Investing in Tomorrow: A Whitepaper on Thematic Investing

May 18, 2022

Investors consistently face the question of whether history will repeat itself, or if this time will be different. Does one position their portfolio based on what they’ve learned from the past or make adjustments based on their expectations for a different future?

The recent proliferation of smart beta ETFs and related factor-based research has placed a substantial amount of attention on analyzing the past. The success of these strategies ultimately depends on information from historical stock patterns providing valuable clues to future stock movements. But equally as important should be preparing for a future that may look completely different to anything we are accustomed to.

This is the where thematic investing comes in. It is a forward-looking investment approach that seeks to embrace the changes we anticipate happening in the world. When conducted properly, we believe thematic investing can help position a portfolio for an uncharted era of new technologies disrupting existing paradigms, demographics reshaping the needs of the world’s population, and shifting consumer behaviors forcing changes to existing business models.

In this whitepaper, we seek to help investors understand the intricacies of thematic investing and how to best approach the space, by exploring the following topics:

  • Why Your Portfolio Should Go Thematic
  • The Differences Between Cyclical and Structural Themes
  • What Does Thematic Growth Look Like?
  • Meet the Sector Disruptors
  • The Risk-based Argument for Thematic Investing
  • How to Value Themes
  • What Happens When Themes Converge?
  • Conclusion

Click here to download Investing in Tomorrow: A Whitepaper on Thematic Investing

Category: Articles

Topics: Disruptive Technology

Investing involves risk, including the possible loss of principal. There is no guarantee the strategies discussed will be successful.

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds’ summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting Please read the prospectus carefully before investing.

Solactive Indexes and INDXX Indexes have been licensed by Solactive AG and Indxx respectively, for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Solactive AG or INDXX, nor do these companies make any representations regarding the advisability of investing in the Global X Funds.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., (1 Freedom Valley Drive, Oaks, PA, 19456) which is not affiliated with Global X Management Company, LLC.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.