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NEWSLETTER | 18 Nov 2022

We covered the note from Aniket Ullal, vice president of ETF data and analytics at CFRA Research, this week which reported that the recent market rally in the US saw ETFs representing the major asset classes bounce back in Q4 (through November 11, 2022), after a particularly challenging first three quarters, driven by inflation being lower than expected.

The Q4 rebound included ‘risk-on’ asset classes, such as US small caps, emerging market equities, and high yield corporate bonds, he writes. The top 10 thematic ETFs with the highest ‘bounce’ from the November 10 inflation announcement included four ARK ETFs and themes like online retail, cloud computing, and the gig economy.

Sounds familiar?

Amundi also noted improved investor confidence in October, citing a more than three-fold increase in ETF inflows on the previous month, while BlackRock’s 2023 thematic report predicted key thematic themes for next year, including, in agreement with CFRA’s Ullal, tech firms. BlackRock’s Jay Jacobs writes. "We believe cybersecurity and robotics have the potential to buck the economic cycle given cybersecurity has moved from niche to necessity and robots are mission-critical in fighting supply chain challenges, labour shortages and inflation."

In quite a different market, Gill Wadsworth interviewed Tim Collins of Elemental Advisors who believes that the market in psychedelic drugs is set to flourish. A study from Data Bridge Market Research predicts the global psychedelic drugs market is growing with a CAGR of 13.3 per cent in the forecast period of 2022 to 2029 and is expected to reach USD6,401.95 million by 2029 from USD 2,386.72 million last year.

According to figures from Elemental Advisors, their passive psychedelic drugs ETF, PSYK, returned -17.34 percent between 1 February and 17 October this year. Meanwhile the S&P500 was down 21.39 per cent and the Nasdaq Composite down -33.84 per cent at the time of interview.

If you are reading this in the UK on the morning of Friday 18th November, please join me in conversation with Kevin T. Carter of EMQQ Global on the potential growth prospects for emerging market internet firms on Asset TV.

To watch the interview please click here.

Beverly Chandler, Managing Editor

For live updates please follow us on Twitter and LinkedIn.

Companies in this issue

AXS Investments
Amundi
BlackRock
CFRA
Elemental Advisors
EMQQ Global
Fidelity International
NYSE
Pimco
Simplify Asset Management
US Benchmark Series

BlackRock’s 2023 thematic outlook report, Time to Rethink Growth, finds Jay Jacobs, US head of Thematics and Active Equity ETFs, commenting that in 2023, the potential for performance dispersion among equities could mean it finally pays for growth and tech equity investors to consider getting selective again.

Aniket Ullal, vice president of ETF data and analytics at CFRA Research, has published a note on the recent market rally in the US, writing that ETFs representing the major asset classes bounced back in Q4 (through November 11, 2022), after a particularly challenging first three quarters, driven by inflation being lower than expected.

Taking a trip into psychedelic ETFs

The nascent psychedelic ETF market looks set to capitalise on massive investment in companies offering hallucinogenic drugs such as LSD and magic mushrooms which are increasingly believed to be effective in treating depression, ADHD and chronic pain.