During June, both mutual investment funds and exchange-traded funds or ETFs continued to be favored by investor appetite.
At the end of June, there were 68 thematic UCIT ETFs, with total assets of 37.7 billion assets, with a monthly increase of 6.9%, and where demographic themes experienced the highest monthly inflow of assets (11.4%, followed by physical environment (7.1%) and disruptive technologies (5.8%).
Flows to Thematic ETFs UCITS showed net inflows of $ 986 million, after exits of 112 million dollars in May. The themes related to climate change remains in the limelight, drawing the largest net inflows again in June, with a few $ 439 millionThis is most likely the result of the drive to invest in sustainable infrastructure by both the bipartisan infrastructure program in the United States, as well as the flows of the Next Generation program in Europe.
The vast majority of inflows went to clean and renewable energies with about 317 million dollars, driven by large corporate investments, such as those announced by Amazon – which aims to boost 100% of business activities with renewable energy by 2025; also the Ikea foundation and the Rockefeller also announced that they would donate about 50 million dollars each to support renewable generation projects in developing countries.
The themes of celectronic commerce, especially focused on emerging markets, they registered important net inflows in the month for 125 million dollars. On June 21 and 22, Amazon Prime Day generated approximately $ 6.8 billion in sales (+ 9% year-on-year), according to Morgan Stanley. Other e-commerce platforms tried to emulate Amazon sales during this period, thus acting as a catalyst for the theme as a whole. But health, an extremely important topic, was not far behind, and in June they regained the interest of investors with net flows of 83 million dollars, amid the rapid increase in cases of Delta variants worldwide.
Thus, at the end of the sixth month of the year, the European thematic ETFs that experienced the greatest increase in equity are: L&G Digital Payments UCITS ETF, with a monthly increase of 209%, followed by Vaneck Vectors Digital Assets, with an increase in AuM of 80%, First Trust Indxx NextG Ucits ETF, another one from L&G, the Healthcarte Breakthrough Ucits ETF, WisdomTree Cybersecurity, among others. While those that showed a greater drop in monthly AuM stand out with double percentage digits Xtrackers Future Mobility, GlobalX Telemedicine & Digital, Amundi Smart City, Global X Video Games & Esports, Invesco KBW Nasdaq Fintech, among others. Among the categories with the highest volume of assets are: Disruptive technology with just over $ 20 billion in AuM), followed behind by Physical Environment with over $ 10 billion and finally demographic with $ 5 billion.