Increasing lifespans and rising health care costs are driving people to proactively improve their health through physical activity, healthy eating and greater mindfulness of their well-being.
Robotics and artificial intelligence are making machines smarter and more capable than ever before, allowing robots to take on increasingly sophisticated tasks for faster and more accurate production. Declining computer chip costs and improving connectivity allows for virtually any object to connect to internet-enabled networks, effectively turning anything into a connected device.
Additionally, people around the world are communicating and sharing information at a rapidly growing pace via new social media channels such as mobile video, chat, photos, podcasts and blogs.
Investors interested in a thematic approach to capitalize on these industry disruptors should think of thematic investing as a satellite position or an equity sleeve in a growth-oriented portfolio, Maier advised. Thematic strategies tend to be alpha-seeking, have a long time horizon and are growth oriented. The thematic investments also transcend classic sector, industry and geographic classifications as many overlap.
“This section of the equity allocation has the potential to differentiate a portfolio and provide exposure to themes with long-term growth potential,” Maier said. “The thematic bucket adds a growth and momentum tilt, but the allocations toward the positions are relatively small in relation to the other positions.”
For example, Maier highlighted some of Global X’s ETFs to help investors find growth opportunities outside of a traditional sector strategy, including the Global X China Consumer ETF (NYSEArca: CHIQ), Global X Lithium & Battery Tech ETF (NYSEArca: LIT), Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ), Global X Internet of Things Thematic ETF (NasdaqGM: SNSR) and Global X FinTech Thematic ETF (NasdaqGM: FINX) help investors focus towards thematic growth funds, incorporating ideas of sector disruption across info tech, health care, consumer discretionary, materials, industrials, consumer staples and financials.
Financial advisors who are interested in learning more about equity thematic disruptors can watch the webcast here on demand.