Australian Finance Podcast 5 thematic ETFs I'm watching like a hawk
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Nov 5, 2025 Dive into the world of thematic ETFs! Discover what makes these investment vehicles different and the risks involved. Owen analyzes five specific ETFs, including the Cybersecurity focus of HACK and the environmentally conscious ETHI. Learn about the tech giants in the FANG ETF and the healthcare exposure of IXJ, geared towards an aging population. Finally, explore the opportunities and challenges within the Chinese tech market through DRGN. A treasure trove of insights for savvy investors!
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Where Thematic ETFs Fit
- Thematic ETFs sit between broad market and single-sector funds and can cross multiple sectors.
- Treat them as either small core holdings or satellite positions depending on conviction.
Start Thematics As A Small Satellite
- Keep thematic ETFs small in your portfolio and start in the satellite portion, maybe 1% initially.
- Increase exposure only after three to five years of evidence the theme is durable.
Hype Often Hurts Short-Term Returns
- Many thematic ETFs launched early statistically underperform broad market ETFs over 3–5 years.
- Buying into hype increases the risk of lagging the broader market.