Some gig financial system companies are beneath immense political stress, nevertheless that hasn’t stopped the lone exchange-traded fund dedicated to gig financial system equities from posting spectacular outcomes.What Occurred: The SoFi Gig Monetary system ETF (NASDAQ: GIGE), which debuted in May 2019, has greater than doubled off its March lows. To be precise, GIGE is greater by 102.58% since March 16.“GIGE is in the top 30 of best-performing equity ETFs in the U.S. this year (out of 1,482, not including leveraged funds),” in accordance with an announcement issued by SoFi.Why It’s Wished: When most patrons think about gig financial system stocks, they provide thought to ride-hailing giants Lyft (NASDAQ:LFYT) and Uber (NYSE: UBER). Fortunately, GIGE merely isn’t weighted as a reflection of customers’ or patrons’ view on gig work.“Fortunately” because of Lyft and Uber are beneath duress of their home state of California. Assembly Bill 5 (AB 5), a bill signed into regulation closing September, classifies rideshare drivers as full-time workers of companies like Lyft and Uber. Predictably, the companies don’t want it because of they contend the classification of drivers as full-time workers harms their enterprise model.The companies’ future all by means of the Golden State is tenuous, nevertheless that’s unlikely to derail GIGE because of not one amongst many fund’s 61 holdings exceed weights of three.45% and neither Lyft nor Uber is among the many many many many ETF’s excessive 10 parts.That may very effectively be a advantage of GIGE being actively managed. One completely completely different is the fund can tilt in path of most enchancment areas which is vulnerable to be secondary parts of the gig ecosystem. For example, the fund has a modest fintech really really actually really feel with PayPal (NASDAQ: PYPL) and Sq. (NYSE: SQ) amongst its excessive 5 holdings.What’s Subsequent: Earlier pure gig work, GIGE is levered to completely completely completely different compelling themes, along with fintech, e-commerce and work from home. That may set the stage for further enchancment for the thematic fund it doesn’t matter what turns into of Lyft and Uber in California.“In in the present day’s world, it is not simply work-from-home, it is also work-from-anywhere, and the know-how corporations behind this revolutionary shift are a number of the few vivid spots on this economic system,” talked about SoFi CEO Anthony Noto. “GIGE has been in a position to seize these new traits and supply buyers with diversified publicity to this thrilling theme.”Communication suppliers is GIGE’s largest sector publicity at 60.6% whereas shopper discretionary and know-how stocks combine for nearly a third of the ETF’s roster.Disclosure: The creator owns shares of Sq..© 2020 Fintech Zoom.com. Fintech Zoom doesn’t current funding suggestion. All rights reserved.