thematic investing

eastmidsaver

hi... so another type of investment i am considering is in thematics sector.
i can see things like automation, cleaner energy, healthcare, security etc being areas where it will always be looking to improve in the future.
again, as with anything i'd see this as a much longer term bet.
i am therefore thinking of investing in a fund that focuses on themes like the above.
there is not too much to base research on with this type of sector, as it's more forward thinking rather than having any past performances to judge against.
be great to hear your thoughts, and especially from those invested in this sector.
thanks.

george4064

Copied from another thread where I replied around investing in electric batteries for vehicles;

I don’t think it’s the worst idea in the world, especially if it’s a mutual fund/ETF that is only a small % of your overall portfolio as a satellite fund.

In my LISA, I hold L&G Battery Value-Chain UCITS ETF (amongst other ETFs/ITs) which is a concentrated portfolio of about 33 listed companies with a TER of 0.49%. It’s aim is to simply track the Solactive Battery Value-Chain Index.

Summary of the index is as follows: Solactive Battery Value-Chain Index aims to track the performance of a basket of stocks of companies that are providers of certain electro-chemical energy storage technology (i.e., battery technology) and mining companies that produce metals that are primarily used for manufacturing batteries.

https://fundcentres.lgim.com/uk/professional/fund-centre/ETF/Battery-Value-Chain/


You can see additional thematic ETFs here: https://fundcentres.lgim.com/uk/professional/fund-centre/#Strategy=Thematic

The other thematic satellite fund I have in the LISA is the L&G Cyber Security ETF, more info the link above.

wmb194

eastmidsaver said:

there is not too much to base research on with this type of sector, as it's more forward thinking rather than having any past performances to judge against.

Guess again; this week's Investors' Chronicle has some articles about this sort of thing. There are various ETFs, funds and indexes following the sorts of things you've mentioned e.g., https://www.investorschronicle.co.uk/ideas/2021/06/17/rise-of-the-machines-how-to-invest-in-robotics-and-artificial-intelligence/

Thrugelmir

If you fancy a owning a direct stake in a UK company. You could always consider Ilika.

https://www.ilika.com/

Only a suggestion to be researched. Not a recommendation. The share price is volatile!

eastmidsaver

thanks for the comments.

in response to wmb194 - i tried to read the link but it wouldn't let me read much without asking me to become a subscriber.

and in response to george4064 - i took a look at the link.  it seems the battery one has had an impressive 1 year where you more than doubled your money.  however, i do appreciate that much of this growth was during the pandemic period, where a lot of technological stocks rapidly grew in value,  and future returns are likely to be more modest.   

i am thinking of L & G, where they have a fund which diversifies in various themes.  whilst this has pros in that it is an easy access entry into different themes which means you not risking on just one area,   at the same time, if it is going to contain 400 to 500 stocks, it feels like any winning stocks (or themes) in there will be quite diluted in terms of overall returns.   

however as it's a long term horizon,  and for simplicity matters.... it might be suitable.  looking to make a decision this weekend and then just do it and forget it.

many thanks.

wmb194

eastmidsaver said:

thanks for the comments.

in response to wmb194 - i tried to read the link but it wouldn't let me read much without asking me to become a subscriber.

Investors' Chronicle is a weekly publication from the FT that you can also buy at the supermarket and newsagents in print. I don't know whether it still does but used to have a free sign-up thing where it would let you read a couple of articles every month.

bostonerimus

This is just another in a long line of gimmicks. There's no magic bullet to investing success; spread your money around to reduce volatility, invest regularly and wait 30 or 40 years. 

Thrugelmir

wmb194 said:

eastmidsaver said:

thanks for the comments.

in response to wmb194 - i tried to read the link but it wouldn't let me read much without asking me to become a subscriber.

Investors' Chronicle is a weekly publication from the FT that you can also buy at the supermarket and newsagents in print. I don't know whether it still does but used to have a free sign-up thing where it would let you read a couple of articles every month.

Main libraries normally stock the IC. Also the Economist and the FT.  Once they reopen an invaluable free resource.  

eastmidsaver

so one i am thinking is the new l & g global thematic fund.   i've been deliberating on it for a while. be great to know what you guys think to this - both positive and negative aspects.   many thanks.