The megatrends in ETFs in 2022: demographics, technology, urbanism and sustainability | Additional features

Investment in ETFs during 2022 will be linked to six megatrends that will mark investor preferences. Specifically, these are climate change, demographics, economic power shift, technological advance, sustainability and rapid urbanization. This was revealed during the XTB Investing Trends event, the investment forum organized by the XTB broker and which brought together representatives of some of the largest managers worldwide, such as JP Morgan, BlackRock, Amundi, Xtrackers and Nextep Finance.

In this regard, André Themudo, head of BlackRock Iberia’s distribution business, explained that “megatrends are long-term transformative forces that influence the future of our economy and society” and anticipated that climate change and resource scarcity , demographics and social change, the change in economic power, rapid urbanization and technological progress will be what will mark the investment in this product during this year.

For his part, Juan San Pío, commercial director of Amundi ETF, Indexing & Smart Beta for Iberia and Latin America, stated that, precisely, one of the strengths of ETFs is that they allow investment in megatrends. “And it also allows us to do it efficiently and cheaply. The difficult thing is to choose and determine which of those trends will be the most profitable in the coming months, ”he clarified. He further explained that there is growing concern among investors about sustainable investing, especially since the pandemic.

Long-term US debt, energy, gold, blockchain and exposure to the stock market through a world index, in Pablo Gil’s (XTB) model portfolio for this year

Precisely, the Listed Investment Funds are the financial instrument that will lead the investment during this year 2022, a product that, since its creation in the seventies, has not stopped growing and already represents more than 50% of the total investment in United States.

“The main advantage of ETFs is their flexibility, since they can be adjusted to all types of profiles and time horizons. Much of the popularity of ETFs comes from their ability to replicate geographic indices for the benefit of investors who know that beating the market is very difficult. In the last 15 years, only 8% of investment funds have managed to exceed the return of their reference index, while the costs are much lower”, explained Joaquín Robles, XTB analyst during his speech. And he continued: “Also, in the last 10-20 years the historical return of ETFs has remained at 6% and it is this stability that attracts so much attention for this type of product.”

In this sense, André Themudo provided specific data: “ETFs grow at rates of 20%, while actively managed funds grow at approximately 4%. In the last 12 years we have seen an exponential growth of ETFs and among the factors of this growth are their easy access, replication, diversification, low cost, transparency and liquidity”, he explained.

Themudo explained that there is a myth in the market that ETFs cover too much in the total investment and it can be a problem in the future. “I’m going to demystify this. Currently, if we add up all the listed Equity securities, we have a figure of more than 120 billion dollars. In exchange, the weight of the ETFs is 7.9 trillion, 6%. Something similar happens in Fixed Income. Of a total of 123 trillion dollars, the exposure of the ETFs that cover Fixed Income markets is 1.8 trillion, 1.5%”.

Guide to investing in exchange-traded funds

  • ETFs offer flexibility, efficiency, liquidity, diversification, transparency and cost efficiency. They are the perfect instrument for savers, since they allow long-term investment to be maintained in a diversified way and without managerial risks. They are also suitable for any investment strategy.
  • This transparency allows you to see the entire composition of the entire ETF on a daily basis, which you cannot do with a fund.
  • ETFs are the ideal investment vehicle, since they do not require exhaustive knowledge when selecting companies that replicate benchmark indices, which facilitates the investment decision and removes risk when selecting these companies. And platforms such as XTB facilitate the operation of the product.
  • Over the last 10-20 years, the historical return on ETFs has hovered around 6%. And it is this stability that attracts so much attention for this type of product. And they cost 10% less than other products. In addition, with brokers like XTB there is no commission and it adapts to all investor profiles.
  • ETFs are funds 3.0. They have all the advantages of investment funds, but without their drawbacks. They reach where traditional funds do not.
  • There are more than 1,000 different ETFs.
  • The most suitable ETF for the long term is the S&P 500, the most traded asset in the world. It brings together 60% of equities globally and has offered a 6% annual return for the last 40 years.
  • The main advantage that an ETF offers to a young investor, who invests for 40 years or even thinking about retirement, is its low cost.
  • ETFs replicate any investment idea that you think will work. Before, only currencies and indices were replicated, but now you can replicate specific segments, sectors, geographical areas with certain countries or type of investment value-growth. It can be hedged or used as a hedge for a traditional stock portfolio. In short, it is a very versatile instrument, with very low costs and that allows you to do what professionals used to do with individuals: take your money to very specific investments spread all over the world.
  • ETFs are a good way to encourage savings and investment in Spain.

The event organized by XTB, one of the most recognized, safe and competitive online brokers in the world, also featured the intervention of Lorena Martínez-Olivares, Executive Director at JP Morgan, who also spoke about the growth of investment in ETFs, alleging that “ Spain is a conservative market and the ETF is one more tool that allows agility, transparency and a more practical investment. And at a time like this of great volatility, ETFs are a key element in the configuration of a portfolio, ”she said.

For his part, César Muro Esteban, Head of Sales at Xtrackers Spain and Portugal, responded to the question of why investment in ETFs is growing so much, clarifying that it is because “everyone wants results”. “And the ETF is very effective, efficient and convenient. It is characterized by its cost efficiency. We know how to control costs. However, future performance is uncertain and cannot be controlled by us. And the efficiency that an ETF gives you is highly valued by investors.”

Asked about his opinion on a long-term positioned strategy in raw materials, Muro was clear: “You have to have it, because when there are spikes in inflation it is the only one that compensates you and it is one of the assets that works much better” .

Another topic discussed during the meeting in relation to ETFs was taxation. In this sense, Víctor Alvargonzález, from Nextep Finance, stated: “ETFs are an almost perfect investment vehicle. They allow you to go where traditional funds do not, with all its advantages, but without its drawbacks. And at a time of inflation like the current one, investing in a product that measures or moves based on inflation expectations can only be done with ETFs. And also with coverage.

There is only one drawback. And there is in Spain, which is where they play with a fiscal disadvantage because the Treasury does not consider it an investment fund. But would you have stopped investing in companies like Apple, Amazon or Microsoft because you had to pay taxes when you sold the shares? ”, He defended.

XTB model wallets

After these interventions, Pablo Gil, chief strategist of XTB, presented the Model Portfolio of ETFs for 2022 of XTB, made up of 5 ETFs. The first of these is the iShares Core MSCI World UCITS ETF, an exchange-traded fund that seeks to replicate the performance of the MSCI World index, which includes companies from developed countries and omits shares from emerging markets and which has a weight of 30% in the index. entire portfolio. The second, also weighing 30%, is the iShares USD Treasury Bond 20+yr UCITS ETF, whose investment objective is to offer investors the sum of two components: the change in the price of the asset and the return obtained by the collection of coupons on United States Treasury bonds over 20 years.

In third place, and with a weight of 20%, stands out the iShares Physical Gold ETC, an ETF that invests in physical gold of the best quality, obtained in a responsible way. In fourth place is the Invesco Elwood Global Blockchain UCITS ETF, an ETF that represents 10% of the total and offers exposure to international companies from developed and emerging markets that participate in the blockchain ecosystem or blockchain. Finally, and also representing 10%, the X Trackers MSCI World Energy UCITS ETF stands out, which allows investors to position themselves in companies in the energy sector at a global level.

XTB has over 200 ETFs that can be contracted without paying commissions for the first 100,000 euros of negotiation each month.

About XTB

The XTB Group is one of the largest Derivatives (CFD), Stock and ETF brokers in the world listed on the Stock Exchange. The XTB Group has entities regulated by the largest supervisory authorities in the world, such as the FCA, CNMV, BaFin, AMF, CySEC or KNF among others. With more than 16 years of experience, the XTB Group provides retail and institutional investors instant access to hundreds of global markets. XTB is a company fintech based on trust, technology and customer support.

Since 2004, the XTB Group has expanded to 12 markets in Europe, Latin America and Asia, attracting more than 352,000 Clients. In 2021, it received licenses to operate in the United Arab Emirates and South Africa. Through its own and multi-award winning xStation and xStation Mobile platforms, it offers more than 5,400 financial instruments, including Stocks, ETFs and Derivatives (CFDs on currencies, indices, commodities, stocks, ETFs and cryptocurrencies). Through X-Open Hub, XTB provides the best technology for financial institutions around the world offering services to institutional clients. More information in

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