Introduction to thematic ETFs
In a previous article, I wrote about the
best performing ETFs which consistently outperform the S&P500 over the past decade. Not surprisingly, most of them are skewed towards technological plays with substantial exposure in tech heavyweights such as Apple, Microsoft, Facebook, Google, etc.
In this article, we will be exploring some of the best thematic ETFs to buy. The concept of thematic ETFs is not new and they have been growing in popularity for years. Lately, the focus has shifted to new-age technologies such as Robotics, AI, cloud computing as well as social causes including environmental protection.
I believe that thematic ETFs are here to stay and they will be increasingly sought after. These ETFs offer the benefits of diversification in a relatively low-cost structure. Unlike an index ETF which typically consists of 1000s of companies, thematic ETFs select roughly 30-50 names to partake in. That gives sizable exposure to each company. Sometimes, it pays to make a targeted bet....