Should You Buy a Thematic ETF?

Thematic and niche ETF offerings are built on a good story, but will their plots continue developing to ensure an enduring and successful investment tale?

Emma Rapaport 7 August, 2019 | 11:15AM

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Thematic or flavour-of-the-moment ETFs have soared in popularity and their appeal is easy to understand. You can get an exchange-traded fund to tap into the robotics revolution, another for getting exposure to rapid urbanisation and even one designed to find businesses benefiting from millennials. 

Unlike traditional ETFs, which are low-cost and focus on a broad market, thematic ETFs seek to capitalise on emerging – and, their promoters hope, lucrative – trends. Think environmental change, demographic shifts, or technological advances. They are often unconstrained by traditional sector and size groupings.

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About Author

Emma Rapaport  is a reporter for Morningstar.com.au

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