Thematic ETF Trends to Watch Entering 2024

Thematic ETFs have come a long way since they made their full debut in the ETF ecosystem. Thematics, which apply a slew of different views to the equity landscape, come in all shapes, sizes, and flavors. Thanks to ETFs’ tax advantages, transparency, and flexibility, they’ve emerged as an important player in the world of ETFs. Understanding thematic ETF trends, then, becomes a key part of an advisor’s preparation for a new year in 2024.

VettaFi’s Head of Research, Todd Rosenbluth, moderated a panel discussion on the topic Thursday at VettaFi’s Equity Symposium. The panel, “Thematic ETFs: Examining Investment Trends as We Approach 2024,” included Xtrackers by DWS Head of Systematic Investment Solutions, Americas Arne Noack and Engine No.1 ETF Portfolio Manager Eli Horton.

The trio asked viewers how much their average client portfolio allocates to thematic ETFs. The results: 42% of respondents said they had 1%-5% in that category. And 15% indicated they had 6%-10%. They also discussed the jump in the number of thematic ETFs, rising from about 40 in 2018 to over 280 in 2023, per GlobalX data.

How Engine No. 1 and Xtrackers See Thematic ETF Trends

See more: “How Thematic ETFs Differ From Sector Funds

Arne Noack