How to Know If Thematic Investing Is for You and Start the Right Way

Riding the Thematic Investing Trend: Is It Right for You?

In recent years, Thematic Investing has become one of the most popular strategies among new-generation investors. It’s more than just picking individual stocks—it’s about investing in big ideas or major economic shifts that are shaping the future, such as AI, clean energy, or the digital economy.

But the real question is… who is Thematic Investing actually for? And how can beginners get started?

What Is Thematic Investing?

Thematic Investing is a portfolio strategy that focuses on investing in industries or businesses aligned with long-term global megatrends—commonly referred to as “themes.” These can include areas like artificial intelligence, clean energy, healthcare innovation, or demographic shifts such as an aging population.

What sets this approach apart is its top-down perspective. Instead of selecting individual stocks based solely on fundamentals, investors look at big-picture trends—major economic or societal changes—and invest in funds or ETFs specifically designed to capture those shifts.

In other words, Thematic Investing is about putting your money into stories of the future—themes with the potential to drive global growth and deliver medium- to long-term returns. It’s not confined by any single country, sector, or index, making it a flexible and forward-looking investment approach.

Learn more about this concept in the article: How to Choose the Right Theme for the Future.

Who Is Thematic Investing For?

Those Who Believe in Global Megatrends

If you're someone who sees potential in the future of AI, climate tech, or shifting global demographics, Thematic Investing could be the perfect fit. It allows you to get in early and align your investments with the transformational trends shaping the world.

Medium-to-Long-Term Growth Investors

Thematic Investing isn’t suited for short-term speculators. Big themes take time to develop—sometimes 5 to 10 years before showing significant returns. But if you’re focused on the long run and confident in the direction of the trend, this strategy is worth considering. ¹

Ready to build a portfolio based on the themes you believe in?

IUX opens the door to Thematic Investing for investors of all levels. Whether you’re just starting out or a seasoned pro, you can access world-class funds and ETFs aligned with the megatrends reshaping our future—from cutting-edge tech to the energy of tomorrow.

Start investing in the theme that speaks to you.
Sign up with IUX today and let global trends guide your portfolio toward long-term growth.

How to Start Thematic Investing: A Step-by-Step Guide

If you’re new to Thematic Investing, here are 4 simple steps to help you get started:

• Explore Themes That Resonate With You

Don’t just follow the hype—choose a theme because you understand it and believe in its long-term potential. Whether it’s AI, clean energy, or healthcare innovation, make sure it aligns with your vision of the future.

• Review Related Funds or ETFs

Look into which funds or ETFs are aligned with your chosen theme. Check what the fund focuses on, what sectors it invests in, and the total expense ratio (TER) to understand the cost.

• Assess the Risk

Thematic funds often carry higher volatility than traditional funds. That’s because they tend to invest in emerging technologies or small- to mid-cap stocks, which can be more sensitive to market fluctuations.

• Start With a Suitable Allocation

Consider using a Core-Satellite approach—allocate only 5–15% of your portfolio to thematic investments. This way, you can gain exposure to future trends without taking on too much risk. ²

Beginner-Friendly Investment Themes

• Healthcare – Invest in pharma, medical tech, and senior care.

• Clean Energy – Focus on solar, wind, and EVs.

• Aging Population – Target health and lifestyle products for seniors.

These themes are less volatile and align with long-term global trends—ideal for beginners.

Thematic Investing offers an exciting pathway for new-generation investors and those who want to align their portfolios with global megatrends—without needing to dive deep into individual stock analysis. Choosing a fund or ETF built around a theme you believe in is a solid first step toward building a long-term investment portfolio.

However, it's important to remember that not every theme will deliver strong returns right away. A theme that “looks promising” today might take years before its full potential shows in performance. That’s why proper diversification is key—avoid overcommitting and evaluate each theme thoroughly before investing.

Start with a modest allocation, monitor the progress of your chosen themes regularly, and grow your investments steadily over time.³

Check out our guide: How to Structure an Effective Thematic Investment Portfolio.

Note: This article is intended for preliminary educational purposes only and is not intended to provide investment guidance. Investors should conduct further research before making investment decisions.