Fuse Blog

Passive Growing Market Share in Thematic Funds

  • Thematic funds, which FUSE defines as mutual funds/ETFs that invest across sectors in broad themes such as disruption or clean energy, ended last year with $148 billion in assets. Some 60% of thematic fund assets were in passive products at year end, up from 55% at the end of 2021 and 51% at the end of 2017.
  • The products drew $12.5 billion in net inflows in 2022, but that was down from $57.5 billion in net inflows in 2021. The Pacer US Cash Cows 100 ETF led the way with 2022 net inflows of $9.4 billion, followed by Ark Innovation ETF with $1.3 billion.
  • Product development efforts centered on thematic funds slowed in 2022 amid market volatility. Last year saw 148 new fund/ETF launches, down from 193 in 2021 but up from 106 in 2020.

Assets in Thematic Mutual Funds & ETFs, 2017-2022 ($B)

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Source: FUSE Research Network, Morningstar