Cybersecurity ETFs are on this week’s top ESG ETF list

This week’s top ESG ETFs include Cybersecurity ETFs, California carbon futures, Chinese Tech stocks and Uranium ETFs. Below we highlight the reasons why these ETFs performed well this week, along with a list of top ESG ETFs.

Cloudflare leads gain for Cybersecurity ETFs

American web infrastructure and website security company Cloudflare continue to shine with its share price rising 8% last week and around 65% in October. The company is expected to release in third quarter results on November 4th, 2021. Investors have been already optimistic about the company's future since its second quarter results, which showed a 53% revenue growth year-over-year. This was a record for client retention and record number of large client sign-ups, adding 140 six-figure customers during Q2 for a total of 1,088.

With large exposure to Cloudflare, Simplify Volt Cloud and Cybersecurity Disruption ETF (18.35%), WisdomTree Cybersecurity Fund and WisdomTree Cybersecurity UCITS ETF (7% each) gained +5.78%, +3.51% and +3.50% respectively.

California Carbon futures pop amid energy crunch

The KraneShares California Carbon Allowance ETF which offers exposure to the California cap-and-trade carbon allowance program through California Carbon Allowances (CCA) futures gained +7.41% last week.

Carbon allowance prices are rising in the United States as energy demand grows with winter around the corner. Natural gas shortages and rising energy costs increased demand for oil, a heavily polluting substance to meet power needs.

The California cap-and-trade program was created in 2013 to assist the state’s goals of its greenhouse gas emissions being reduced 80% below 1990 levels by 2050. It roughly accounts for 85% of all emissions in the state and covers large industrial plants, large electric power plants, and natural gas and petroleum distributors.

China ESG leaders ETFs lifted by resurging Chinese Tech stocks

With large exposure to Chinese technology stocks, the American and European versions of KraneShares MSCI China ESG leaders ETF gained around 3.8% each on resurging Alibaba, Meituan and Tencent (~25% of total holdings). These Chinese companies among others were revived by bargain hunters praying on depressed technology shares after an intensive government crackdown on major growth sectors.

These ETFs target companies with high Environmental, Social and Governance (ESG) ratings relative to their sector peers.

Uranium ETFs continue to go nuclear

North Shore Global Uranium Mining ETF (URNM) and Horizons Global Uranium Index ETF (HURA) gained more than 4% each, as interest in Uranium and Nuclear energy continue to grow amid the global energy crunch. Last week, Sprott Physical Uranium trust bought an additional 1.15 million of physical Uranium, driving Uranium prices close to $49/lb plateau, a level not seen in a month.

Top 10 ESG ETFs of the week:

• KraneShares California Carbon Allowance ETF: +7.41%
• Simplify Volt Cloud and Cybersecurity Disruption ETF: +5.78%
• North Shore Global Uranium Mining ETF: +4.66%
• Horizons Global Uranium Index ETF: +4.11%
• KraneShares MSCI China ESG Leaders UCITS ETF: +3.84%
• KraneShares MSCI China ESG Leaders Index ETF: +3.82%
• Virtus Duff & Phelps Clean Energy ETF: +3.78%
• Tabula Haitong Asia ex-Japan High Yield Corp USD Bond ESG UCITS ETF: +3.52%
• WisdomTree Cybersecurity Fund: +3.51%
• WisdomTree Cybersecurity UCITS ETF: +3.50%

Keep reading:

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