Thematic and sector ETFs are clearly on investors’ radars. Global thematic ETFs attracted EUR 62 billion in net new assets in 2025, while sector ETFs gathered EUR 54 billion, demonstrating that investors are embracing both approaches rather than choosing one over the other.
As the ETF landscape becomes more sophisticated, the conversation is shifting from whether investors should use thematic or sector exposures to how the two can work together within portfolios. A special report by ETF Stream, produced in partnership with STOXX, examines how the two strategies are evolving, where they differ, and why both continue to see growing investor demand.
While sector investing provides targeted exposure to established areas of the economy based on a company’s primary business activity, thematic investing seeks to capture long-term structural trends that often cut across multiple sectors. Themes such as artificial intelligence, automation, defense or ageing populations draw on broader economic and societal changes rather than traditional industry classifications.
As thematic investing matures, investors are also becoming more discerning. The report highlights how allocators increasingly analyze portfolio overlap, concentration risk and index methodologies to ensure thematic allocations provide genuinely differentiated exposure. Rather than replacing traditional sector allocations, thematic strategies are often being used alongside them to express specific long-term investment convictions.
We invite you to download the full report “Thematic and sector ETFs: Precision tools with distinct roles”.