Thematic ETF Investing Strategies For 2023

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In this episode of ETF Spotlight, I speak with Jon Maier, Chief Investment Officer at Global X, about thematic investing strategies for 2023. Global X offers 100 ETFs with about $37 billion in assets under management in the US.

2022 has been a brutal year for investors with both bonds and stocks suffering record losses, and it remains to be seen whether the Fed will be able to engineer a softish landing next year.

Jon expects a bumpy ride for markets in the near term and favors quality companies with strong cash flows. He expects themes like Cybersecurity, Clean Energy, Lithium, and Infrastructure Development to do well next year as demand in these areas is likely to increase despite slower global economic growth.

We continue to see increased demand for cybersecurity products and services due to rising threats. Take a look at ETFs like the iShares Cybersecurity and Tech ETF (IHAK - Free Report) and the Global X Cybersecurity ETF (BUG - Free Report). CrowdStrike (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) are among the top holdings in these ETFs.

Clean Energy and lithium ETFs could get a boost from the Inflation Reduction Act of 2022 which provides $370 billion to combat climate change. The iShares Global Clean Energy ETF (ICLN - Free Report) and the SPDR S&P Kensho Clean Power ETF (CNRG - Free Report) are worth a look.

The Global X Lithium & Battery Tech ETF (LIT - Free Report) holds companies like Tesla (TSLA - Free Report) and Albemarle (ALB - Free Report), which are involved in the global mining and exploration of lithium, or in lithium battery production.

Infrastructure stocks could benefit from an estimated $2.6 trillion in spending over the next 10 years. In fact, increasing infrastructure spending is one of the few areas that the two parties agree on. The Global X U.S. Infrastructure Development ETF (PAVE - Free Report) and the iShares U.S. Infrastructure ETF (IFRA - Free Report) invest in companies that are part of the infrastructure theme.

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