ETF Trends CEO Tom Lydon discussed the Amplify Thematic All-Stars ETF (MVPS) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
MVPS is a core thematic ETF investing in the themes and stocks considered most popular as determined by U.S. ETF ownership data. MVPS seeks investment results that generally correspond to the ETF All-Stars Thematic Composite Index. The ETF All-Stars Thematic Composite Index seeks to identify “consensus” stocks within a set of themes, based on stocks’ prevalence of inclusion among U.S.-based thematic ETFs and the total market value invested in them.
Are you daunted by the number of thematic strategies available? MVPS seeks to capture the top thematic investments within the ETF universe all in one place, making it a one-stop shop for investors looking for the best-in-class performers across given themes.
There has been an explosion in thematic ETFs that cover niche market opportunities around the world. Currently, there are 175 thematic ETFs with $136.4 billion in assets under management, compared to just 20 thematic ETFs with $2.1 billion in assets back in 2012. Among the most popular thematic ETF plays: multi-thematic approach makes up 22%, disruptive technology makes up 21%, sustainability makes up 17%, evolving consumer makes up 13%, industrial revolution makes up 13%, health innovation makes up 8%, and financial technology makes up 6%.
The problem with the growing thematic investment landscape is that there are too many options to choose from, and it is hard to narrow the search down. Investors will have to weigh their choices against arbitrary definition, subjective selection criteria, divergence in returns, and an ever-changing market landscape.
ETF Action could help investors better define the space. MVPS tracks the ETF All-Stars Thematic Composite Index, created and run by ETF Action. ETF Action is a financial technology and research company offering institutional-level data, industry-leading tools, actionable insights, engaging model portfolios, and differentiated index strategies designed to empower investment professionals.
With its core premise of viewing markets through the lens of ETFs, ETF Action harnesses the extraordinary growth and unparalleled transparency of ETFs to democratize market research. The proliferation of thematic ETFs has left investors with a series of questions- Which themes should I own? How much should I allocate to each theme? How do I focus on consensus, pure-play stocks representing a theme? When should I rebalance my exposure? MVPS helps address these questions and provides a convenient solution for investors who want to own themes without the hands-on research needed to identify thematic opportunities.
Listen to the full podcast episode on MVPS:
For more podcast episodes featuring Tom Lydon, visit our podcasts category.