News Digest: Thematic ETFs set to ride the AI, nuclear energy wave

February 24, 2024

News Digest:

Thematic ETFs have witnessed increased investments over 2023 around select industries that include artificial intelligence, big data, robotics, automation, and nuclear energy, says a report quoting Tracksight’s 2024 Global ETF Survey.

The survey notes that the global ETF market grew at an annual rate of around 17.2%, soaring from $2.61 trillion in 2014 to $11 trillion in 2023. Assets under management in the Asia-Pacific region grew from $152.2 billion in 2014 to $741.6 billion last year. However, the report said ETFs trailed in terms of asset class flows after spiking up during the pandemic.



In 2021, ETFs drew attention to themes including net zero, digitization, alternative energy, and cybersecurity. However, rising interest rates and monetary tightening saw thematics hit a roadblock in 2022, barring energy transition as a segment. A year later, the ETFs saw a $14.9 billion decline, but the advent of ChatGPT and other AI innovations proved attractive as did reports of new nuclear facilities in China, India, and Japan.

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