Megatrends are major global changes than can impact the economy, ASX companies and the world.
Examples over time include electricity and the internet. But right now, there are new megatrends at play.
Let’s take a look at what they are and which ASX shares could be impacted?
Five megatrends identified in a recent Livewire article include battery minerals, decarbonisation, automation, digital currencies and the ageing population.
Speaking to the publication, Felicity Thomas from Shaw and Partners recommended ETFS Battery Technology and Lithium ETF (ASX: ACDC) as a way to get exposure in the battery minerals space. She cited the Biden administration’s investment in electric vehicles (EV).
For me, this is a buy. I really like future-facing commodities and ACDC is a way to get diversified exposure to that kind of theme. The US has also created a 50% electrification target, so I think there’s going to be a push there.
However, Pivot Wealth founder Ben Nash had a different take on this fund, suggesting investors sell it. He said, “I think if you look at the performance of this ETF relative to the market and relative to commodity prices over the period, it probably doesn’t seem to be lining up for me.”
The ETFS Battery Tech and Lithium ETF has fallen nearly 15% year to date.
Looking at decarbonisation, Thomas recommends VanEck Global Clean Energy ETF (ASX: CLNE). She again cited the United States investment in green technology, adding:
For me, CLNE is a buy. It’s the only ETF that is actually a pure-play green energy ETF. So I think it’s quite unique and I believe that the US last year spent a lot of money on climate change, so I think it’s going to come into its own.
However, Nash again had a different take, rating this ETF as a sell:
I think it is extremely niche, and while I do believe in the theme and that the space will grow over time, for me, the lack of diversification just suggests a bit more volatility for investors.
VanEck Global Clean Energy ETF has dropped nearly 13% year to date.
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