Global X’s European Thematic UCITS Report for June 2021 reveals that in June, UCITS Thematic ETFs recorded USD986 million of net inflows, rebounding after USD112 million of net outflows in May.
Morgane Delledonne, Director of Research, writes that climate change related themes attracted the largest net inflows again this month with USD439 million, spurred by a likely USD266 billion new public spending in sustainable infrastructures as part of the US bipartisan infrastructure deal.
Most of the net new inflows went into clean and renewable energy themes (USD317 million), amid new large corporate investments. In June, Amazon announced its updated initiative to power 100 per cent of company activities with renewable energy by 2025. The Ikea Foundation and the Rockefeller Foundation also announced that they will each donate USD50 million to support renewable generation projects in developing nations.
E-commerce themes, notably focused on emerging markets, recorded significant net inflows on the month (USD125 million). On June 21-22, Amazon Prime Day generated approximately USD6.8 billion in sales (+9 per cent yoy), according to Morgan Stanley. Other e-commerce platforms try to emulate Amazon’s sales during this period, thus acting as a catalyst for the theme as a whole.
Flows into health themes rebounded in June (USD83 million), amid the rapid rise in Delta variant cases globally forcing tougher restrictions.