Rising Tide of Thematic ETFs Could Put Investors Underwater

Rising Tide of Thematic ETFs Could Put Investors Underwater

Despite all the exceptionalism that is as American as a bald eagle chomping apple pie while cruising on a Harley-Davidson, the US is behind much of the world in some ways. One not-so-obvious area is investment in thematic funds, though thanks to the rise in active ETFs, the country is quickly catching up. That’s not necessarily a good thing. Assets in thematic US funds grew 50% over three years as of the third quarter of 2025, bringing the count…