Thematic investing continues its steadfast growth as investors seek to tap into long-term megatrends and geopolitical drivers with promising economic upside.
According to Morningstar, there was USD 769 billion invested in thematic funds worldwide at the end of June 2025, 37% more than a year earlier. The funds target the beneficiaries of transformative forces shaping societies, businesses and the economy, and creating historical opportunities for investors.
Themes dominating thematic index launches
Indices have played a vital role in the thematic rollout, providing investors a systematic and low-cost approach with high customization possibilities. Since 2011, STOXX has introduced over 60 thematic indices. Far from slowing down, emerging technologies and disruptive forces continue to accelerate amid innovation and societal change, capturing investors’ attention. Leading the charge are themes including artificial intelligence (AI), digital assets, energy transition metals and, most recently, the defense sector. STOXX has launched indices covering these themes, many which now underlie investable products.
Defense — Europe embarks on historical investment cycle
National security and defense have become key areas of investor interest, particularly in European military equipment providers. This trend accelerated following Russia’s invasion of Ukraine in 2022 and has been reinforced by the European Commission’s announcement of an EUR 800 billion investment plan in defense equipment and military innovation by 2030, and by increased spending pledges from NATO nations.
STOXX has launched a range of thematic defense indices, which includes the STOXX® Europe Total Market Defense Capped, STOXX® Europe Total Market Defence Space and Cybersecurity Innovation, and STOXX® Europe Targeted Defence. The indices’ distinct methodologies show the customization possibilities in index construction to meet investor preferences, including, but not limited to, selection methodologies based on companies’ revenues and intellectual property (patents).
AI – Ever-faster transformation
With billions forecast to be spent on computing infrastructure, training and applications,[1] AI appears as a generational game-changer for the economy. AI, however, is a vast and complex topic that covers multiple conceptual areas and technologies. The STOXX AI thematic suite aims to help investors navigate this space, accessing different aspects and development stages of its sub-themes and segments. The index family is composed of:
- STOXX® Global Artificial Intelligence
- STOXX® World AC AI Market Leaders
- STOXX® Global AI Infrastructure
- STOXX® Global AI Adopters and Applications
- STOXX® Global Artificial Intelligence Innovators
Digital assets as theme and asset class
One of the most disruptive technologies to emerge in recent years has been that of blockchain. Investors have sought to harness the transformation that blockchain technology is bringing to the market, and thematic investing has been one way of integrating that potential growth into equity portfolios.
With clearer regulation, cryptocurrencies have become a new asset class in themselves. In December 2023, STOXX introduced the STOXX® Digital Asset Blue Chip index, which aims to track high-quality assets that represent the crypto universe today. STOXX has also launched single-token indices tracking Bitcoin, Ethereum, Solana, Cardano and Ripple.
Energy transition metals and mining: Brown-to-green revolution boosts demand
The brown-to-green revolution requires substantial amounts of metals such as copper, lithium, nickel, cobalt and aluminum, which are good and malleable conductors of heat and electricity. The minerals are enabling the growth in solar and wind power, and in electric vehicles (EVs), as nations move away from fossil fuels. Under the International Energy Agency (IEA)’s Net-Zero by 2050 Roadmap, renewables may increase their share of power from 10% currently to 60% in three decades, exacerbating supply shortages for transition metals.
STOXX’s energy transition metals thematic indices offer targeted exposure to key segments driving the transition metals boom — whether individual commodities or specific producer groups — in ways that traditional sector indices cannot. They include the STOXX® Global Copper Miners, STOXX® Global Lithium and Battery Producers, and STOXX® Global Silver Mining.
STOXX Thematic Framework
But how does a theme progress from concept to index? STOXX uses a lifecycle framework to identify investable themes based on their conceptual development and business maturity.
The STOXX Thematic Framework recognizes there are four stages in the development of a thematic concept: ideation, innovation, commercialization and maturity. As the cycle evolves, conviction in the theme grows from low to high. At its core, thematic investing relies on indicators to identify companies that, at each stage of the evolution cycle, are most likely to be main contributors or beneficiaries of the theme.
More information
- Artificial intelligence indices
- European defense indices
- Digital assets indices
- Transition metals indices
- Thematic indices in general
[1] For some insights on spending plans on AI, see FT, ‘Who will pay for the $3tn AI building boom?’ Aug. 14, 2025.