US thematic ETF growth has increased 246% since 2020, according to the Global X report

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    Wen attributed this growth to things like cybersecurity and cloud computing, for both work and entertainment. Not only have the workplaces spent more on the cloud to support working from home and preparing for hybrid return models, but “grandmas and grandpas” who have never shopped online are now even buying groceries online. Parents like him, who hadn’t played video games in years, were reconnected with their children.

    Global X’s report excluded ESGs and only looked at US-listed ETFs. But, Wen said, National Bank data – which may define the thematic market differently – showed that Canada’s themed ETFs accounted for slightly more of the overall ETF market than their US counterparts gave.” At the end of the second quarter of 2021, Global X reported that ETF themed AUM represented 2.2% of the US ETF industry’s AUM of $ 6.5 trillion. National bank data showed that thematic ETFs accounted for 3.3% – or $ 9.5 billion – of the total Canadian ETF market of $ 286 billion.

    Global X’s report said the US launched 11 new themed ETFs during the quarter – five in disruptive technology, three related to people and demographics, and three in physical infrastructure. This included Global X’s Clean Water ETF, which gives investors access to multiple aspects of the global clean water chain to help address the global water crisis. In the US, no thematic ETFs closed during the quarter.

    The report covers 30 topics in three categories: disruptive technologies (big data, mobility, digital content, fintech, connectivity and robotics), people and demographics (new consumers and health), and the physical environment (climate change and infrastructure development). The AUM rose most strongly in the areas of the Internet and electric vehicles in the emerging countries. It rose in the disruptive technology and physical environment categories, but fell slightly in the people and demographics categories.

    Infrastructure-related and broad-based technology ETFs saw the largest inflow over the quarter, with funds like Ark Space Exploration, Global X Data Center REITs & Digital Infrastructure ETF, and Defiance Next Gen H2 ETF each seeing more than 82% gains.

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