Top Thematic ETFs in the first quarter of 2022

The market's first chapter in 2022 was eventful after Russia invaded Ukraine and the drastic changes in macroeconomic policies to cool off inflation. However, this did not fade the appetite of Thematic ETFs investors who added roughly $10 billion to Thematic ETFs in the first quarter of 2022. Almost $3.9 billion of these flows went into America-domiciled Thematic ETFs, $3.41 billion into Europe-domiciled ESG ETFs, and $2.65 billion into APAC-domiciled Thematic ETFs.

The most and least popular themes and ETFs in Q1 2022

Among the most popular themes of the first quarter were China Disruptive Technology – luring in over $1.58 billion. China Digitalization was close behind with $1.548 billion and Cybersecurity third with $1.42 billion.

The 5 most popular thematic ETFs globally were KraneShares CSI China Internet ETF (KWEB, $1.41 billion), SPDR S&P Global Natural Resources ETF (GNR, $678 million), ARK Innovation ETF (ARKK, $674 million), CSOP Hang Seng TECH Index ETF (3033, $632 million), and Alerian MLP ETF (AMLP, $584 million).

Meanwhile, the least popular themes over the same period were the Internet – witnessing outflows of $1.72 billion. Medical Treatment was the second least popular theme with outflows of $338 million, and Cloud computing third with exits worth $271 million.

As for the least popular ETFs, the list is led by First Trust Dow Jones Internet Index Fund (FDN, -$1.3 billion), ARK Next Generation Internet ETF (ARKW, -$416 million), Global X U.S. Infrastructure Development ETF (PAVE, -$367 million), iShares Healthcare Innovation UCITS ETF  (HEAL, -$338 million), and ARK Autonomous Technology & Robotics ETF (ARKQ, -$256 million).

The top 10 performing thematic ETFs

Highlighting the top-performing Thematic ETFs in America and in Europe are Energy Infrastructure ETFs and Natural Resources ETFs. This doesn't come as surprise considering the demand shock for energy and other commodities in a post-pandemic recovery with suppliers unable to keep up with the pent-up demand. Adding more fuel to the fuel was the Russia-Ukraine war which led Western nations to unleash thousands of sanctions on Russia, the offensive country, and an energy commodity powerhouse. This led prices to skyrocket and lift ETFs with exposure to companies engaged in Energy Infrastructure and Natural Resource themes.

The top 10 performing thematic ETFs in America in Q1 2022

• Ninepoint Energy Fund (NNRG): +40%
• Direxion Daily Dow Jones Internet Bear 3X Shares ETF (WEBS) +34%
• SPDR S&P North American Natural Resources ETF: +34%
• iShares Indice Carbono Eficiente (ICO2) Brasil ETF (ECOO11): +32%
• iShares North American Natural Resources ETF (IGE): +31%
• iShares Global Agriculture Index ETF (COW): +25%
• Pacer American Energy Independence ETF (USAI): +24%
• Alerian Energy Infrastructure ETF (ENFR): +23%
• Direxion Daily Cloud Computing Bear 2X Shares (CLDS): +23%
• Global X MLP & Energy Infrastructure ETF (MLPX): +23%

The top 10 performing thematic ETFs in Europe Q1 2022

• CoinShares Physical Staked Polkadot ETP (CDOT): +46.52%
• Alerian Midstream Energy Dividend UCITS ETF (PMLP): +22.72%
• iShares Agribusiness UCITS ETF  (SPAG): +18.24%
• Invesco Morningstar US Energy Infrastructure MLP UCITS ETF (MLPD): +17.92%
• Global X Hydrogen UCITS ETF (HYGN): +17.80%
• L&G US Energy Infrastructure MLP UCITS ETF : +15.72%
• SPDR MSCI Europe Climate Paris Aligned UCITS ETF (SPF5): +12.09%
• GPF Physical Electric Vehicle Metals ETC (TEVB): +11.63%
• Global X Blockchain UCITS ETF (BKCH): +10.92%

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