Thematic investing continues to increasingly gather investors’ attention. A Bloomberg Intelligence (BI) report also recently highlighted this investment genre’s growing popularity.
The report highlights that this kind of investing is witnessing growing popularity among retail and younger investors. Notably, thematic ETFs do not invest in an entire market or single sector but rather in concepts, themes or trends. They allow investors to park their money in innovative industries and technologies as well as smaller companies that traditional GICS sectors do not include, per the same BI report.
The BI report also estimates that thematic ETFs ‘could become a $300 billion category in five years.’ The report also highlights the latest research from Brown Brothers Harriman among 382 advisers, institutions and fund managers, which demonstrates that about 80% aim to raise allocations to theme ETFs over the next year.
In this regard, BI Senior ETF Analyst Eric Balchunas has said that “theme ETFs have taken in more money over the past three years than all other sector ETFs combined. The recent…
