Thematic indices are a type of stock index that is comprised of companies that operate within a specific industry or sector, capturing structural or macro trends disrupting the global economy. These indices are created to provide a benchmark for investors who are interested in a particular theme or industry, such as technology, healthcare, or renewable energy.
The companies that make up a thematic index are chosen based on certain criteria, such as revenue generated from the specific theme or industry, or the percentage of their business that is related to the theme or industry. Some examples of thematic indices include the STOXX Global Metaverse Index, the FTSE Thematic Index Series, the S&P Global Clean Energy Index, the Global X Robotics & Artificial Intelligence ETF, and the Nasdaq Biotechnology Index.
Investing in thematic indices can provide investors with a way to gain exposure to a specific industry or theme while also diversifying their portfolio. However, it is important to note that because thematic indices focus on a specific industry or theme, they may be more volatile and have a higher level of risk than a broader market index.
Here is a list of "megatrends" listed by InterContinental Exchange for their themactic indices and related products:
- Rising Demand for Semiconductors
- Health Care Innovation
- Consumer Lifestyle Shifts
- Focus on Sustainability
- Technological Transformation
- Transformation of Travel & Mobility
- Reinvestment in U.S. Infrastructure
- 5G & Future of Communication
- Resource Scarcity
The following firms offer themactic indices:
- Thematic Indices. InterContinentalExchange.
- The Metaverse: investing at the new digital frontier. Qontigo.
- FTSE Thematic Index Series. FTSE Russell.