David Morey 
Thematic ETFs (exchange traded funds) are designed to capture long-term market trends rather than just track traditional sectors, as is the case with ordinary ETFs. The companies in these ETFs aren’t grouped by industry, but by themes. For instance, one could create an ETF of companies working in artificial intelligence, clean energy, or demographic change.
The appeal of these ETFs lies in the narratives they tell as much as in the profits themselves. ETFs such as these tell a story of an industry and its rise in the economy and society.
The Growth of Thematic ETF Investing
Thematic ETFs have grown rapidly in the last couple of years. This is true both in terms of the number of investors trading in ETFs and the value of assets under management. By June 2026, thematic ETFs are expected to be valued at half a trillion dollars, reflecting strong demand.
Much of the growth is driven by retail investors, but there’s also institutional interest. Thematic ETFs offer targeted exposure, are easy to diversify, and allow investors to pursue future-driven investments without picking individual companies and stocks.
Leading Investment Themes in 2026
Artificial Intelligence & Technology
Artificial intelligence is a dominant thematic ETF to invest in, and it has been for the last couple of years. The ETFs cover a wide ecosystem of companies working in and supporting the industry. This includes semiconductor manufacturers, cloud infrastructure providers, and robotic and software providers.
The role of AI will expand into many industries, and investing in the field has long-term potential. AI is used in everything from running the best crypto casinos to retail and transport, and new use cases will come up as the tech improves. Gambling industry was always among the first to accept tech innovations and it understood the importance of both crypto and AI. Online casinos use AI to propose wager options best suited to individual players.
Clean Energy & Climate Transition
Governments and corporations alike are investing in clean energy and climate transition as a part of a global effort to reverse climate change, while keeping the industry innovative and robust. These ETFs target renewable power, electric vehicles, battery technology, and hydrogen infrastructure.
The biggest risk comes from the changing regulatory landscape, but capital pours into these ETFs regardless of the risk.
Healthcare & Demographic Shifts
Most Western countries now have a similar demographic landscape. Baby boomers, the largest generation in terms of numbers, are about to retire, and the generations that followed had fewer children. The healthcare industry and the public service sector need to address this fact. ETFs covering companies working in biotechnology, precision medicine, and AI-driven drug discovery are all very profitable. It’s believed these ETFs will survive across different economic cycles.
Cybersecurity & Defense
As digital threats become more complex and damaging, the defense industry is focusing on businesses that provide cybersecurity protection. Experts such as those from CryptoManiaks have written about widening the crypto user base, which has contributed to these trends. Investing in companies that have achieved or are pursuing government deals is always a lucrative proposition for both retail and institutional investors.
Energy Infrastructure & Power Demand
Energy infrastructure ETFs are also in high demand, as the industry will have the biggest impact on the economy and politics in the years to come. It’s also one of the most innovative industries out there. Growing AI usage will also have a significant impact on the industry, as it requires substantial power.
What Investors Are Betting On in 2026?
In 2026, investors are increasingly using thematic ETFs to express targeted macro and technological views. The way capital flows into these assets suggests that investors are betting on the presumption that current technical trends will continue and disrupt existing industries.
Some ETFs also reflect geopolitical relations and trends driven by governmental policy agendas. The enthusiasm for thematic ETFs remains strong across the board.
Criticism of Thematic ETFs
Even though they are very popular, thematic ETFs have also been criticized by experts. Many funds underperform broader indices over full market cycles, especially when hype fades or valuations become stretched. The thematic approach also leads to concentration and therefore increases risk.
Some themes also tend to be short-lived. Those ETFs tend to get closed or rebranded. This shows how important it is to be familiar with the specific companies and stocks that ETFs expose investors to. The investor should also be aware of the ETF’s diversification.
To Sum Up
Thematic ETFs consist of stocks and bonds tied to a common theme. Investing in such ETFs has become popular, as it shows that investors are seeking a narrative and a purpose behind their financial endeavors. The list of the most common themes ETFs showcase the industries and tech trends that have been shaping finance over the last couple of years. It includes AI, clean energy, and health care.
There are also downsides to investing this way, as increased concentration also means greater risk. Some trends also end, so not all theme ETFs turn out to be lucrative.
