New trend among ETF investors

I used to write about ETFs that track „socially responsible” companies. Currently, more and more similar instruments are being created, among which the most popular are funds replicating the behavior of ESG indexes. Now it’s worth asking a question, what does ESG mean? E stands for ecology, so only companies that care about the environment can be included in this index. S stands for „socially responsible” – only companies that respect employees’ rights and support local communities can be included in the index. G stands for „corporate governance” In terms of analysis, the following factors remain as follows: The structure of the company’s board, respecting shareholders’ rights, respecting information obligations towards all shareholders, decision-making independence and managerial skills.

The growing demand for this ETF was answered by Nuveen, which released five such instruments: NuShares ESG Large-Cap Value ETF (BATS: NULV), NuShares ESG Large-Cap Growth ETF (BATS: NULG), NuShares ESG Mid-Cap Value ETF (BATS: NUMV), NuShares ESG Mid-Cap Growth ETF (BATS: NUMG) and NuShares ESG Small-Cap ETF (BATS: NUSC).


If you find these conceptions important, it might be wise considering including one of these ETFs in your portfolio. Now, I encourage you to take a look at the table presenting performance of five Nuveen’s ETFs.



Source: Capital Lab



Is it possible to make legal money from marijuana?

Even though more and more countries, and in the US states, legalizes whether it is a medical or recreational marijuana, this topic in Poland is still controversial. However, this article is not intended to raise the debate on the legalization of marijuana in Poland, but only to draw attention to the enormous investment potential of companies dealing in the cultivation and distribution of cannabis and its derivatives.

Until now, there was only one ETF tracking companies related to the production of marijuana – Horizons Marijuana Life Sciences ETF. Unfortunately, it can only be traded on the Toronto Stock Exchange. However, the results are so good that the new ETFMG Alternative Agroscience ETF will be launched this month. Before I turn to the results of the first of these funds, a handful of facts. At present, in the 29 states and in the District of Columbia, a medical marijuana has been legalized, and in the eight states and D.C., you can buy recreational marijuana. In California alone, medical marijuana’s tax revenues are up to $ 50 million a year, in Colorado 163 million (recreational marijuana is legal here as well). Only in the United States alone it is predicted that the market value will exceed $ 21 billion in 2021.

Horizons Marijuana Life Sciences ETF has grown from its debut in April to 44% and does not seem to slow down. Taking into account that more and more states are deliberating marijuana legalization, it is worth considering investing in this instrument or its „younger brother”, which is expected to debut this month.


Source: Morningstar



Crude oil is back!

During last few days we were witnessing the rise of crude oil prices. This is the consequence of tensions in Saudi Arabia and between Saudi Arabia and Iran. On Monday, Saudi police arrested 11 princes and 38 former ministers accused of corruption. Moreover, on Saturday, from Yemen territory controlled by Iran-backed rebels, a missile was fired toward Riyadh, which was intercepted and destroyed by Saudi forces. „Saudi Arabia considers an unsuccessful ballistic missile attack on Riyadh International Airport as an act of war by Iran.” Saudi Foreign Minister Adil al-Jubeir told CNN. The Minister, referring to Article 51. Of The UN Charter, which allows states to self-defend when they experience armed assault, reserves the right to take „appropriate” steps against Iran.

crude oil

Source: NASDAQ


As you can see in the chart above, oil prices over the past month have grown quite fast, and given that the Riyadh-Tehran conflict will be getting bigger, we can expect a further rise in oil prices. In addition, even If we assume the peaceful settlement of the dispute, issue of Yemen remains. Solving the conflicts of Arab Peninsula can take a long time, so the price of oil will probably continue to grow (remember Saudi Arabia is one of the most key members of OPEC). What does this mean for investors? An opportunity to invest in ETFs tracking companies involved in the production of crude oil and its derivatives.

The United States Oil Fund LP has grown over 9% over the past month, but its share price is still lower than it was at the beginning of the year. The same is true for other ETFs following the oil market but it is expected that they will reach a higher price by the end of the year than they did in January 2017. It is worth considering investing in one of the ETFs from table below before their prices start to grow rapidly.



Capital Lab



Indian ETFs are booming

India is currently the third largest economy in Asia and is set to grow by 7.5% in the 2017 to 2018 period, mostly due to government changes regarding economic policy. The two largest ETFs by assets tracking the Indian economy are at present up by 26% year-to-date.

Market data suggest that local investors are rushing into Indian stocks this year. Additionally, the government is putting pressure on various pension plans to increase their exposure to equities. What does this mean exactly? Indian ETFs are expected to grow even more, thus making it a great opportunity to invest in them.

Moreover, according to Bloomberg’s report, “Investors pumped 189 billion rupees ($2.9 billion) into the funds in September, after pouring a record 203 billion rupees in August, data from the Association of Mutual Funds in India show. The 804 billion rupees of net inflows in the first six months of the year that began April 1 is more than triple compared with the year-earlier period.”

Indian ETFs have a dynamism matching that of the domestic economy, and they may therefore be a fantastic addition to our portfolio no matter what kind of fund we are in need of. So, as always, we present a table with the best performing Indian ETFs at this point in time.


Data: Capital Lab