10 ETF Charts I Thought You’d Like This Week - (Week #10)
Carbon Credits, Active, Solar, Crypto, Gold, Index Masters and More!
Hot Start for Active
The active momentum continues to be strong in the U.S. in the first 10 weeks of this year, with almost a third of all ETF net flows going into active funds.
New Milestone for Global Crypto ETPs
With the successful launch and strong traction of Spot Bitcoin ETFs in the U.S., the global Crypto ETPs landscape has surpassed $70 billion in AUM.
Most Popular Sectors Year-to-Date
According to Trackinsight data, Tech and Healthcare sector ETFs are the most popular among investors globally year-to-date, drawing $22 and $6 billion respectively as of March 7th, 2024.
Investors Top Criteria for Thematic ETF Selection
According to the 2024 Trackinsight Global ETF Survey, investors prioritize several key factors when selecting Thematic ETFs. Among these, costs, index description, and the risk-return profile stand out as top criteria.
Checking in on Carbon Credits ETFs
Carbon credit ETFs provide investors with exposure to the market for carbon emission allowances.
Following a peak in their total assets under management in January 2022, these funds have experienced recurring outflows, totaling over $1 billion since March 2022, according to data by Trackinsight.
Additionally, EU Carbon Permits fell to 60€/t as of March 8, 2024, a decrease of over 40% from the all-time high of 105.73€/t reached in February 2023.
Demand for carbon credits has suffered due to the absence of standardized rules governing carbon markets. Recent reports and studies questioning the system's reliability have further eroded investor confidence.
Flows Melt Away From Gold ETPs
In February, Gold ETPs sustained their ninth consecutive month of outflows. Nonetheless, gold prices surged to record highs, signaling robust demand for the yellow metal, most likely from central banks.
Despite speculation about investors transitioning from gold ETFs to bitcoin ETFs, widespread selling of gold ETFs in exchange for bitcoin ETFs appears unlikely, particularly considering that the outflows started months before the launch of Spot Bitcoin ETFs in the U.S..
Pesky Cloud Cover over Solar ETFs
Solar ETFs are still struggling this year, being the worst-performing theme so far with a 15% plunge as of March 6, 2024. The theme has also seen outflows of $186 million this year, according to data by Trackinsight.
Solar companies are facing challenges due to rising interest rates and higher costs for materials because of inflation and supply chain issues. It's also becoming more expensive for people to finance home projects like installing solar panels. This has led to a drop in demand, putting pressure on solar companies.
Global X BOTZ Lands $500+ million in One Day
Over half a billion dollars flowed into the US-listed BOTZ ETF on March 7th, 2024, making it one of the top 20 recipients of ETF flows globally in the first four trading days of this week, according to data by Trackinsight.
The Global X Robotics & Artificial Intelligence ETF ($BOTZ) invests in companies poised to benefit from robotics and AI adoption, covering industrial automation, non-industrial robots, and autonomous vehicles. It aims to track the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index.
Top ETF Index Providers in Europe 2023
As of the end of 2023, indexed ETF assets in Europe have surpassed $1.7 trillion.
The three largest index providers in Europe, MSCI, S&P Dow Jones Indices, and Bloomberg account for almost 70% of the total indexed Europe-domiciled ETFs AUM.
Credit: Trackinsight
70% of all ESG ETFs are domiciled in Europe
Europe's enthusiasm for ESG is driving a robust demand for new products to meet the increasing adoption among investors. As of March 6th, 2024, there are 1,301 ESG ETFs domiciled in Europe, compared to 672 in 2020.
Meanwhile, in NORAM, the number of ESG ETFs has doubled from 212 in 2020 to 414 in 2024. However, the region has experienced a slowdown in product launches as interest waned due to political discord surrounding ESG.
Disclaimer
This newsletter is for informational purposes only and is not financial advice. We do not guarantee the accuracy of the information or calculations provided. It is essential to consult a qualified financial advisor before making any investment decisions. We are not responsible for any errors or omissions in the data. Investing in ETFs or any financial instrument involves risk, and you should conduct your own research. Past performance does not guarantee future results. By using this newsletter, you agree to these terms and conditions.