Category: Business

Highlights ETFs have seen increased adoption from investors in the last few years leading to growth in asset under management (AUM) for the industry. Many stock market investors prefer to invest part of their funds in ETFs as they replicate indices performance and have lower commissions. Exchange-traded funds (ETF), which trade like a regular stock on the exchange platform, can be structured to track different underlying instruments like index, specific sector, or theme. ETFs have seen increased adoption from investors in the last few years, leading to growth in asset under management (AUM) for the industry. Many stock market investors prefer to invest part of their funds in ETFs as they replicate the indices performance and have lower commissions. Over the years, theme or segment-based ETFs like the green energy ETFs segment and many others has gained popularity amongst investors. Top ETF Trends of 2022 © 2022 Kalkine Media® Let us look at some of the ETF themes that are in vogue and will be key trends in 2022: ETF based on cryptocurrencies Cryptocurrency has gained popularity amongst investors as an alternative asset class to invest. In the last two years, a lot of investment was diverted towards the crypto market, leading to higher prices of some cryptocurrencies like Bitcoins and Ethereum. Based on this rising trend, the first cryptocurrency-based ETF was launched in the US market in October 2021. As per market experts, more ETFs that track the single cryptocurrency or basket of digital tokens could receive fund inflow and gain popularity in 2022. ETFs based on environmental, social and governance (ESG) parameters Funds based on ESG parameters that invest in companies that follow the ESG practices are rising. In 2021, ESG-based funds witnessed a record net inflow of capitals which was higher compared to prior years. This trend is expected to continue in 2022 with record funds inflow in companies that operate ethically towards the environment and society. Technology ETFs As the world moved from office to remote working during the pandemic, it led to the rise of consumer and innovative technology companies. In 2022, innovative technology companies will continue to dominate, leading to higher returns for ETFs funds. Hence, the technology-focused ETFs might receive high inflows, especially those that invest in companies operating in the future and innovative technology.