Thematic Investing

Stocks fell in September as rising bond yields pressured equity valuations and raised concerns that economic growth could slow. US indices outperformed European ones over the month as technology stocks rose.

The STOXX Future Water ESG index underlies the Deka STOXX Future Water ESG UCITS ETF and tracks companies driving innovation in water infrastructure, management and technology. Deka Investment’s Head of ETF Product Management explains how the strategy helps alleviate the water crisis and offers a long-term investment theme.

The STOXX Focus indices build portfolios based on constituents’ geographic revenue sources rather than their country of domicile, providing a more accurate representation of regional risk at a time of rising geopolitical tensions and global trade frictions. BlackRock’s iShares has expanded an ETF suite tracking the indices with a pair of APAC ex-Japan strategies, adding to coverage of Europe and the UK.

Four iShares thematic UCITS ETFs tracking STOXX indices were launched in 2016 and have grown into a range of 25 funds with EUR 12.4 billion in assets from investors all over the world. The collaboration behind them also traces a decade of innovation in index-based stock selection, from revenue analysis to patents and, most recently, AI.

Global equity indices rose in August, as better-than-expected earnings from US technology companies offset concerns about rising bond yields and geopolitical tensions in the Persian Gulf.

European equity indices rose for a fourth consecutive month in July while US stocks fell, as investors rotated away from the market’s most expensive sectors, including technology shares.

Closing Europe’s infrastructure gap may require up to EUR 12 trillion, according to some forecasts, and the region’s nations are stepping up to meet the challenge. STOXX has launched the STOXX Europe Infrastructure Builders index, which underlies the new iShares Europe Infrastructure Builders UCITS ETF from BlackRock, to capture the companies set to benefit from this structural trend.

Thematic and sector ETFs are increasingly being used side by side as investors seek more precise ways to express investment views. In this special report with ETF Stream, STOXX explores the key differences between the two approaches and their evolving role in portfolio construction.

In this special report with ETF Stream, STOXX explores the key differences between the two approaches and their evolving role in portfolio construction.

The STOXX Focus indices build portfolios based on constituents’ geographic revenue sources rather than their country of domicile, providing a more accurate representation of regional risk at a time of rising geopolitical tensions and global trade frictions. An IPE webinar with speakers from STOXX and iShares recently explored the rationale and performance of the strategies.

Global stock indices slipped in June as investors weighed the implications of the conflict in Iran and the trajectory of corporate earnings, yet still recorded their best quarterly performance since 2020. European stocks ended last month at an all-time high.

The market for sustainable fixed income products remains nascent. Only about 3% of assets under management in bond ETFs have a sustainable focus, according to ISS Sustainability, and a higher ratio is needed if the world is to meet global warming targets by 2050.