Thematic Investing: Riding the Wave of Structural Change

Model Portfolio Masterclass Series

The evolution of thematic investing using ETFs tells a story of financial innovation, market responsiveness, and the shifting preferences of modern investors. For Wealth Managers and Financial Advisors, this approach represents an opportunity to deliver portfolios aligned with transformative global trends, offering clients a strategic way to capitalize on long-term structural changes.

This episode explores how thematic ETFs emerged as a significant departure from traditional market-cap-weighted funds, gaining traction by targeting sectors like technology, healthcare, and clean energy. We’ll uncover how these ETFs evolved to reflect societal and technological megatrends, such as artificial intelligence, robotics, and renewable energy, becoming an integral tool for aligning portfolios with emerging opportunities.

But the rise of thematic ETFs is not without its challenges. Concentration risks, valuation complexities, and the need for informed diversification make active management crucial. For Wealth Managers, this means developing strategic foresight, managing risk exposure, and educating clients on both the potential and the volatility of these investments.

In this episode, we’ll guide you through:

• The historical evolution and growing popularity of thematic ETFs.

• Strategies to balance concentration risks with diversification.

• How to integrate thematic ETFs into a Core/Satellite portfolio model.

• The role of thematic ETFs in delivering exceptional client outcomes.

Join us as we explore how thematic investing has become a cornerstone of modern portfolio construction, and discover how to leverage these powerful tools to reshape your value proposition and provide clients with access to the next wave of global opportunities.