EEven before the pandemic, e-learning was already a growing industry, but disruptive technology could further improve the space, translating into gains for the Global X Education ETF (EDUT).
Disruptive technologies such as artificial intelligence (AI) and virtual reality (VR) are already improving various business operations. This same technology could be used to improve online learning and thus facilitate better delivery of education.
“The size of the e-learning market topped USD 250 billion in 2020 and is expected to grow at an exponential CAGR of over 21% between 2021 and 2027” Notes on Global Market Outlook. “The advent of several new technologies, such as AI, VR and cloud-based LMS, will drive market growth. The emergence of an AI-based e-learning solution will contribute to the development of intelligent content, digital study guides and real-time questioning. “
“E-learning platforms have seen exponential adoption by the education and business sectors over the past three to five years,” adds Global Market Insights, noting that $ 1.6 billion has been invested in educational technology in 2019.
“Schools and businesses are adopting e-learning tools to improve student and employee engagement and learning experience,” adds Global Market Insights.
Push the creative envelope with education
Global X always pushes the boundaries with its thematic ETFs, and EDUT is another step in that familiar direction. EDUT offers a unique approach to stocks with a strong exposure to the theme of education with an emphasis on exposure to companies that facilitate digital learning and the publication of educational content for education at all levels in the world.
EDUT undertakes extensive research to identify education companies based on industry reports, investment research, and consumer data. Methodologies for selection for inclusion in the fund include a revenue-based business analysis to identify pure-play companies where more than 50% of their revenue comes from providing education.
Social distancing measures stemming from the ongoing pandemic have caused many activities to move from work, entertainment and education to a home environment. As such, EDUT provides exposure to those involved in online learning and publishing educational content, as well as those involved in early childhood education, higher education, and teaching. professional.
Overall, EDUT provides:
- Long-term growth potential: Access to education is associated with many positive social and economic outcomes. Global X expects the convergence of technology and education to democratize access to learning around the world.
- Unconstrained approach: The subject of education goes beyond the framework of a single country or a public entity. EDUT invests accordingly, with global exposure across multiple sectors and industries.
- Mindful Approach: EDUT incorporates Glass Lewis’ ESG proxy voting guidelines.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.