The Rise of Thematic ETFs

Thematic ETFs are capturing investors' imaginations. These tracker funds attracted record inflows in 2020 and there are a growing number of funds to choose from 

Kenneth Lamont 18 January, 2021 | 10:57AM

Thematic ETFs

Thematic ETFs in Europe emerged as one of the big winners in 2020 as eye-catching returns helped attract a record €9.5bn in net new assets across the year. These strong flows helped assets under management more than double from €8.2bn to an all-time high of €22.7bn.

So, what is a thematic ETF? Simply, it is a tracker fund which is designed to tap into a specific theme. This might be robotics or artificial intelligence, clean energy or even logistics. These passive funds are different to traditional ETFs because they don't simply mirror a stock market, but aim to capture the perform of a chosen trend or industry.

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About Author

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

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