Renewable energy has become the top investment sector for UK investors with almost a third (30 per cent) regarding it as the sector they would actively put their money into for long term gain, according to a survey by ETF provider GraniteShares.With UN Secretary-General Antonio Gutterres warning that climate change is about to reach a point of no return – and with Boris Johnson and Nigel Farage empty-chaired for Channel 4’s recent climate change debate – new research from GraniteShares suggests the green agenda is gripping the UK investor community. Renewable energy is now a top investment choice for investors of all ages; it is equally popular with men (29 per cent) and women (31 per cent) and it also transcends investment philosophy. For example, active traders, those that are simply looking to make an opportune gain, place as much emphasis on renewables as those investors that act with a specific ethical investment philosophy (33 per cent and 36 per cent respectively).At a time when the general election and protracted Brexit delays are casting a cloud of uncertainty over what lies ahead in 2020, GraniteShares research suggests economic and political events have powered a greater sense of conviction among investors, with 76 per cent seeing clear investment opportunities to capitalise on. Further, more than a third of UK investors (37 per cent) identified as being in control of their investment decisions, acting with conviction. Given this UK appetite to amplify their investment edge, GraniteShares asked a nationally representative sample of 1,560 UK investors which sectors they would put their money into if they were looking to make a long-term gain over the next year. After renewables, the most popular sectors were technology (28 per cent), property (25 per cent), and gold (22 per cent). Technology was most popular with younger investors aged 25-34 (31 per cent), whereas property was most popular with the over 55s (33 per cent). Gold was evenly popular across all age groups, a top choice with around one in five investors.In addition, pharmaceuticals and biotechnology were particularly popular with over 55s (36 per cent and 23 per cent respectively), cannabis was most popular among the over 40s (20 per cent) and oil and gas was top choice among the 25-34s (17 per cent).
With recent warnings that UK car production could plummet with a non-deal Brexit and bleak warmings of the health of the high street for the crucial Christmas season, retail (8 per cent) and auto (7 per cent) along with industrials were the sectors that investors were least interested in putting their money into. With all these sectors, it was older investors (over 45) that were walking away and investing their money elsewhere.
Will Rhind, Founder and CEO at GraniteShares, says: “Despite the context of unprecedented market uncertainty in the UK at the moment, it is positive to see so many investors taking conviction views for the year ahead. The rising popularity of tech brands we expect to continue and the focus on renewable energy reflects concern over one of the biggest issues that the planet faces today.“At a time when it has become statistically harder and harder to actually make money in the markets and outperform, more investors are looking at new sectors and also individual brands when it comes to investment planning. For many sophisticated investors, there is also a serious opportunity to balance the long-term with the short-term. GraniteShares’ new platform of short and leveraged single stock daily ETPs, for the first time, enables sophisticated investors to take positions on both rising and falling share prices and to express very focused views, both long and short, on popular UK single stocks through ETPs.”
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