2 Thematic ETFs That Provide Access To A Specific Market Niche – Investing.com

2 Thematic ETFs That Provide Access To A Specific Market Niche – Investing.com

The SPDR® S&P 500 ETF (NYSE:) was the first exchange-traded fund launched in the US in January 1993. Since then the number of funds and assets under management have grown significantly.

Metrics highlight in 2003 there were 276 ETFs stateside. At the end of 2020, the number reached 7,602. And according to numbers from the research and consultancy group ETFGI, the first half of 2021 saw “record assets and net inflows in Active ETFs world-wide of US$400.77 billion and US$82.23 billion.”

There are of course different types of ETFs, focusing on various asset classes or investment styles. A large number of funds are passive equity ETFs that track the returns of widely followed stock market benchmarks such as the , the or the .

Yet, a growing numbers of ETFs are niche funds that offer exposure to specific themes. For instance several niche technology funds offer a narrow focus to sub-segments of the tech sector. Examples include ETFs that provide access to artificial intelligence (AI), blockchain, cybersecurity, e-commerce, financial technology (fintech), or robotics focused companies.

We should note that the US Securities and Exchange Commission (SEC) reminds investors:

“Certain ETFs can be relatively easy to understand. Other ETFs