What Is Thematic Investing?

By Jeremy Bowman – Updated Apr 23, 2025 at 11:51 AM EST

Key Points

Thematic investing targets specific themes like tech changes or ESG values.
Investing early in themes like AI can yield high returns, though risks vary.
Thematic funds can diversify portfolios but often have higher fees than index funds.

Whether you're new to the stock market or a seasoned investor, you're probably aware that there are different strategies you can choose from.

Some are as simple as investing in growth stocks, dividend stocks, or value stocks, but there are also more creative investing strategies. These are sometimes referred to as thematic investing.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Charles Schwab is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2025 $85 calls on Charles Schwab. The Motley Fool has a disclosure policy.