New ETFs: future trends, blockchain & green gold ETFs

The list of Exchange Traded Funds (ETFs) available for North American and European investors continued to grow last week, with 20 new ETFs launched in the United States and Canada, and 14 in Europe.

We scanned the list for you and review three of the hottest launches of the week. Keep reading to find out all about Goldman Sachs Future Planet Equity ETF (GSFP), Global X Blockchain ETF (BKCH), and AuAg ESG Gold Mining UCITS ETF (ESGO).

More than half of new ETFs are thematic and ESG ETFs

More than half of the new ETF launches this week focus on thematic and ESG investing. We also find some inflation-protected bonds, actively managed and a few factor ETFs in the mix.

In North America, two of the most notable launches are the Goldman Sachs Future Planet Equity ETF (GSFP) and the Global X Blockchain ETF (BKCH). They offer new opportunities for investors to get exposure to high-growth potential emerging trends. GSFP ETF offers investors to be part of the sustainability revolution that looks to change the industries around the world and BKCH ETF offers investors exposure to companies that stand to benefit from the adoption of blockchain technology.

In Europe, the AuAg ESG Gold Mining UCITS ETF (ESGO) aims to give investors the option to get exposure to gold mining companies with the best ESG credentials and invest in the sector more responsibly.

Here’s what you need to know about these new ETFs.

1. GSFP – Goldman Sachs Future Planet Equity ETF

• Launch Date: 15/07/2021
• Provider / Issuer: Goldman Sachs Asset Management
• AUM: $27.03 M
• Expense Ratio: 0.75%
• Domiciliation: United States

Goldman Sachs Asset Management just expanded its thematic ETF offer with the launch of the Goldman Sachs Future Planet Equity ETF (GSFP). The GSFP ETF is a transparent actively managed equity ETF that, according to the Goldman website, draws ideas from a team of over 80 analysts and portfolio managers.

GSPF is designed to help investors to position their portfolios on the side of long-term secular growth trends by investing in companies that can address environmental problems across clean energy, resource efficiency, sustainable consumption, the circular economy, and water sustainability.

Governments, regulators and consumers are aligning to drive a sustainability revolution - and ETF issuers have been aggressively marketing ESG and sustainability-themed ETFs meaning that GSFP enters a crowded market of over 800 ETFs with a sustainability theme.

GSPF has 32% exposure to the Industrials sector and 25% exposure to the Materials sector. The top 3 country exposures are USA (42%), Japan (11%) and the Netherlands (6.1%).

See GSFP share price, performance since launch, and more here.

2. BKCH –Global X Blockchain ETF

• Launch Date: 14/07/2021
• Provider / Issuer: Global X ETFs
• AUM: $3.73 M
• Expense Ratio: 0.5%
• Domiciliation: United States

Famous for its thematic ETFs, Global X expanded its offer again with the launch of the Global X Blockchain ETF (BKCH). The BKCH ETF tracks the Solactive Blockchain Index and seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in Digital Asset Mining, Blockchain & Digital Asset Transactions, Blockchain Applications, Blockchain & Digital Asset Hardware, and Blockchain & Digital Asset Integration.

BKCH ETF is an opportunity for investors who want to get exposure to a market that, according to the IDC, could surpass $19bn by 2024.

BKCH tracks a narrow theme and the portfolio is fairly concentrated across 25 holdings. Unsurprisingly, BKCH has a heavy allocation to the Technology sector (73%) with Financials representing 16% of the portfolio.

At 50bps BKCH is competitively priced compared to competitive ETFs such as the actively-managed Amplify Blockchain Leaders ETF BLOK (70bps) and the Harvest Blockchain Technologies ETF (65 bps)

See BKCH share price, performance since launch, and more here.

3. ESGO – AuAg ESG Gold Mining UCITS ETF

• Launch Date: 15/07/2021
• Provider / Issuer: HANetf
• AUM: $0.96 M
• Expense Ratio: 0.60%
• Domiciliation: Ireland

European investors have the first opportunity to get exposure to an ESG considerate Gold Mining ETF. Issued by whitelabel platform HANetf, the AuAg ESG Gold Mining UCITS ETF (ESGO) is the first ESG-focused gold mining ETF.

It tracks the Solactive AuAg ESG Gold Mining Index and seeks to offer exposure to an equal-weighted basket of 25 companies in the gold mining industry with the lowest ESG risk.

This risk is however sector relative, and Gold mining is a heavy industry which makes use of many acids and other environmental pollutants, and investors need to be aware of the difference between the previously non-existing and now new concept of environmentally-friendly gold and gold that is mined with reduced or managed environmental impact.

Some mining firms are making steps to offset or reduce their impact on the environment with initiatives like building solar farms on-site, use of fuel-cell mining trucks, and restoration of sites post-project to leave reusable infrastructure such as roads, water, and electricity and ESGO ETF is an option to invest in gold miners that are embedding ESG practices to their operations.

See ESGO share price, performance since launch, and more here.

Review GSFP ETF, BKCH ETF, ESGO ETF, and over 7,000 others with our ETF screener.

To know more about ESG investing visit our ESG Observatory.