What is Thematic Investing?
2
alpsfunds.com 1-866-759-5679 Why Use Thematic Exchange Traded Funds “ETFs” in a Portfolio? • To capitalize on emerging trends within technology, demographics, and social effects on the global economy • An opportunity to add value outside of traditional style box investing • To align your beliefs with your investments • To add alpha around the core of the portfolio (i.e. as a satellite or complement to the core) How to Use Thematic ETFs in a Portfolio? • As part of the growth equity sleeve to capture innovation • As a stock replacement story to add diversification • As part of an ESG * (Environment, Social, Governance) sleeve What is Thematic Investing? SS&C ALPS Advisors: Providing Alpha Through Thematic ETFs Thematic investing aims to provide investors with exposure to secular trends taking shape within the global economy. Such trends may impact industries and influence how they do business. As a result, companies leading the disruption of the status quo may provide significant growth opportunities for investors. Core Examples: • Disruptive Technologies • Medical Breakthroughs • Clean Energy Factors Real Assets Tactical Thematic For example, within the thematic category of disruptive technology, Netflix is a great example of a company that replaced an existing digital distribution platform. Netflix is founded. Netflix hits 1 million subscribers. Netflix announces streaming video via its cloud platform. Netflix offers itself to Blockbuster for $50 Million. Blockbuster declines. Blockbuster has a market cap of $4.5 Billion. Blockbuster has lost 75% of its market cap. Blockbuster files for bankruptcy. Blockbuster is founded. 1985 1997 2000 2003 2007 2010 2005 2002 As of 6/30/2021, Netflix (1.05%) is held in ALPS Disruptive Technologies ETF. 1999 Blockbuster goes public, raising $465 Million with 6,500 stores.
Transcript of What is Thematic Investing?
alpsfunds.com1-866-759-5679
Why Use Thematic Exchange Traded Funds “ETFs” in a Portfolio?
• To capitalize on emerging trends within technology, demographics, and social effects on the global economy
• An opportunity to add value outside of traditional style box investing
• To align your beliefs with your investments
• To add alpha around the core of the portfolio (i.e. as a satellite or complement to the core)
How to Use Thematic ETFs in a Portfolio?
• As part of the growth equity sleeve to capture innovation
• As a stock replacement story to add diversification
• As part of an ESG* (Environment, Social, Governance) sleeve
What is Thematic Investing?
SS&C ALPS Advisors: Providing Alpha Through Thematic ETFs
Thematic investing aims to provide investors with exposure to secular trends
taking shape within the global economy. Such trends may impact industries and
influence how they do business. As a result, companies leading the disruption of
the status quo may provide significant growth opportunities for investors.
Core
Examples:
• Disruptive Technologies
• Medical Breakthroughs
• Clean Energy
FactorsReal Assets
Tactical
Thematic
For example, within the thematic category of disruptive technology, Netflix is a great example of a company that replaced an existing digital distribution platform.
Netflix is founded.
Netflix hits 1 million subscribers.
Netflix announces streaming video via its cloud platform.
Netflix offers itself to Blockbuster for $50 Million. Blockbuster declines.
Blockbuster has a market cap of $4.5 Billion.
Blockbuster has lost 75% of its market cap.
Blockbuster files for bankruptcy.
Blockbuster is founded.
1985
1997 2000 2003 2007
201020052002
As of 6/30/2021, Netflix (1.05%) is held in ALPS Disruptive Technologies ETF.
1999
Blockbuster goes public, raising $465 Million with 6,500 stores.
alpsfunds.com1-866-759-5679
Disclosures & DefinitionsAn investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contain this and other information call 1.866.759.5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing. ETF Shares are not individually redeemable. Investors buy and sell shares of the ETFs on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 50,000 shares.There are risks involved with investing in Exchange-Traded Funds (ETFs) including the loss of money. Additional information regarding the risks of this investment is available in the prospectus.
Diversification does not eliminate the risk of experiencing investment losses.
An investment in the Funds is subject to investment risk including the possible loss of the entire principal amount that you invest.
Alpha: a measure of performance on a risk-adjusted basis.
High conviction: active management focused on high confidence securities.
Pure Play: refers to a publicly traded company that is focused on only one industry or product.
The S&P 500® is an index of 500 stocks chosen for market size, liquidity and industry grouping among other factors. One may not invest directly in an index.
ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Funds.* ESG Funds: Investments that consider environmental, social, and governance impact.APS001783 10/31/2021
ALPS Advisors Thematic ETF Sleeve
ALPS Thematic ETFs
• Low overlap to an equity core (S&P 500)
• Low overlap to each other
• High Conviction Portfolios with Purpose
• Pure Play Holdings to Maximize Exposure
ALPS Disruptive Technologies ETF
Ticker: DTEC
ALPS Clean Energy ETF
Ticker: ACES
ALPS Medical Breakthroughs ETF
Ticker: SBIO
Exposure to 10 different disruptive technology themes with 10 global, pure-play companies within each theme.
Exposure to U.S. and Canadian-listed pure-play companies that derive a majority of their value from a clean energy business. ESG*
Exposure to U.S. small and mid cap biotechnology companies that are at the forefront of drug development and innovation.
