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ETFs and funds: is it worth investing in megatrends?

VIDEO - The new tutorial by SalvaDenaro.com explains how and why it can be interesting to invest in macro-trends that have a strong impact on social change

ETFs and funds: is it worth investing in megatrends?

I megatrend they offer a range of investment opportunities, but not many savers know what they are. As he explains SalvaDenaro.com in its latest video-turorial, by megatrends we mean all of them the macro-trends that have a strong impact on the evolution of society, the economy, culture and business. The changes in these fields also bring with them some modifications in the approach to investments.

“If until now we were looking for the most promising sectors and geographical areas - explains Vincenzo Saccente, head of sales for Lyxor ETFs in Italy - today, to have a portfolio in step with the times, we need to adopt an innovative approach, i.e. invest in the drivers of change choosing the megatrends”.

According to the analyst, the main megatrends today are as follows:

  • smart city and smart infrastructure;
  • new technologies such as cloud and big data;
  • last generation connection networks;
  • computer security;
  • robotics;
  • treatment and prevention in healthcare;
  • population ageing;
  • industrial automation green;
  • clean energy production.

Investing in megatrends "means focusing on companies operating in sectors that contribute to changing the future - continues Saccente - Since these are innovative companies, it is presumable that these companies can have a strong development over the years, therefore they can represent an interesting investment".

But how can you invest in megatrends? The main tools are two:

  • active funds;
  • And F, i.e. instruments listed on the Stock Exchange which replicate the performance of indices.

Saccente, who sells ETFs, explains that these instruments are particularly "liquid and allow for high diversification, because with a single ETF you invest in a large number of companies".

Here are the megatrends identified by Lyxor for its ETFs:

  • smart cities;
  • digitaleconomy;
  • transport of the future;
  • innovative technology;
  • millennials (the ETF therefore includes companies "in tune with the mentality, tastes, priorities and aspirations of those born after 1980", concludes Saccente).

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