Thematic investing has seen assets rise by USD27 billion, accumulating to USD133 billion post pandemic, according to CNBC and Mirae Asset Global Investments writes that major economic trends dominate global consumption, which traces back to sustainable usage of Earth’s resources, giving technology that keeps or amps up society’s living standard with a sustainable tilt a boost in demand.
The firm writes that both lithium and autonomous driving & electric vehicles technologies, two topics that emphasise efficiency and the avoidance of negative externalities, are now moulded in two new ETFs, which Mirae Asset Global Investments reissues under its TIGER ETF brand in Korea. Both the Mirae Asset TIGER Synth-Global Lithium & Battery Tech Solactive ETF (394670 KS) and Mirae Asset TIGER Global Autonomous & Electric Vehicles Solactive ETF (394660 KS) started trading on July 20th on Korea Exchange (KRX).
Lithium is one of the most crucial elements in the electrification of devices, Mirae writes. Batteries based on lithium technology score with high-capacity potential and low self-discharge, compared to legacy battery technology, making the alkali metal a very precious commodity. Mirae Asset’s new TIGER Global Lithium & Battery Tech ETF tracks the Solactive Global Lithium Index, which reflects the performance of the largest and most liquid listed companies active in exploration and/or mining of lithium or the production of Lithium batteries. The index is calculated as a total return index in USD and adjusted semi-annually.
Mirae Asset’s second ETF that launched simultaneously on July 20th is the TIGER Global Autonomous & Electric Vehicles ETF. This ETF seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (“EVs”), and EV components and materials. According to the International Energy Agency’s “Global EV Outlook 2021”, EV registrations increased by more than 40 per cent in 2020. Still, EVs accounted for less than 5 per cent of new cars sold, highlighting substantial room for further adoption.
“Imagine a world with lower emissions, optimised traffic, and reduced car crashes. By teaming up with Mirae Asset Global Investments, the Solactive Autonomous & Electric Vehicles Index underpins an ETF designed to capture the ongoing changes in the transportation industry,” says Timo Pfeiffer, Chief Markets Officer at Solactive. He adds: “With advancements in autonomous & EV technologies and batteries comes a strong growth signal for producers, which benefit directly from this long-term trend. We are excited that Mirae Asset takes the opportunity to opt again for our indices, strengthening our partnership with them in their Korean home-market. We are looking forward to the next projects soon.”
Chun Yong Rhie, Chief Investment Officer at Mirae Asset Global Investments, says: “Investment interest in lithium technology, autonomous vehicle technology, and electric vehicles among Korean investors continues to gain strong momentum in 2021. TIGER Global Lithium & Battery Tech ETF stands to benefit from the accelerated growth of the secondary battery industry on the back of global renewable energy policies. Furthermore, industry growth will be driven by EV manufacturers’ efforts to increase battery efficiency through R&D investment. The TIGER Global Autonomous & Electric Vehicles ETF offers exposure to companies involved in the autonomous vehicle technology, electrical vehicles, and EV components space.”
Rhie further adds that “the simultaneous launch of the two ETFs pairs well as the lithium & battery tech theme goes hand in hand with electric vehicles. The local listing of the two ETFs will allow investors to purchase the ETFs for their private pension and retirement pension accounts.”