If in a year as turbulent as 2020, the Thematic ETFs achieved such attractive returns that consistently attracted investors, who spent a not inconsiderable amount of 9.5 billion euros, to reach an all-time high of € 22.7 billion in assets under management in Europe. Despite the volatility of the markets and the health and economic uncertainties, they did not diminish the appetite of investors in any of the 2020 quarters, as if it happened in 2018:
Among the factors behind thematic funds are both the ease of understanding of the themes, but also the returns, and in this sense it can be said that practically 92% of the thematic ETFs listed in Europe outperformed the MSCI World Index. Among the thematic ETFs with the highest returns were:
As can be seen, they clearly outperformed a global index such as the MSCI World, which only rose 14.06%, while the iShare Global Clean Energy did so by more than 140%.
However, this year it lags behind, with a negative return of 15.69%, like that of WisdomTree Cloud Computing of -6.33, when the only one that maintains a strong positive distance with the MSCI World is the ETF of Invesco Elwood Global Blockchain, whose profitability is 43.5%. Clearly you can win if you choose the right thematic ETF at the right time, although the losses can be big too.
This year the boom is being in the cryptocurrency exchanged funds such as, for example: 21 Shares Binance BNP ETP that has gained more than 800%, followed by 21 Shares Ripple XRP + 268%. But you always have to remember to be cautious and look beyond the dazzling short-term returns.
Such has been the success of the thematic funds that 17 new thematic ETFs were launched last year, including those for energy transition, connectivity, telemedicine and digital medicine, among others: