The ETF provider’s annual fund flow data has found that investors have directed their funds to gold and silver as the COVID-19 pandemic hit last year while “still steadily building their holdings in the thematic products”.
From the beginning of 2020 through to June, gold dominated flows into ETF Securities’ Australian funds, with investors paying $467.8 million for units in ETFS Physical Gold.
“The story has developed this year,” ETF Securities’ head of distribution, Kanish Chugh, said.
“Taking inflow figures from the beginning of the year to the end of June, flows into ETFS Battery Tech & Lithium ETF (ASX code: ACDC) accounted for more than 36 per cent of total flows over the period.
“The significant support from investors especially new investors that have entered the market over the past 18 months into our ‘Future Present’ range highlights how comfortable they are to incorporate and even build their portfolios around thematic exposures.
“Many investors understand now how to use thematic ETFs to capture the growth of long-term megatrends such as battery technology and robotics, automation and artificial intelligence.
“There was still strong support for gold and silver, with flows into ETFS Physical Gold (GOLD) accounting for 28 per cent of total flows so far this year and ETFS Physical Silver (ETPMAG) receiving more inflow than last year.”
Other tech-focused ETFs that have performed well so far this year include ETFS Morningstar Global Technology ETF and ETFS ROBO Global Robotics and Automation ETF.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
