Thematic ETFs Are Evolving, Not Disappearing
Thematic ETFs took center stage in the U.S. ETF market over the past few years, but 2024 was a stark reminder that not all themes have staying power. As investors recalibrated amid interest rate uncertainty, macroeconomic resets, and headline fatigue, some of the buzziest ideas of the past cycle saw significant outflows. Meanwhile, a more selective class of strategies emerged as winners, revealing an important shift in how U.S. investors are approaching thematic exposure.