In July, Thematic ETFs Attracted Inflows of $1.5 Billion

Thematic ETFs

According to data derived by ETFGI, thematic exchange-traded funds had new capital inflows of $1.51B throughout the course of July. Even so, the sector’s overall assets have decreased since the end of 2021.

Thematic ETFs Inflow

The month of July saw inflows into the sector for the fourteenth consecutive month. As of the end of July, inflows into thematic ETFs listed internationally were $22.69 billion.

On a broader scale, assets under management for thematic ETFs and ETPs climbed from $225 billion at the end of June to $241 billion, a rise of 7.2%. Despite the fact that more money was invested in July, the total area, which includes ETFs and ETPs, will have 13.8% fewer assets under management in 2022. At the end of 2021, the total AUM was $279 billion; it is currently $241 billion.

Investors have been compelled to become more confident in their investment choices as a result of the decrease in the market as a whole in 2022 as a result of inflationary pressures. They have switched from thematic flavors to more strong index tracking and dividend-based funds.

The panorama of themed exchange-traded funds (ETFs) is a prominent field that includes a wide range of niche markets, from cannabis to robotics, as well as cryptocurrency, innovation, places, and green energy.

iShares S&P Global Clean Energy Index ETF (NASDAQ:ICLN), Global X Robotics & Artificial Intelligence ETF, ProShares Bitcoin Strategy ETF, ARK Innovation ETF, KraneShares CSI China Internet ETF, and ETFMG Alternative Harvest ETF are six examples of funds.

MJ is down 46.6% on the year, compared to BOTZ’s decline of 39.2%, BITO’s 54.1%, ARKK’s 53.4%, KWEB’s 16.3%, and ICLN’s 7.5%.

In addition to thematic ETFs, actively managed ETFs received $8.22 billion in net capital inflows from investors in July 2022.

A likely peak in inflation and legislation opening the door for a boom in clean energy have helped beat-up meme and themed stock exchange-traded funds make big gains recently.

Featured Image:  Megapixl @Mauriceschuckart

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