Top Trends for 2024: Identifying ETFs with the Highest Potential Yields
In the ever-evolving world of investments, thematic Exchange-Traded Funds (ETFs) have gained significant attention from investors. As we move into 2025, the focus is on defense, artificial intelligence (AI), clean energy, and nuclear power as the key megatrends.
The rise in geopolitical tensions and rapid technological advances have made AI a dominant theme. ETFs in this sector have attracted substantial investor interest, with over $900 million in net inflows in Europe alone during the first half of 2025. Top AI-focused ETFs, such as the iShares Robotics and Artificial Intelligence ETF (IRBO) and Global X Robotics & AI ETF (BOTZ), track indexes of companies involved in AI development, software, semiconductors, and robotics.
Power grids and energy infrastructure are another megatrend investors are interested in. While clean energy and climate change themes are crucial, power grid-specific ETFs often fall under broader “clean energy,” “climate action,” or “infrastructure” thematic ETFs. These funds generally include companies involved in energy transition technologies like smart grids, energy storage, renewables integration, and grid modernization technologies. The First Trust Nasdaq Clean Edge Smart Grid Infrastructure UCITS ETF (WKN: A3DGK5) is an example of an ETF that focuses on this sector.
The uranium theme has regained momentum due to heightened demand for nuclear energy as a clean, reliable power source amid the global energy transition and geopolitical uncertainty. Uranium ETFs and nuclear energy funds, such as the Global X Uranium ETF (URA) and VanEck Uranium+Nuclear Energy ETF (NLR), focus on miners, producers, and firms enabling nuclear power generation.
For those looking to invest in these megatrends, thematic ETFs are a wise choice. These funds cover a broad spectrum of a specific sector, reducing the risk of individual stock loss. An example of a thematic ETF is the Xtrackers Artificial Intelligence and Big Data UCITS ETF (WKN: A2N6LC). However, it's essential to remember that analyzing is crucial before investing in any trend. The chart above of ETF inflows shows that the former megatrends of 2020/21 are currently the losers by volume.
Investors should be cautious when betting on trend ETFs, as a hype can disappear as quickly as it appeared. It's always advisable to conduct thorough research and consider seeking professional advice before making any investment decisions.
Technology-focused Exchange-Traded Funds (ETFs), such as those in the artificial intelligence sector, have seen a surge in investor interest, with net inflows of over $900 million in Europe alone during the first half of 2025. These ETFs, like the iShares Robotics and Artificial Intelligence ETF (IRBO) and Global X Robotics & AI ETF (BOTZ), invest in companies involved in AI development, software, semiconductors, and robotics.
For those looking to invest in the nuclear power sector as part of the global energy transition, thematic ETFs such as the Global X Uranium ETF (URA) and VanEck Uranium+Nuclear Energy ETF (NLR) provide exposure to miners, producers, and firms enabling nuclear power generation.
