Why investor appetite for thematic ETFs is shifting

After years of strong inflows, thematic ETFs faced net outflows in 2024, marking a shift in investor sentiment. While sustainable themes like the energy transition saw waning interest, AI-driven sectors—including big data, robotics, and automation—continued to outperform. Despite the downturn, the number of thematic ETFs in Europe continued to grow, with new strategies emerging in areas such as quantum computing and deglobalization. As investors reassess their approach to thematic investing, understanding the market’s evolving dynamics will be crucial in identifying future opportunities....