Investors turn to thematic ETFs
Exchange traded fund (ETF) investors have turned their attention to battery technology, robotics and automation over the first six months of 2021, according to ETF Securities.
The firm’s annual fund flow data found this was a reversal of last year where investors directed funds towards safe haven assets such as gold and silver.
ETF Securities head of distribution, Kanish Chugh, said: “Taking inflow figures from the beginning of the year to the end of June, flows into ETFS Battery Tech and Lithium ETF accounted for more than 36% of total flows over the period.
“The significant support from investors especially new investors that have entered the market over the past 18 months into our ‘future present’ range highlights how comfortable they are to incorporate and even build their portfolios around thematic exposures.
“Many investors understand now how to use thematic ETFs to capture the growth of long-term megatrends such as battery technology and robotics, automation and artificial intelligence.
“There was still strong support for gold and silver, with flows into ETFS Physical Gold accounting for 28% of total flows so far this year and ETFS Physical Silver receiving more inflow than last year.”
Recommended for you
Evidentia Group has announced the appointment of a chief risk and operating officer, rounding out its executive leadership team after a slew of hires last month.
Family office Lederer Group has progressed its takeover bid for the Elanor Commercial Property Fund, lodging a bidder’s statement with ASIC as it says the fund has been “unable to agree” on negotiation terms.
Magellan Financial Group is keen to enact further strategic expansions with income from strategic partnerships tripling to $31.1 million from the addition of Vinva during FY25.
Outflows have doubled in the property and infrastructure space to $1.3 billion with advisers instead favouring private markets as Morningstar data finds active property funds are struggling to outperform.
