Sunday, 05 July 2020

ETF February Launches Target Cloud Computing

BlackRock and First Trust Global Portfolio both expand their range of thematic ETFs with specialist products targeting new technology

One of the biggest investment growth areas in recent years, has been specialist thematic ETFs. These low-cost funds aim to capitalise on investor appetite for new technology: be it artificial intelligence, blockchain, robotics, or renewable energy.

This month BlackRock launched an ETF that specifically targets investments in the electric car market, which many are expecting to significant reshape the automative industry. Meanwhile First Trust Global Portfolio has launched its own ETF, this time following companies specialising in cloud computing.

February also saw the announcements that two veteran fund managers would be stepping down, after 40 plus years in the industry.

New ETF Tracks EV Market

BlackRock has expanded its thematic ETF range, with a new product tracking the electric vehicle market. With a growing emphasis on sustainable transport solutions this invests in companies involved in the manufacture of electric cars, as well as technology companies that supply batteries and relevant component parts. It will also invest companies that are involved in building the infrastructure needed to facilitate this switch.

This ETF will have a total expense ratio of 0.4% and will follow the STOXX Global Electric Vehicles & Driving Technology index.

According to BlackRock there are currently 1.1 million electric vehicles sold each year, but this is expected to rise to 60 million by 2040.

Cloud Computing ETF Launches

First Trust Global Portfolio has launched a new cloud computing ETF. This fund is part of its thematic range and will be listed on the London Stock Exchange.

Cloud computing tech stocks exchange traded fund news etf launch

As the name suggests this ETF will track companies actively involved in this specific part of the tech universe. It will track the ISE Cloud Computing Index and will have a total expense ratio of 0.6%.

First Trust Global Portfolio launched a number of thematic ETFs last year, including a blockchain ETF.


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