Do we have an index or theme fund for edtechs?

[matjung]

Recently I spend some money on a edtech.
While it is doing okay, it is not yet profitable.
As I have no glue which edtech will dominate the next 3 to 5 years, I would like to diversify the risk and chances within the sector.
In Dr Google I could not find any edtech index or theme fund yet.
Are you aware of anything in that field?

 

[target2019]

I don't know Ed Tech or Dr Google. Maybe you could explain what you mean?

 

[matjung]

Defintion for edtech: https://www.investopedia.com/terms/e/edtech.asp
Dr Google = Google

 

[CincyDave]

EDUT is closest I can find. Know nothing about it though.

 

[target2019]

Defintion for edtech: https://www.investopedia.com/terms/e/edtech.asp
Dr Google = Google

Instead of hunting, if anyone is interested, check this wikipedia article: https://en.wikipedia.org/wiki/Educational_technology

When I skim that article, I get lost in the great chaos of education I've witnessed over a very long period. I suppose the investment thought is that some company will invent a killer suite that will take over school budgets for tech. I don't see anything significant happening, though, for the following reasons. Apple and Microsoft share the market. The office suite a school uses in the classroom tells you what hardware and software the district IT will support.

There are other players, like Adobe, Autodesk, and smaller companies. To capture all of the establashed players, and the innovative companies they will acquire in the future, I'd invest in QQQ (https://www.invesco.com/qqq-etf/en/about.html).

 

[matjung]

The smaller companies are Coursera, 2U, Udemy, Skillsoft, LOPE, Stride, many more

 

[matjung]

EDUT is closest I can find. Know nothing about it though.

Thanks a million, this is exactly what I was looking for.

 

[target2019]

The smaller companies are Coursera, 2U, Udemy, Skillsoft, LOPE, Stride, many more

Only one is seriously up recently.
https://simplywall.st/stocks/us/con...ser&utm_campaign=intro&utm_source=yahoo#about

It's smaller, and does not make the EDUT portfolio.

 

[matjung]

Well, 2U is up 50%, from 5 to 7. Udemy and Coursera stopped going down and started going up. I think the sector under performed the last 18 months.

I will monitor quarter by quarter how EDUT benchmarks with S&P500 and Nasday100.
While there is little enthusiasm to support Facebook, Twitter or LinkedIn with premium subscriptions. If your next employer offers you more money because of a Certificate in Data Science, you are willing to spend a few bucks on edtechs, won't you.

 

[target2019]

Well, 2U is up 50%, from 5 to 7. Udemy and Coursera stopped going down and started going up. I think the sector under performed the last 18 months.

I will monitor quarter by quarter how EDUT benchmarks with S&P500 and Nasday100.
While there is little enthusiasm to support Facebook, Twitter or LinkedIn with premium subscriptions. If your next employer offers you more money because of a Certificate in Data Science, you are willing to spend a few bucks on edtechs, won't you.

To be honest, I would just invest as I have for the past 20 years - broad index funds in the desired allocation to provide average market returns. Sector plays are funny things. I do hope things work for you.

Note that TWOU is still down 47% from inception. Time to be careful.

 

[matjung]

%jumps after quarterly numbers
LRN: 30%
TWOU: 26%


COUR will report next week!
Maybe it jumps from 16 to 20 Dollars


For the moment I am not impressed by EDUT.
Based on January, high correlation with Nasdaq.
The three edtechs outperformend Nasdaq, for the moment.

 

[Koolau]

Public education is in a state of flux. It's a chance to make a lot of money or lose one's shirt on anything related I would think (but YMMV.)

 

[matjung]

I still did not see a fund that suited me.
At TWOU I took some partial profits.
Reinvested into SKIL.
Known Risks:
In 2020 SKIL made experience with Chapter 11.
Company is still in the red.
A private equity company re-financed SKIL.
SKIL is now a composition of a few EdTechs.


TWOU
Based on numbers for Q4.
It stopped burning money, wants to make a profit in 2024.
For 2023, the plan is cash flow positive.


I am now having positions in TWOU and SKIL.
If TWOU drops below 9, I repurchase some stocks.


The market capitalization of Coursera is already 2B, Udemy 1.8B, Stride also 1.8B, Chegg 2.6B
Corona is over, and people still go for web based training.



I will find out, if the industry and the small/mid caps are Tenbaggers or not.