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Highlights
ETFs provide investors with diversification benefits at low costs.
The Australian ETF industry has grown rapidly in the past decade.
There was an inflow of AU$1.3 billion in the Australian ETF industry in May.
Exchange traded funds (ETFs) are among the most sought-after investments globally as these provide investors with diversification benefits at low costs. The Australian ETF industry has grown rapidly in the past decade. While assets under management (AUM) in this industry fell more than 1.5% month on month, in May, ETFs continue to be in demand among investors. There was an inflow of AU$1.3 billion in the Australian industry in May.
On this note, let’s discuss how these two ASX-listed green ETFs have performed on a year-to-date (YTD) basis.
BetaShares Climate Change Innovation ETF (ASX:ERTH)
BetaShares Climate Change Innovation ETF provides exposure to a diversified portfolio of global companies leading the fight against climate change.
According to the company, the ETF tracks the performance of an index that comprises a portfolio of up to 100 leading global companies that “derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions.”
The fund invests in sectors such as clean energy, electric vehicles, energy-efficiency technologies, energy storage, sustainable food, water efficiency and pollution control. Eaton, American Water Works, Cie De Saint-Gobain, Trane Technologies, Ecolab, Vestas Wind Systems, Infineon Technologies, Tesla, Samsung, and Zoom Video Communications are among the leading names which are part of the fund.
BetaShares Climate Change Innovation ETF has an annual management fee of 0.65%. The fund is down over 28% on a YTD basis.
ETFS Battery Tech & Lithium ETF (ASX:ACDC)
ETFS Battery Tech & Lithium ETF is focussed on battery technology and lithium mining.
According to ETFSecurities, “ETFS Battery Tech & Lithium ETF offers investors exposure to the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining. Demand for energy storage is being driven by the movement towards emissions reduction and renewable energy.”
The fund’s portfolio has 30 names including BYD, Allkem, TDK, Mineral Resources, LG Energy Solution, Renault, Livent and NGK Insulators.
The annual management fee of this ETF is 0.69%. It has given a negative YTD return of nearly 19%.
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