Thematic Investing Just Got Easier With This New ETF - InvestingChannel

December 24, 2024

Thematic Investing Just Got Easier With This New ETF

by Baystreet.ca097

There are many themed exchange-traded funds (ETFs) investors can choose from when looking to diversify. Innovation in health care, disruptive technologies, sustainability, and innovation in health care are some examples of popular themes out there right now.

But rather than choosing among those themes, investors can now gain exposure to all of them through the Amplify Thematic All-Stars ETF (NYSE Arca:MVPS).

The company focuses on stocks in those and other themes to give investors exposure to some of the hottest investments on the market right now. The bulk of the holdings are in tech-related sectors, with software companies accounting for 22% of the ETF’s total weight, followed closely by semiconductor stocks which account for 17%. Other industries the fund has exposure to include automobiles, entertainment, and communications equipment.

The fund’s largest holding is Tesla (NASDAQ:TSLA) at 4.8% and NVIDIA (NASDAQ:NVDA) is second with a weight of 4.2%. There are more than 160 stocks in the ETF, providing investors with a good cross-section of growth stocks. And outside of Tesla and NVIDIA, no other holding accounts for 4% of the fund’s weight.

Small cap stocks make up just 1% of the fund as it is heavily tilted towards large caps, which account for 85%. That’s good news for risk-averse investors as while these are growing companies, they are also established businesses.

The fund began trading on the NYSE Arca exchange on July 21 and it has an expense ratio of 0.49%. Given that the fund rebalances monthly, that’s not a steep price for the ETF.