MacroHive Conversation: How to Be a Successful Thematic Investor
With the rise of funds like ARK Innovation, thematic investing is becoming more popular The Tri-Polar World and Global Risk Nexus provide frameworks for investing thematically Currently, they suggest a 20% allocation to thematics which include investing in sectors like infrastructure, clean energy and crypto. Thematic investing is a hot topic. Bloomberg recently noted that thematic ETFs tripled assets over the past three years to $180bn and are now bigger than any sector ETF (Chart 1). And Bloomberg forecasts that thematic ETFs could double assets again to reach $500bn by 2025, becoming bigger than all US sector funds combined and highlighting the limits of legacy sectors and styles. But how might you invest thematically?