From Morningstar: 2024-04-15 08:19:00

Thematic funds provide exposure to trends, with returns varying significantly. Due diligence is crucial when investing in themed funds, as they offer high returns but come with significant risks. Morningstar analyst advises investors to stay skeptical and allocate themed funds sparingly in portfolios.

The best performing thematic funds include the VanEck Crypto & Blockchain Innovators ETF, Global X Blockchain ETF, WisdomTree Blockchain ETF, iShares Blockchain Technology ETF, and Grayscale Future of Finance ETF. These funds have seen strong growth over the past year, outperforming their respective categories.

Conversely, the worst performing thematic funds include the Electric Vehicle Charging Infrastructure ETF, Global X Hydrogen ETF, Invesco Solar Energy ETF, Global X Solar ETF, and BNP Paribas Environmental Absolute Return Thematic Equity Fund. These funds have seen significant declines, underperforming their peers in the past year.



Read more at Morningstar: The Best and Worst Performing Thematic Funds in the UK