Jon Maier, Chief Investment Officer, Global X spoke with Julie Cooling, Founder & CEO, RIA Channel to discuss top opportunistic themes in 2020 and beyond, and how advisors can incorporate them in their portfolios.
Thematic ETFs, designed to provide exposure to unique corners of the market often underweighted by broad indexes, continue to gain momentum.
Global X’s suite of 24 thematic growth ETFs cover a range of disruptive themes such as robotics, telemedicine, the internet of things and cloud computing. Now, with the U.S. election in the rearview and the vaccine ahead, Maier zeros in on the long-term impact of the stay-at-home economy and big opportunity in cybersecurity, clean tech, and infrastructure. As the future moves closer and closer to a “smart” world, the shear amount of data collected will continue to compound and grow exponentially, creating somewhat of a target for hackers. As devices continue to become more and more connected, the need for cybersecurity will continue to accelerate over time, Maier explains.
Global X’s Cybersecurity ETF, BUG seeks to invest in companies that stand to potentially benefit from the increased adoption of cybersecurity technology. Maier also to points climate change mitigation and infrastructure as major growth themes.
CleanTech ETF, CTEC invests in companies involved in renewable energy production, energy efficiency, and pollution-reducing products and solutions. President elect Joe Biden and his administration have pledged climate change as a top priority, announcing plans to rejoin the Paris Climate Agreement upon inauguration. The Biden administration has also listed infrastructure as a part of their comprehensive stimulus plan to help boost unemployment and recharge the post-COVID economy. Maier acknowledges that the state of the deeply split government may present challenges to federally funded infrastructure projects, but that it may be one of the few places where both sides of the senate have common ground.
Global X’s U.S. Infrastructure Development ETF, PAVE provides exposure to companies involved in the production of raw materials, heavy equipment, engineering, and construction. When it comes to portfolio construction, Maier encourages advisors to combine traditional portfolio management, with exposure to forward-looking and disruptive themes for the most complete and well rounded solution.
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