Disruptive Tech Will Fuel Online Learning Growth

https://etfdb.com/thematic-investing-channel/disruptive-tech-will-fuel-online-learning-growth/

Even before the pandemic, online learning was already a growing industry, but disruptive technology could further enhance the space, translating to gains for the Global X Education ETF (EDUT).

Disruptive tech like artificial intelligence (AI) and virtual reality (VR) are already enhancing various business operations. That same tech could be used to enhance online learning and thus facilitate better delivery of education.

“E-Learning Market size surpassed USD 250 billion in 2020 and is anticipated to grow at an exponential CAGR of over 21% between 2021 and 2027,” Global Market Insights notes. “The advent of several new technologies, such as AI, VR, and cloud based LMS, will drive the market growth. The emergence of an AI-enabled e-learning solution will help in the development of smart content, digitized study guides, and real-time questioning.”

“E-learning platforms have been witnessing an exponential uptake by the education and corporate sectors over the past three to five years,” Global Market Insights adds, noting that $1.6 billion was invested in educational technology in 2019.

“Schools and businesses are adopting online learning tools for improving the engagement and learning experience of students & employees,” Global Market Insights says further.

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Global X is always pushing the envelope with their thematic ETFs, and EDUT is another step in that familiar direction. EDUT provides a unique take on equities with high exposure to the education theme by emphasizing exposure to companies that facilitate digital learning and educational content publishing for education at all levels globally.

EDUT undertakes extensive research to identify education companies based on industry reports, investment research, and consumer data. Screening methodologies for inclusion in the fund include a revenue-based company analysis to identify pure-play companies with greater than 50% of their revenues derived from delivering education.

Social distancing measures borne out of the ongoing pandemic caused many activities from work, entertainment, and education to shift to a home environment. As such, EDUT provides exposure to those engaged in online learning and publishing educational content, as well as those involved in early childhood education, higher education, and professional education.

Overall, EDUT provides:

  • Long-term growth potential: Educational access 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 education theme extends beyond the scope of any single country or public entity. EDUT invests accordingly, with global exposure across multiple sectors and industries.
  • Conscious approach: EDUT incorporates the ESG proxy voting guidelines from Glass Lewis.

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