July 24, 2021

the success of responsible index funds

Specialist in ETFs (Exchange Traded Fund), Lyxor Asset Management announced on June 10 that it had collected more than one billion euros in assets on its eight climate index funds, just one year after their launch. “Over the past year, we have witnessed the gradual awareness by institutional investors that Climate ETFs can be an instrument of choice in the fight against global warming, because they make it possible to reorient large-scale capital towards low-level investments. carbon “, welcomes Arnaud Llinas, Head of Index and ETF Management at Lyxor Asset Management.

ETFs are not immune to trends and fashions, on the contrary. The industry is experiencing significant product creation dynamics and new strategies are emerging very regularly. From the most serious to the most eccentric; from the general public to the most specific.

In general, there is a strong trend in this market: the enthusiasm of investors for thematic ETFs. Products that also work well under active management. “The themes are what is popular today, confirms Stellane Cohen, president of the online wealth management company Altaprofits. It speaks to people! “

The past year has seen this trend spread to index management. Thus, 17 new thematic products were created in Europe in 2020, a record figure according to data provider Morningstar. Thematic ETFs attracted € 9.5 billion in fundraising, allowing the assets under management of this category of index funds to almost triple.

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What are the preferred themes? The collection focused in particular on products related to the energy transition (for a third of the sums collected) or on the topic of connectivity (a category which notably includes cybersecurity and cloud computing). These products have enjoyed colossal performance, which has contributed to their appeal. For example, iShares Global Clean Energy ETF support grew 140% in 2020. WisdomTree Cloud Computing ETF gained over 90%

In addition to these broad themes, more specific themes have been added, says Morningstar, with the creation of ETFs covering video games and eSport, telemedicine and digital health … A trend which is illustrated with the very recent arrival in France the American manager VanEck, which offers ETFs in the fields of eSports and semiconductors.

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