THEMATIC INVESTING
WITH ETFS

Investing is all about finding the right opportunity to grow your money and in a rapidly changing world it can pay – literally – to take advantage of emerging trends. 

Let’s dive into thematic investing with ETFs.

Thematic investing helps allow you to tap into long-term trends and  emerging opportunities.

Through thematic ETF investing you can get all of the benefits of investing in specific technologies and trends without the risk associated with individual stocks. 

But first, what exactly is thematic investing?

Like the name suggests, it involves investing in companies that are part of a specific theme or trend.

Examples of themes include technological innovation, infrastructure and renewable energy.

There are many other options out there. 

You can often discover new themes by looking at demographic shifts and global events.

Thematic investing helps you to align your Investments with your personal beliefs, interests,and values, and potentially benefit from growth in that trend. 

Let’s say you’re feeling optimistic about the future of electric cars.

You could gain exposure to the electric car companies themselves and the cross-sector companies benefiting from the rise of electric vehicles, like car parts manufacturers or transport companies, by investing in an EV ETF.

Thematic investing can also help you diversify your overall portfolio and reduce risk by investing your money across different sectors and industries.

If you’re like me, you probably wish you had bought certain tech stocks 20 years ago, but finding a unicorn company is like finding a diamond in the rough, as you could pick the right theme but choose the wrong company.

Now that you understand what thematic investing is let’s break down how to actually do it.

There are several ways to invest thematically:

One way is to buy individual stocks that fit the theme you’re interested in. 

Another way is to invest in thematic ETFs, which provide exposure to a basket of companies that may align with your theme.

While you have greater control over your investments when investing in individual stocks, it requires extensive research time and effort.

Thematic ETFs offer the advantage of gaining exposure to an entire theme through a single investment.

Additionally, for those who lack the expertise or time for in-depth research, investing in thematic ETFs can eliminate the need for extensive individual research.

Plus, investing in ETFs can help reduce the risk often associated with investing in a single stock, and the good news is that there are many ETFs available covering many of the themes you may be interested in.

Ready to embark on your thematic investing journey?

With many ETFs out there, there are plenty of options to choose from.

It’s important to do your research and find ETFs that align with your investment goals and risk tolerance.

If you want to give thematic ETFs a test drive, you can get started with Toro’s virtual portfolio.

Thanks for joining our ETF course – we hope you learn something that can help you become a better investor.

eToro encourages its customers to carefully consider the funds’ investment objectives, risks, and charges and expenses carefully before investing. This and other information can be found in the funds’ prospectuses or, if available, the summary prospectuses which may be obtained by visiting each fund company’s website or www.sec.gov/edgar/search. For iShares funds please visit www.iShares.com/prospectus. Read the prospectuses carefully before investing.