Thematic Investing

European stocks extended January’s strong performance last month, as investors continue to favor a region that’s underperformed in recent years. US indices failed to keep their momentum.

With five thematic indices targeting the Artificial Intelligence theme, STOXX offers issuers and investors flexible opportunities to harness the entire value chain around the technology. A new whitepaper explores the construction of the indices through a life-cycle thematic framework.

The STOXX Artificial Intelligence suite currently consists of five indices and is used to capture the different aspects and development stages of the targeted theme. This paper uses the AI theme to discuss thematic investing, and explore the identification of key subthemes and construction of thematic indices.

Stocks jumped in January as investors’ optimism that earnings will continue to grow overshadowed concerns about global politics and trade issues.

Stocks dropped in December, paring global indices’ double-digit returns in 2024.

The STOXX Global AI Infrastructure and STOXX Global AI Adopters and Applications thematic indices allow investors targeted exposure to companies in different stages and involvement in AI, as the technology is deployed. The indices employ a combination of revenues and patents screens to select both established businesses as well as innovators.

STOXX Ltd., part of the ISS STOXX group of companies and a leading provider of benchmark and custom index solutions to global institutional investors, today announced its expanding collaboration with BlackRock, with BlackRock’s launch of two iShares ETFs tracking the STOXX Global AI Infrastructure and STOXX Global AI Adopters and Applications thematic indices.

The STOXX Global 1800 index posted its best month so far this year in November as investors reacted positively to Donald Trump’s decisive victory for a second term as US president.

Stocks fell for the first month in six in October as earnings disappointments from technology companies and rising bond yields drove investors to take profits from this year’s rally.

The ETF was launched in December 2022 and follows a unique patents-based stock selection methodology targeting innovators that are creating and deploying the Metaverse.

STOXX uses a lifecycle framework to identify investable themes based on their conceptual and business evolution. Depending on the point in that cycle, either patents and/or revenues may provide the best signal to select the key contributors and main beneficiaries of that theme.

Stocks gyrated in August, with benchmarks ending in positive territory for the month, as concern about a US economic slowdown was outweighed by optimism that interest rates will be cut this month. The STOXX World AC index rose 2.6% last month when measured in US dollars and including dividends, taking its 2024 gain to 16.4%. The STOXX Global 1800 index added 2.8% in the month.