Watch Out for Investment Biases in Thematic ETFs

Despite their rise in popularity there remain questions about how to evaluate and integrate thematic ETFs

Kenneth Lamont 20 December, 2018 | 7:25AM

robotics artificial intelligence exchange traded funds

Artificial intelligence, orphan drugs and battery value-chain are just some of the attention-grabbing themes tracked by exchange-traded funds launched already this year. These new entrants join established thematic funds such as robotics and water strategies. Despite their rise in popularity there remain questions about how to evaluate and integrate these products into an existing portfolio.

What are Thematic ETFs?

Thematic ETFs select listed companies based on their exposure to long-term environmental, technological or social trends.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares Ageing Population ETF USD Acc6.12 USD0.49
L&G Pharma Breakthrough ETF10.90 USD-3.29
Lyxor Global Gender Eqlty (DR) ETF C USD11.52 USD1.77

About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

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