Thematic ETFs are ETFs designed to invest in multi decade mega trends. You may have heard the saying “instead of looking for the needle in the haystack, just buy the whole haystack“, well that’s what thematic ETFs do, they’re the haystack of companies for things like the AI boom, the energy transition, cyber security, medical advancements etc.
The recent AI boom has reignited enthusiasm for thematic ETFs and that’s why I was so grateful to have Scott Helftstein the head of investment strategy at Global X, join me on his Australian tour for a deep dive on thematic ETFs. Scott has a wealth of knowledge in the space through his role at Global X and previously being the head of thematic portfolios at Morgan Stanley.
In this conversation we cover:
- Scott’s upbringing in Long Island and his introduction to business through his father
- We explore how he developed a career in thematic investing
- How his team identify a theme that could be an enduring mega trend
- Walk through the life cycle of the trend
- Discuss how a thematic etf can adapt to include emerging companies in the future
- Discuss why he thinks AI and uranium are two multi-decade themes still in their infancy
- We also address the often mentioned performance of thematic ETFs vs passive traditional indices
Before recording this interview I reached out to the Rask Community on our community page to ask them what questions they would ask. If you have any thoughts you’d like to share after listening come and join us over at the Rask Community, it’s free to join.
this episode, you’ll LOVE our series. Episodes go live every Saturday at 7 am and Wednesday arvo.
