Thematic ETFs see 70% FUM growth
Assets in thematic exchange traded funds (ETFs) could reach $10 billion by the end of 2021, according to VanEck.
Over the six months to 30 April, 2021, funds under management in thematic ETFs grew by 70% to $4.3 billion. In contrast, the Australian Securities Exchange (ASX) listed market capitalisation ETFs grew by 33.4% to $66.1 billion.
VanEck chief executive, Arian Neiron, said the appeal of thematic ETFs was they were accessible, liquid and low cost and allowed investors to position their portfolio to actively take advantage of certain trends.
These included robotics, video games, clean energy and global healthcare.
“This is the next chapter for the ETF market, the growth of thematic ETFs which is underpinned by sustainable long-term trends in which momentum is building. These offer investment strategies that capitalise on enduring economic trends or themes, with technology, clean energy and healthcare favoured among investors,” Neiron said.
“VanEck’s Video Gaming and eSports ETF (ASX: ESPO), for example, has been our quickest-growing ETF since we first launched our funds in Australia in 2014. ESPO is Australia’s first and only dedicated video gaming and esports ETF and has drawn FUM of around $100 million in just seven months.
“Another sector where we are seeing significant investment opportunities is global healthcare. Even before COVID-19, health spending was rising strongly across nations given ageing demographics and emerging nations’ healthcare systems catching up to developed nations. Investors are likely to reap the benefits of the healthcare expansion and rising investment.”
AUTHOR
Laura Dew
Recommended for you
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
