 pts

Have Remote Economy stocks had their day in the sun?

It may be a long time before Remote Economy stocks can again enjoy quite the lift-off they did in Q2 and Q3 of 2020. Traders looking to short this index will be seeking robust signals of pre-pandemic conditions re-establishing themselves.

On the other hand, there are signals that offices will never be as heavily populated as they were before the pandemic, and that most people will remain indebted to the in-home online services they have come to take for granted.

Traders certainly need to be across industry developments, and our market analysts can bring you the kind of information you need to make educated trading decisions.

How to trade the Remote Economy index

Think of the big-name brands that make their money from people spending via home computers and smart TVs. Amazon, Netflix, eBay and Zoom are all constituents of the Remote Economy index. The more of our monthly outgoings we spend on these companies, the better the index performs.

You can elect to go long or short (buy or sell) the Remote Economy index without ever owning the stocks in the relevant economies.

Traders may judge the market on technical indicators, fundamental analysis, or by reacting to news. To help you further, our charts showing price action come with technical indicators and drawing tools as standard.