BetaShares looks to future with new ETFs

BetaShares recently listed the Electric Vehicles and Future Mobility ETF (DRIV) and our Future of Payments ETF (IPAY). BetaShares director - adviser business, Alex Holmes, explains why it was important to offer these products to market at this time.

Why was it important to launch these two ETFs - Electric Vehicles and Future Mobility ETF (DRIV) and our Future of Payments ETF (IPAY)?

Both our Electric Vehicles and Future Mobility ETF (DRIV) and our Future of Payments ETF (IPAY) offer investors exposure to long term megatrends that are changing the way people travel and how they pay for goods and services. As part of a diversified portfolio, these ETFs offer investors access to the megatrends of tomorrow which are anticipated to have decades of growth ahead. Additionally, both megatrends are still relatively early on in their user adoption. Each ETF invests in a diversified portfolio of companies which are at the forefront of automotive and payments technologies, respectively. These two ETFs are part of our leading suite of thematic funds that provide investors with the tools to gain exposure to exciting megatrends in their portfolio.

Has there been demand from the market to-date? 

Both our DRIV and IPAY ETFs have been warmly received by investors since launching on the ASX in late December 2021. We expect continued strong adoption of both ETFs across client portfolios in 2022 and beyond.

What kind of background market research did you do?

BetaShares has a long track record of bringing innovative products to market which are designed to meet demand from investors.

Betashares spent a considerable amount of time researching the market structure and key participants in the automotive technology industry and digital payments eco system to provide 'pure play' exposure to companies that have attractive potential to monetise these growing themes.

 
Are they the only ETFs like this in Australia?

While there are other ETFs that provide some exposure to these thematics both DRIV and IPAY are the first 'pure play' of their kind in Australia and offer investors exposure to the disruptive megatrends in mobility and payments via a convenient, transparent and cost-effective ETF structure.

Did it take long to get them off the ground?

Given our track record, the launch process was relatively smooth given our strong relationships with our partners. 
We spend considerable time understanding and researching the market dynamics, theme and key players in the competitive landscape. Our objective being to provide a pure exposure to the theme while reducing stock specific risk to the greatest degree possible.