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  • Thematic Investing

    Access Trends Through Thematic ETFs

    John Patrick Lee, CFA, Product Manager
    June 11, 2021
     

    Exchange-Traded Funds can be useful tools for investors seeking to participate in specific and, targeted economic opportunities. Often, these are referred to as “themes”, which may be based in advancements such as technology or they can be solution driven—solutions investors seek to combat particular market conditions, like inflation. While ETFs that target themes generally tend to be concentrated portfolios, their addition to a portfolio is intended to add value not only from a return perspective, but to also aid with diversification and overall risk.

    Investors who are considering using ETFs within their portfolios to target particular themes should first do their due diligence. It is important to understand the key attributes of the strategy you’re considering; like index rules or the investment methodology, purity of exposure to a theme and also the potential longevity of a theme.

    VanEck has purpose-built a variety of ETFs for accessing timely and relevant trends shaping the modern investment landscape. See the table illustrated in the below.

    VanEck ETFs That Provide Thematic Accessibility

    Name Symbol Inflation Reopen Trade Infrastructure ESG EV/ Battery Aging Population Next Gen Entertainment Blockchain Higher Taxes
    Agribusiness ETF MOO ■                
    Biotech ETF BBH           ■      
    CEF Municipal Income ETF XMPT     ■           ■
    Digital Transformation ETF DAPP               ■  
    Energy Income ETF EINC ■ ■ ■            
    Environmental Services ETF EVX     ■            
    Gaming ETF BJK   ■              
    Gold Miners Equity ETF GDX ■                
    Green Bond ETF GRNB       ■          
    High Yield Muni ETF HYD     ■           ■
    Intermediate Muni ETF ITM     ■           ■
    Junior Gold Miners ETF GDXJ ■                
    Long Muni ETF MLN     ■           ■
    Low Carbon Energy ETF SMOG     ■ ■          
    Oil Refiners ETF CRAK ■ ■ ■            
    Oil Services ETF OIH ■ ■ ■            
    Pharmaceutical ETF PPH           ■      
    Rare Earth/Strategic Metals ETF REMX         ■        
    Retail ETF RTH   ■              
    Semiconductor ETF SMH             ■ ■  
    Short High Yield Muni ETF SHYD     ■           ■
    Short Muni ETF SMB     ■           ■
    Steel ETF SLX ■   ■            
    Unconventional Oil & Gas ETF FRAK ■ ■ ■            
    Uranium+Nuclear Energy ETF NLR   ■ ■ ■          
    Video Gaming and eSports ETF ESPO             ■    

    IMPORTANT DISCLOSURES

    Please note that VanEck may offer investments products that invest in the asset class(es) or industries included in this blog.

    This is not an offer to buy or sell, or a solicitation of any offer to buy or sell any of the securities mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. The information herein represents the opinion of the author(s), but not necessarily those of VanEck.

    The principal risks of investing in VanEck Vectors ETFs include sector, market, economic, political, foreign currency, world event, index tracking, social media analytics, blockchain and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. The Funds may loan their securities, which may subject them to additional credit and counterparty risk. ETFs that invest in high-yield securities are subject to subject to risks associated with investing in high-yield securities; which include a greater risk of loss of income and principal than funds holding higher-rated securities; concentration risk; credit risk; hedging risk; interest rate risk; and short sale risk. ETFs that invest in companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies. Investing involves risk, including possible loss of principal.

    All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.

    Please call 800.826.2333 or visit vaneck.com for a free prospectus and summary prospectus. An investor should consider the investment objective, risks, and charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information about the investment company. Please read the prospectus and summary prospectus carefully before investing.

  • Authored by

    John Patrick Lee, CFA
    Product Manager