Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four fundamental versions. Another 20 products are currently waiting in the wings, which will boost the firm’s range to a total of more than 30.
The initial seven thematic ETFs included themes such as banks, generative AI, cloud computing, cybersecurity, gold and airlines, as well as ‘European luxury’.
The firm, which has a low-cost approach, said that with expense ratios priced at 0.35 per cent, its seven thematic funds are 40 per cent cheaper than the average expense ratio of 0.60 per cent charged by other thematic ETFs.
The expense ratios of the four fundamental ETFs are priced between 0.29 to 0.35 per cent.
These include the US small-cap cash-flow champions ETF, the US cash-flow champions ETF and the US R&D champions ETF, which are all priced at 0.29 per cent and a natural monopoly ETF with an expense ratio of 0.35 per cent.
Themes ETFs said that all four funds are collectively 30 percent cheaper than the average expense ratio of 0.45 per cent charged by other fundamental ETFs.
The firm reports that it aims to disrupt the market with its competitive fee structure.
At the launch of the first 11 products, vice president and investment strategist, Taylor Krystkowiak, who leads on the creation of macroeconomic and market research at the firm said:
“All else equal, funds with higher fees pose a greater drag on portfolio performance. We have made it our mission to provide investors with relatively more cost-efficient access to potential market opportunities via our ETFs.”
He added: “Our ETFs seek to provide investors with a way to own the opportunities that are shaping the future and moving markets.”
The firm reports that as at early April 2024, the five funds showing most growth since inception include generative AI (21.48 per cent), US small-cap cash-flow champions (19.88 per cent), gold miners (19.72 per cent), US R&D champions (18.24 per cent) and US cash-flow champions (15.28 per cent).
The three funds showing most growth over the last month have included gold miners (17.65 per cent), followed by US small-cap cash-flow champions (6.88 per cent) and US cash-flow champions (5.88 per cent).
Updating on what’s next for Themes, Harvard graduate, Krystkowiak, whose previous roles include vice president of product management at Cboe Vest and investment strategy analyst at Raymond James, describes the activity in the pipeline:
“The next set of ETFs is on the way: we have 18 derivative products that are coming very shortly. We’re currently waiting for the final round of comments from the SEC, and we hope to target May or June this year for the launch.” Krystkowiak says that another two thematic ETFs are planned too.
Themes ETFs is led by chief executive Jose Gonzalez-Navarro, who previously co-founded both Global X ETFs in 2008 and London-based Leverage Shares ETPs in 2018. Global X now manages over 100 ETFs in the US and Leverage Shares manages over 150 products in Europe.
