FAQs About Thematic Investing
Thematic investing is a popular strategy for selecting investment targets likely to yield above-market returns in the long run. Many investors hold back from choosing the strategy as they are uncertain of the concepts and terminology it involves. Here is a guide to some of the most frequently-asked questions about thematic investing. What are Thematic […]
A Systematic Approach To Thematic Investing
Thematic investing is an approach that involves investing in a specific idea, trend or theme that is expected to benefit from economic or societal changes. A systematic approach to thematic investing involves following a set of rules and procedures to ensure a disciplined and consistent approach to selecting and investing in themes. This approach aims […]
Build Your Thematic Investing Knowledge
You may have heard the term ‘thematic investing’ being thrown around by business associates, family members or wealth advisors, but how much do you know about it? Thematic investing can be a very rewarding approach to building and protecting your wealth, provided you have a good understanding of the concepts and practices that drive it. […]
Disadvantages Of Thematic Investing
Thematic investing is widely regarded as an exciting, potentially very lucrative investment approach. However, it is not without its critics. The skeptical observations that some investors and fund managers make about thematic investing certainly have merit, and should be taken into account by those who choose to use this strategy. By being careful to avoid […]
Advantages Of Thematic Investing
Thematic investing offers several potential advantages to the investor that other investment approaches do not. With thematic investing, one can invest in long-term trends and themes of particular interest. It is more concentrated than asset class or sector-based investing, allowing an investor to focus closely on the desired exposure. While factor investing is historically based, […]
Comparing Thematic Investing With Other Forms Of Investing
Thematic investing does have a lot in common with other approaches, particularly sector investing. The difference lies mainly in what the investor chooses to focus on. For example, thematic investing is often conflated with sector investing, but the two strategies actually approach the markets at different levels. How Does Sector Investing Compare To Thematic Investing? […]
How has COVID-19 affected thematic investing?
[vc_row css=”%7B%22default%22%3A%7B%22margin-top%22%3A%220%22%2C%22padding-top%22%3A%220%22%7D%7D”][vc_column][vc_column_text]Covid-19 has affected every area of the international economy. As the consequences of the pandemic continue to be felt in every sector of the global environment, one may well ask – what is COVID-19’s effect on thematic investing? In addition to disrupting themes that investors had been tracking for a long time before the […]
What is a thematic index
[vc_row css=”%7B%22default%22%3A%7B%22margin-top%22%3A%220%22%2C%22padding-top%22%3A%220%22%7D%7D”][vc_column][vc_column_text]When investment managers devise strategies for global thematic investment, they use the information they have gathered from investigating megatrends to create a thematic index. Thematic indexes are important tools in global thematic investing – but what exactly are they? A thematic index is an investment index that tracks the performance of companies that are […]
A systematic approach to thematic investing
To create a successful thematic index, wealth managers and investors must take a systematic approach to thematic investing. They start by identifying a theme that shows excellent growth potential. They then build a clear and precise expression of this theme to capture all the associated trends. Next, they search for specific business activities that incorporate […]
