ETF Securities reports demand surge for technology ETFs

Feb 27th, 2017 | By | Category: ETF and Index News

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ETF Securities has reported that investor appetite for its range of technology exchange-traded funds has sharply accelerated recently, with AUM in the firm’s cyber security, and robotics and automation ETFs increasing by 60% thus far in 2017, reaching a collective $426 million.

ETF Securities reports investor demand surge for technology ETPs

Howie Li, Co-Head of CANVAS, ETF Securities.

The firm has accredited the spike in investor interest to President Trump’s promises to bring manufacturing back to the US and address cyber security issues which are said to have plagued the US election.

The ETFS ROBO Global Robotics and Automation GO UCITS ETF (LON: ROBO), launched in October 2014 in partnership with ROBO GLOBAL, has current assets under management of $321m, a rise of approximately 71% in 2017 so far. The product was Europe’s first global robotics and automation ETF, providing investors with a simple, liquid and cost-effective way to gain access to the rapidly evolving new megatrend of growing use of robotics in manufacturing. The fund’s total expense ratio (TER) is 0.80%.

The ETFS ISE Cyber Security GO UCITS ETF (LON: USPY), launched in October 2015, currently has AUM of $103m, growing approximately 34% so far in 2017. The ETF tracks an index comprised of global companies actively involved in providing cyber security technology and services. Its TER is 0.75%.

Howie Li, Co-Head of CANVAS at ETF Securities, commented: “We’ve been seeing strong inflows from investors since inception, but Trump has bumped interest in both products after making campaign cornerstones of bringing work back to the US, which will likely boost appetite for factory tech, and addressing the cyber security issues which are said to have plagued the election.”

Commenting on the long-term potential of the ETFs’ underlying industries, Li added: “We think robotics manufacturers and cyber security stocks will be key sectors to watch and seek exposure to because both sectors are part of an unparalleled technological revolution. But in the short term President Trump’s constant pronouncements from the Oval Office have helped to raise investor awareness.”

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