What makes Thematic Investing such a hot trend?

On November 8th, we at eToro had launched our next generation investment product – CopyFunds™. This was our official breakthrough into the world of investing in general and Thematic Investing in particular. So let’s go over and see what makes Thematic Investing such an interesting concept.

 

Part 1: What makes an investment ‘Thematic’?

Say you managed to save a reasonable amount of money and you wish to invest it for a year or more. A friend told you, or you read somewhere that ‘gaming’ will get bigger than ever in the future, and now you are left pondering. How can one invest in gaming as a trend? And how can you protect your hard earned funds from being wiped out, if that trend dies down? Enter Thematic Investing.

 

As we established already – you are a long term, low risk investor who wishes to invest in gaming. So instead of investing in the biggest gaming company out there, you diversify your investment across the entire sector. Essentially, creating a size-able portfolio with EA, Ubisoft, AMD, Sony, Microsoft and more – dozens of companies in one portfolio.

Now, your investment has a twofold advantage: If you caught the trend on the way up, you’ll be enjoying the profits of every company in the sector, if you included it in your portfolio, of course; And if one of the companies you invested in fails, you are well diversified across the entire field and enjoying the combined performance of all included companies. The importance of diversification was stated by the one and only Warren Buffet, who said “Never test the depth of a river with both feet”. Think about it, that’s good logic.

 

Part 2: What happens when Thematic Investing meets social trading?

Much like the electric engine is the evolutionary step forward from the internal combustion engine, we have evolved Thematic Investing by adding our own cutting-edge technologies: Our award winning CopyTrader™ technology allows the creation of Thematic Investment instruments that are made of people; and our privately developed, profit-seeking, machine learning algorithms, are sifting through billions of data fragments in order to try and predict which asset or person will create a profit in the future.

 

Part 3: Market CopyFunds and Top Trader CopyFunds

 

We have developed two types of CopyFunds that combine the best features of Thematic Investing and social trading: Market CopyFunds which bundle together groups of assets according to different market strategies – Like the BigTech CopyFund, which comprises leading companies from the technology sector, and Top Trader CopyFunds which comprise the best performing and most sustainable traders on eToro.

 

Feel free to learn more to learn more about CopyFunds in our blogs, or create an account and invest in one, today.

 

>>Explore the CopyFunds<<

 

*All trading involves risk. Only risk capital you’re prepared to lose & Past performance does not guarantee future results.

*This post is intended for educational purposes only, and shouldn’t be considered investment advice.