The recent volatility in equities may have affected certain thematic sectors, but the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) and Global X Autonomous & Electric Vehicles ETF (DRIV) have both seen strong year-to-date inflows of $108 million and $614 million, respectively.
Inflation fears have been helping to fuel sell-offs in the market as of late. Thematic funds have been particularly sensitive to the recent correction, but investors still have faith in funds like BOTZ and DRIV.
BOTZ seeks to invest in companies that stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
Additionally, BOTZ seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Robotics & Artificial Intelligence Thematic Index. The index itself captures large- and mid-cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries.
DRIV seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (“EVs”), and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt.
The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Autonomous & Electric Vehicles Index.
Thematic Inflows from Retail Investors and Institutions
It’s not just retail money flowing into thematic exchange traded funds. There’s an even larger number of institutional investors.
“The hands seem to be stronger than the market may suggest,” said Jay Jacobs, head of research for Global X, in an interview with CNBC. “Over 50% of the flows last year [in our funds]came from financial intermediaries, like advisors managing money for clients, 15% from institutions like pensions or endowments, and only one-third from retail. … So it’s not true that the only people buying these are retail investors with weak hands. People still believe in the long-term thesis and are not pulling money out.”
For more news and information, visit the Thematic Investing Channel.