ETF Global Outlook 2021

ETF Express 22/01/21

The big story this week has been the flood of flow stories, each detailing how extraordinarily buoyant the ETF world was during what was, by any measure, a difficult year. The headline figures come from BlackRock, which noted that, despite a rollercoaster year for sentiment, a record USD756 billion was added to global ETPs in 2020, surpassing the previous record set in 2017 (USD660 billion).

And top of the pops for all the observers and number crunchers was ESG, which in Europe, Bloomberg reports, accounted for almost 40 per cent of Europe’s ETP launches in 2020 and about the same share of industry inflows. Meanwhile, Lyxor, also focused on Europe, noted that ESG ETFs attracted the bulk of inflows in 2020, more than half of the total inflow (51 per cent) representing more than twice the amount of assets raised during the whole of 2019.

Lyxor notes that ESG ETFs haven’t suffered outflows in any single month since the start of 2019, and Amundi also noted that, in Europe, ESG and thematic ETFs dominated the year.

More ESG in this week’s newsletter, with John Willis, from not-for-profit organisation Planet Tracker, who brings a bracing call to arms to ETF issuers, saying that with the ETF universe indirectly and often unknowingly enabling deforestation, a handful of institutions controlling the majority of the ETF and index markets holds significant power of change.

Another huge theme currently for ETFs is the crypto theme, and this week has brought news that veteran crypto ETP providers CoinShares has launched on the, favoured-for-all-things-crypto, Switzerland’s SIX Exchange with a bitcoin ETP. We also have an interview with SIX, details of HANetf’s BTCE launch on SIX, and a recap on the volatile but growing world of crypto ETPs.

Back to earth and an investment style that has been out of favour over recent years is value and we have two pieces this week noting that Value appears to be making something of a return. Tom Cole from Distillate notes that this is Value 2.0, which updates outmoded forms of valuation, while Brandon Rakszawski from VanEck comments that Value in the form of the Wide Moat style of investing is enjoying a recovery.

This week also saw publication of the ETF Express Global Outlook for 2021 which, this year, reflects the views of eight global investors in ETFs who represent billions of dollars of ETF assets. Read the report here.

We have also launched the landing page for the first of our etfLIVE Spotlight series which will feature five key themes in ETF investing. Find out more here.

If you would like to receive this newsletter weekly, do register for free here.

Beverly Chandler
Managing Editor, ETF Express

Companies in this issue
AJ Bell
Alliance Investment Management
American Century Investments
CI Global Asset Management
Distillate Capital
Franklin Templeton
Harvest Portfolios Group
New Age Alpha
Orion Advisor Solutions
Planet Tracker
Sage Advisory
Sandaire Family Office
SIX Exchange
Sparrows Capital
Tabula Investment Management



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