Inga Rachwald, Senior Portfolio Strategist, Charles Schwab joined Keith Black, Managing Director, RIA Channel to discuss the evolution of thematic investing, allocation ideas and investment considerations.
Thematic investing allows investors to access targeted exposure to a specific theme or global trend, that may otherwise be underrepresented in traditional weighting strategies. In the last decade, the demand for and flows into thematic investing has grown substantially. “Now we have the technology to help us systematically find thematic companies in a manner thats more timely, efficient and complete,” says Rachwald. Schwab Asset Management leverages a rigorous and systematic approach to thematic investing, which includes natural language processing and keyword analysis. From an allocation perspective, Rachwald encourages advisors to think of thematic investing as a complement to a diversified portfolio.
For more insights on this topic:
Thematic Investing Insights
The Schwab Crypto Thematic ETF: STCE
Charles Schwab Asset Management