An exciting ETF for the future (Photo: freepik)
The world never stands still – and the major changes of our time open up enormous opportunities for investors. The Wisdomtree Megatrends UCITS ETF bundles the potential of global megatrends such as artificial intelligence, climate change and blockchain in an innovative concept. A dynamic topic portfolio for everyone who wants to benefit from change.
The power of megatrends – what’s behind them?
Megatrends are long-term and profound changes in technology, society and the economy. Examples include the development of artificial intelligence, the energy transition or demographic change through changes in society.
These trends not only influence markets and companies, but also our daily lives. The Wisdomtree Megatrends ETF (ISIN: IE0000902GT6) bundles the most important growth themes of the future in one product.
A dynamic approach to the issues of tomorrow
The ETF uses a dynamic momentum approach to continuously increase the weighting of relevant themes. Within each theme, stocks that are performing particularly positively are selected. This quarterly rebalancing of the portfolio makes it possible to benefit from both short-term market movements and long-term developments.
Main topics: The ETF currently covers 16 themes including artificial intelligence, cybersecurity, semiconductors, healthcare, nuclear energy and blockchain.
Responsiveness: Through strategic tactical adjustments, the ETF can react to market sentiment, overweighting or underweighting themes and thus benefiting from periods of exuberance or lull.
Trump's election victory and the consequences for the ETF
The re-election of Donald Trump as US President has left a clear mark on the financial markets. Issues such as blockchain and defense are buoyed by the prospect of political support and increased spending, while ESG-focused companies have suffered setbacks.
The Megatrends ETF reacted promptly: By overweighting the crypto sector and selected defense stocks, the ETF was recently able to significantly increase its performance. The top holdings at the end of October included, for example, the shares of Coinbase and Microstrategy. The performance over a 3-month period: 17.12 percent.
How does portfolio construction work?
The ETF portfolio is created in 3 steps:
- Strategic topic selection: Every year, WisdomTree determines which topics offer the greatest opportunities in the medium to long term.
- Tactical assignment: Topics are overweighted or underweighted every quarter in order to benefit from current market phases.
- Title selection: Within the topics, WisdomTree selects companies that are particularly heavily involved in the respective topic. External expertise and a focus on thematic “purity”, i.e. a clear relationship between business activities and trends, are incorporated.
Conclusion: An exciting ETF for the future
The Wisdomtree Megatrends ETF is a promising option for anyone who wants to benefit from the groundbreaking developments of our time in a broadly diversified manner. The combination of long-term thematic focus and short-term flexibility makes it a particularly adaptable investment. Whether artificial intelligence, blockchain or healthcare – this index fund stays in tune with the times.
Disclaimer:
Not investment advice. No call to buy or sell securities.
