Global X ETFs & ETF Stream: Q2 2021 European Investor Survey
Global X ETFs and ETF Stream partnered to explore the current usage of thematic ETFs in Europe and took a dive into specific megatrends and sustainably themed investing. In support of these objectives, an unbranded online survey was conducted in May and June 2021, among 50 professional European investors.
In the past two months, we surveyed investors at an interesting point in time. The global economy is on the edge of a full reopening, led by the United States. However, the recovery is conditional to the global vaccination rollout, which could drive a divergence in the markets. The rapid rise of inflation is puzzling investors on whether it is a temporary surge, or an early sign that the economy is overheating spurred by fiscal and monetary supports. While the public health risks associated with COVID-19 may soon be behind us, lingering effects from the pandemic will continue to impact our society and the economy for years to come. Our research captures European investors’ views on investing long-term growth strategies with thematic ETFs, key megatrends and sustainably themed investments:
- Investors generally allocate between 0 to 15% of their portfolio to thematic ETFs, and half of the respondents declared that they are willing to increase their allocation in the next 12 months. The remaining half indicated their intention to maintain their current exposure
- Investors strongly believe that of the options presented, Telemedicine & Digital Health and Cleantech adoption will accelerate the most compared to other themes in the post pandemic world
- Responses suggested a divergence in ways investors gain exposure to sustainable investments. A third of respondents declared using thematic funds to focus on issues related to social and/or environmental challenges such as climate change, eco-efficiency and health. But another third of investors revealed being unsure about the benefits of thematic investing for the pursuit of sustainable objectives, furthering the case for greater education regarding sustainably themed investing
- Most investors use the United Nations Sustainable Development Goals, or SDGs, for assessing the sustainability of a theme. The 17 SDGs were developed as a part of the 2030 Agenda for Sustainable Development which was adopted by all United Nations Member States in 2015. While not developed for the investors’ community, the SDGs can support investors in understanding which investment areas are sustainable. SDGs give a common language with which to shape and articulate such an investment strategy