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.

Takeaway:

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.

End Notes

Source: https://www.investordaily.com.au/markets/54647-thematic-etfs-ride-the-ai-nuclear-energy-wave