Gain Exposure to Popular Sectors like EV, Microchip Stocks, and more on Phillip MT5

Gain exposure to popular sectors – Electric Vehicles (EV), Microchip Stocks, Consumer Staples, Financials – from as small as one share CFD on Phillip MT5 at zero commission with no minimum and platform fees.

Read on to learn more about these sectors!

Electric Vehicles

Ford Motor Co | General Electric Co

Electric vehicles are undergoing the beginnings of a renaissance – where the technological know-how behind constructing better batteries, charging stations, and electric car designs, have been meeting increasing adoption amongst regulators, traditional manufacturers, and consumers alike.

Perhaps hoping to mirror Tesla’s runaway success, more and more automakers have steadily formed their own alliances and battle plans to begin electric vehicle production, scouring the globe for partners with which to refine their own battery solutions and electric vehicles while also committing literal billions in investment to accelerate their development.

Interestingly, investors giddy with the success of early electric vehicle stocks have accordingly shown incredible receptiveness towards just about any company willing to pivot to electric vehicle production and have spent the last couple of years ploughing billions into traditional automakers – perhaps in search of the next Tesla.

There are a number of different ways to invest in shares. The most well-known and direct method is share trading – colloquially known as stock trading – by investing in the shares of companies that are listed on a stock exchange.

Microchip Stocks

Advanced Micro Devices | Applied Materials | Analog Devices | Intel Corp | Micron Technology | Nvidia Corp | Qualcomm | Cirrus Logic | VanEck Vectors Semiconductor ETF

Analyses of the microchip industries are perhaps some of the harshest around. Besides supply chain and other business-related concerns (such as pricing), microchip-related stocks often compete on the technological superiority of their products – with AMD and Nvidia perhaps being the most famous example of this rivalry.

For instance, while decades-long industry stalwart Intel is still struggling to perfect production of 10nm (nanometer) processors, companies such as Nvidia, IBM, and even Apple have been competing with processors at 7nm and less (smaller is better).

Although many of these stocks have taken a hit in recent months thanks to massive chip shortages worldwide, it is becoming increasingly clear that given how many applications in the post-pandemic world require chips – from the simplest of televisions and smartphones to the most advanced self-driving cars, even the fiercest of rivalries may see most chipmakers gain given the sheer expected growth of the microchip pie.

Consumer Staples

Best Buy Co | Coca-Cola Co| Home Depot | McDonalds | Pepsi Co | Walmart | International Paper

Consumer staples are often said to deserve a regular, unquestioned spot in an investment portfolio, largely thanks to their un-cyclical nature. Precisely because they tend to provide essential goods and services such as food and household items (as opposed to discretionary purchases such as luxury items and expensive food), consumer staple stocks tend to provide relative calm during economic downturns.

Furthermore, with the S&P500 (made up of large-caps) paying an average dividend yield of around 1.3% only, many find that the added benefit of holding consumer staples comes from their typically steady and regular dividend-paying nature.

True to form, many of them have maintained their dividend payouts even over the pandemic, with Dividend Kings such as Coca-Cola Co. continuing to raise their dividend – for the 59^th consecutive year.

Financials

Bank of America | Citigroup | Goldman Sachs | JP Morgan Chase | American International Group | Financial Slt Sec SPDR Fnd

Bank stocks tend to be a classic cyclical play and have predictably outperformed stock market benchmarks over the past year.

Even while COVID-19 ravaged many industries, the major US banks such as JP Morgan weathered the pandemic relatively well. Accordingly, many of them recently received a profit boost from the release of reserves that were built up as a contingency for potential loan losses over the economic downturn.

While low interest rates over the past couple of years have hurt certain segments of their businesses, services such as investment banking where mergers & acquisitions (M&As), IPOs, and corporate debt issuance have been booming – with many recording record revenue in some areas.

Looking ahead, with employment figures and inflation running hot, many will be watching for the Federal Reserve’s interest rate hikes to be brought forward, further raising sentiment in bank stocks.