ETF Weekender: Cathie Wood on Tesla Stake and BlackRock Eyes China Tech

(Bloomberg) -- Welcome to the ETF Weekender, your round-up of the biggest and most interesting stories from one of hottest corners of global markets.

In this week’s edition: Cathie Wood debates her big growth bet on Tesla with a legend of value investing, BlackRock wants its China crown back, and Invesco is getting serious about crypto.  

These are the stories you need to read.

Talking Tesla

What happened: Cathie Wood spelled out her views on Ark’s huge Tesla stake in an onstage session with quant legend Rob Arnott.

Why it matters: Wood is a famous bull on expensive stocks betting on the technologies of tomorrow. She waxed lyrical on the booming competitiveness of electric cars and what it would take to shift her bullish positioning. The comments with Arnott — whose value-investing philosophy could hardly be more different — came after Ark had trimmed its stake in Tesla.

Read it  here.

Chasing China

What happened: BlackRock is prepping a new exchange-traded fund investing in Chinese tech stocks.

Why it matters: Just weeks ago, BlackRock boasted the biggest China-focused ETF in the U.S. But it was overtaken by a more tech-oriented competitor that’s raking in cash as investors bid up the sector even in the grip of a government crackdown on multiple industries. Clearly, the biggest ETF issuer wants to tap some of that demand — and maybe even reclaim its crown.

Read it  here.

Crypto Combo

What happened: Invesco is partnering with Michael Novogratz’s Galaxy Digital Holdings to develop new crypto products.

Why it matters: This is Invesco doubling down on crypto ETFs before the first U.S. product has even been approved. The firm is one of at least a dozen issuers with applications to launch such funds as investor demand balloons. The head of Invesco’s ETF business says the crypto industry reminds him of the early days of the passive market. 

Read it  here.

Want more? Bonus weekend reading

• Nancy Davis Flips to Deflation in New ETF After $3 Billion Haul.
• AI Fund Slashes Stock Bets and Piles Into Tech to Ride S&P Swoon.
• Trader Spent $50 Million on Options Betting on S&P 500 Rally.
• Shipping ETF Up 275% Gets a Sibling Looking to  Clean Up Its Mess.
• So Many Stocks Are Joining Russell Indexes They Got One Wrong.

Good Intel: Good Flows

A glimpse at the Bloomberg Intelligence analysis available on the terminal.

ESG ETF momentum is on. After product launches and inflows tripled over the past two years, ESG ETF flows in the first half of 2021 amounted to 80% of the sector's total last year which itself was a record. The expansion of Europe's ESG products may serve as a barometer for what to expect globally: The region's ESG mutual funds and ETFs accounted for about 25% of all European products in 2020, with funds rebranding as ESG contributing to a third of the growth. We expect ESG funds in Europe to double their market share, with rebranded products making up half by 2025.

Fund Jeopardy! 

This fund, which just got its first sibling, has turned out to be a smash-hit success, garnering well over $3 billion in assets (above) despite a relatively high 0.99% expense ratio. That’s especially impressive considering 89% is invested in a single, much cheaper vehicle.

That’s the answer. The question identifying this fund will appear in the next edition. Last week’s question: What is the Global X Uranium ETF, ticker URA?

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