What's next for ESG? SEC punts on bitcoin ETF - CNBC ETF Edge Newsletter

FRI, APR 30, 2021

YOUR WEEKLY UPDATE ON TOP ETF TRENDS

A NOTE FROM BOB

What's next for ESG? Join us on ETF Edge this Monday at 1 PM when our guests are Armando Senra, Head of iShares Americas, who oversees the largest ETF portfolio in the world, including the new and red-hot BlackRock US Carbon Transition Readiness ETF (LCTU), an actively-managed portfolio of large- and mid-cap U.S. firms in the Russell 1000 Index that are selected and weighted with a preference for lower carbon emissions. He'll be joined by Sal Bruno, Chief Investment Officer of IndexIQ, who manages his own ESG ETF, and Todd Rosenbluth from CFRA, who will update us on the other big source of inflows for 2021: thematic and "factor" ETFs.

Factor and momentum inflows strong. There's oceans of money coming into ETFs, and not just in ESG. Factor ETFs that weight stocks by value, momentum, quality, and size are also raking in money. BlackRock's iShares has the most comprehensive set, including the USA Value Factor ETF (VLUE), USA Momentum Factor ETF (MTUM), USA Quality Factor ETF (QUAL) and the USA Size Factor ETF (SIZE). Todd Rosenbluth wrote about the money coming into factor ETFs and will discuss with us on ETF Edge. The Momentum ETF, which focuses on stock-specific six- and 12-month performance records, will rebalance at the end of May, and Todd thinks it's possible Amazon could be tossed out.

Thematic ETFs are so popular that you shouldn't be surprised our friends at Amplify have filed for a Thematic All-Stars ETF, an ETF of ETFs that would incorporate all the major themes: disruptive technologies, fintech, health care innovation, industrial revolution, sustainability, etc.

Money just keeps pouring into ETFs. In less than four months, investors have already poured more cash into ETFs tracking U.S. stocks than in all of 2020, Bloomberg notes. That's $246 billion into ETFs in the first four months, vs. $231 billion for all of 2020.

The global ETF business is heading toward $10 trillion in assets, and the U.S. is far and away the leader, approaching $7 trillion in assets.

The SEC is punting again on a bitcoin ETF. This time they have designated June 17th as the next decision date, but don't hold your breath. With a new administration, they are likely to punt again.

For more analysis and actionable insights, catch me live on Mondays at 1 PM ET on ETF Edge.