Model Portfolios | News | Contact
Articles

The Next Big Theme: October 2021

Oct 6, 2021

View all Pedro Palandrani's ArticlesPedro PalandraniPedro Palandrani

The Next Big Theme: Thematic Newsletter Global X ETFs

Electric Vehicles & Cleantech

U.S. Zeroes In On Emissions From East to West

California and New York are responsible for two of the latest developments in the global effort to reduce production and use of internal combustion engine vehicles. California set a mandate for light-duty autonomous vehicles to be emission-free by 2030.1 Autonomous vehicles represent only a small percentage of California’s vehicles, but in a future where driverless taxi services are poised to thrive, this mandate could prevent a major source of pollution. On the opposite coast, New York set a goal of zero-emission passenger cars by 2035 and zero-emission medium and heavy-duty vehicles by 2045.2

Lithium & Battery Tech

EV Revolution Charges Lithium Demand

Lithium demand is expected to outpace global supply as the economy moves toward an all-electric future. The imbalance is already pushing lithium prices meaningfully higher.3 Lithium prices hit a three-year high with sales of electric vehicles up 150% to just over 3 million units in the first seven months of the year.4 In the first half of September, domestic prices in China, the largest lithium market, increased more than 20%. With lithium-ion batteries expected to remain the primary battery technology, mining capabilities must increase. Leading lithium producer Albemarle, recently announced that it would double lithium production at its facility in Silver Peak, Nevada.5

Genomics

Human Trials Progress

Excision BioTherapeutics continues to make progress on CRISPR-based gene editing to treat patients with HIV. After promising results in early trials, the Food & Drug Administration (FDA) cleared the therapy for human testing.6 Gene editing has the potential to replace the standard retroviral therapy most HIV patients receive. The FDA also approved a trial that uses CRISPR genome editing to eradicate cancer cells in patients with acute myeloid leukemia.7 To treat patients with sickle cell disease, doctors at Boston Children’s Hospital are using gene therapy to activate healthy fetal genes and deactivate mutated adult genes as part of a clinical trial.8

E-commerce

Warehouses Wanted

New data from commercial real estate services firm CBRE confirmed a post-pandemic e-commerce trend: soaring online sales are quickly filling industrial warehouse space. In Canada, industrial vacancy rates in the Greater Montreal Area dipped to a record low of 1.2% in Q3, compared to 8% just five years ago.9 The U.S. has a similar squeeze; to match package volume, the country must add at least 330 million square feet of warehouse space dedicated to e-commerce by 2025.10 For now, in a bid to handle the package surplus, logistics provider DHL Supply Chain expects to hire 20% more seasonal workers this year.11 DHL, like many other providers, is also turning to collaborative robots to help automate order picking.

Internet of Things

Biden Launches Initiative to Secure Semiconductor Supply

The Biden administration announced a new initiative to increase transparency in the semiconductor supply chain, which remains hamstrung by the global production shortage. The shortage has inflated the prices of vehicles and other electronic goods. It even caused manufacturers to halt the production of some electronic devices in September. Tech giants such as Intel, Samsung, Apple, GM, Ford, TSMC, and Stellantis attended the President’s virtual event and pledged $75 billion to mitigate long-term supply chain deficiencies, but the hope is that the initiative helps alleviate some of the bottlenecks sooner.12 Tesla CEO Elon Musk recently claimed that new semiconductor plants in the works will effectively make the chip shortage a short-term issue.13

Social Media & Blockchain

Twitter Promotes Crypto Tips

Twitter CEO Jack Dorsey views cryptocurrency as the internet’s “native currency,” so the company integrating Bitcoin on its platform is a natural fit. As part of its ongoing monetization push, Twitter announced that users will be able to send and receive tips using Bitcoin. Twitter is also looking into authenticating users’ nonfungible tokens (NFTs). Crypto continues to gain legitimacy with users attracted to its decentralized finance and blockchain technology, particularly users in developing markets. Africa is one of the fastest-growing markets for crypto with adoption increasing by a hefty 1,200% over the past year.14 Also, India made headlines as the country with the most crypto holders at 100 million, which is 7.3% of its population.15

THE NUMBERS

The following charts examine returns and sales growth expectations by theme, based on their corresponding ETFs.

INTRO TO THEMATIC INVESTING COURSE – ELIGIBLE FOR CE CREDIT

Global X has developed an interactive, self-guided Intro to Thematic Investing course, that is designed to share the latest ideas and best practices for incorporating thematic investing into a portfolio.

This program has been accepted for 1.0 hour of CE credit towards the CFP®, CIMA®, CIMC®, CPWA® or RMA certifications. To receive credit, course takers must submit accurate and complete information on the requested forms, complete the entire course, and receive a 70% or higher on the Intro to Thematic Investing Quiz.

For Canadian course takers: This program has been reviewed by FP Canada and qualifies for 1 FP Canada-Approved CE Credit, in the category of Product Knowledge, towards the CFP® certification or QAFP™ certification. To receive credit, course takers must submit accurate and complete information (including Job Title) on the requested forms, complete the entire course, and receive a 70% or higher on the Intro to Thematic Investing Quiz.

Questions on receiving CE credit may be sent to: Education@globalxetfs.com

KEEP UP WITH THE LATEST RESEARCH FROM GLOBAL X

To learn more about the disruptive themes changing our world, read the latest research from Global X, including:

ETF HOLDINGS AND PERFORMANCE:

To see individual ETF holdings and current performance across the Global X Thematic Growth Suite, click the below links:

Category: Reports

Topics: Consumer Economy, Disruptive Technology, People & Environment

new windowSave PDF

Related Articles

Investing involves risk, including the possible loss of principal. There is no guarantee the strategies discussed will be successful. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments may be subject to higher volatility. The funds are non-diversified.

Information Technology companies can be affected by rapid product obsolescence, and intense industry competition. Risks include disruption in service caused by hardware or software failure; interruptions or delays in service by third-parties; security breaches involving certain private, sensitive, proprietary and confidential information managed and transmitted; and privacy concerns and laws, evolving Internet regulation and other foreign or domestic regulations that may limit or otherwise affect the operations. Healthcare, Genomics, Biotechnology and Medical Device companies can be affected by government regulations, expiring patents, rapid product obsolescence, and intense industry competition. CleanTech Companies typically face intense competition, short product lifecycles and potentially rapid product obsolescence. The risks related to investing social media companies include disruption in service caused by hardware or software failure, interruptions or delays in service by third-parties, security breaches involving certain private, sensitive, proprietary and confidential information managed and transmitted by social media companies, and privacy concerns and laws, evolving Internet regulation and other foreign or domestic regulations that may limit or otherwise affect the operations of such companies. These companies may be significantly affected by fluctuations in energy prices and in the supply and demand of renewable energy, tax incentives, subsidies and other governmental regulations and policies. There are additional risks associated with investing in lithium and the lithium mining industry.

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds’ summary or full prospectus, which may be obtained by calling 1.888.493.8631, or by visiting globalxetfs.com. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Beginning October 15, 2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. Prior to October 15, 2020, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times.

Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.