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7 Thematic Mutual Funds to Add Some Spice to Your Portfolio

InvestorPlace Logo By Will Ashworth of InvestorPlace | Slide 1 of 8: One of the biggest trends in exchange-traded funds in recent years has been the rise of the thematic fund. They’ve become a viable alternative to sector funds. Forgotten in the ETF stampede is the fact thematic mutual funds to buy are also gaining traction with investors.  In February, Morningstar took a look at the global thematic funds' landscape. It came to some interesting conclusions.    Worldwide, thematic mutual fund assets grew 160% in the three years ended Dec. 31, 2019, to $195 billion. Ten years ago, they accounted for just 0.1% of total global equity fund assets, to 1% at the end of 2019.   There are four major themes investors have focused on: Technology (50% of $195 billion), Physical World (22%), Social (18%), and Broad Thematic (10%). The number of main themes is narrow because investors continue to chase performance.   Picking winning themes is difficult, but the rewards can be significant. However, it’s important to keep in mind that many thematic funds don’t survive. Only 45% of thematic funds launched before 2010 made it to 2020.  That’s a depressing statistic.   American Beacon Ark Transformational Innovation Fund (MUTF:ADNPX)  Jacob Internet Fund (MUTF:JAMFX)  Gabelli Pet Parents Fund (MUTF:PETZX)  BlackRock Technology Opportunities Fund (MUTF:BGSAX)  Leland Thomson Reuters Venture Capital Index Fund (MUTF:LDVAX)  New Alternatives Fund (MUTF:NAEFX)  Rational Dynamic Brands Fund (MUTF:HSUAX)             7 Airline Stocks to Buy on Pelosi Stimulus Hopes          And now that I’ve depressed the heck out of investors, here are seven thematic mutual funds to buy I think can make it to 2030 and beyond. 

One of the biggest trends in exchange-traded funds in recent years has been the rise of the thematic fund. They’ve become a viable alternative to sector funds. Forgotten in the ETF stampede is the fact thematic mutual funds to buy are also gaining traction with investors.  In February, Morningstar took a look at the global thematic funds' landscape. It came to some interesting conclusions.  Worldwide, thematic mutual fund assets grew 160% in the three years ended Dec. 31, 2019, to $195 billion. Ten years ago, they accounted for just 0.1% of total global equity fund assets, to 1% at the end of 2019.  There are four major themes investors have focused on: Technology (50% of $195 billion), Physical World (22%), Social (18%), and Broad Thematic (10%). The number of main themes is narrow because investors continue to chase performance.  Picking winning themes is difficult, but the rewards can be significant. However, it’s important to keep in mind that many thematic funds don’t survive. Only 45% of thematic funds launched before 2010 made it to 2020.  That’s a depressing statistic.  American Beacon Ark Transformational Innovation Fund (MUTF:ADNPX) Jacob Internet Fund (MUTF:JAMFX) Gabelli Pet Parents Fund (MUTF:PETZX) BlackRock Technology Opportunities Fund (MUTF:BGSAX) Leland Thomson Reuters Venture Capital Index Fund (MUTF:LDVAX) New Alternatives Fund (MUTF:NAEFX) Rational Dynamic Brands Fund (MUTF:HSUAX And now that I’ve depressed the heck out of investors, here are seven thematic mutual funds to buy I think can make it to 2030 and beyond. 
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