Five thematic investing trends to watch in 2025

AI and robotics: The future of innovation 

Artificial Intelligence surged to prominence in 2023, with widespread adoption by individuals, businesses, and governments. While tech giants and chip names have dominated headlines, the real story lies in the broader ecosystem of emerging companies and industries harnessing AI to transform their operations.  

AI's potential remains vastly untapped, as current applications (e.g., machine learning, natural language processing, and autonomous decision-making) represent a fraction of what's possible. As AI technology advances, it is set to revolutionise a range of industries: 

• Healthcare: AI is already revolutionising drug discovery, diagnostics, and genome editing, with the potential to accelerate medical breakthroughs. 

• Manufacturing: Automation powered by AI is driving efficiency, improving quality control, and reducing operational costs. 

• Defence Systems: AI-driven technologies are enabling advancements in autonomous drones, surveillance, and predictive analytics for strategic planning. 

• Cybersecurity: With cyber threats escalating, AI is crucial in detecting, preventing, and responding to breaches in real time. 

• Power Infrastructure: AI can optimise power distribution, improve energy reliability, and accelerate the transition to cleaner energy. 

 
ETF ideas: 

• iShares Automation & Robotics UCITS ETF (RBOT): Provides exposure to global companies driving innovation in automation and robotics. 

• Global X Cybersecurity UCITS ETF (BUG): Offers exposure to companies leading advancements in AI-driven cybersecurity solutions. 

• VanEck Defense UCITS ETF (DFNG): Focuses on firms integrating AI-driven innovation into modern defence systems. 

Healthcare innovation: A growth and defensive powerhouse 

The healthcare sector stands at the crossroads of structural demand and technological innovation. An aging population is driving sustained demand for treatments and care, while breakthroughs in medical technology and drug development are unlocking opportunities for growth. 

Historically, healthcare demand has been largely immune to macroeconomic conditions, with global earnings growth in the sector steadily outpacing market averages. This stability, coupled with breakthroughs in medical technology, positions healthcare as a unique investment opportunity that blends defensiveness with growth. 

In fact, the industry is undergoing a revolutionary transformation, driven by advancements in: 

• Drug Discovery: Decades of genomics research are yielding breakthroughs in tackling diseases like cancer, diabetes, Alzheimer’s, and obesity.  

• AI in Healthcare Services: Beyond its growing role in drug discovery, AI is transforming patient care with predictive analytics and personalised treatment plans. 

• Robotics and Automation: Robotic-assisted surgeries have rebounded to pre-COVID levels and are increasingly adopted to address labour shortages and improve surgical precision. 

• Diagnostics and Minimally Invasive Procedures: Advanced technologies are enabling faster, more accurate diagnostics and less invasive treatments. 

• Mental Health and Wellness: Growing awareness and innovative treatments for mental health are gaining traction.
   

ETF ideas: 

• iShares Healthcare Innovation UCITS ETF (HEAL): Focused on companies revolutionizing healthcare through biotechnology, genomics, and medical devices. 

• Global X Genomics & Biotechnology UCITS ETF (GNOM): Provides exposure to firms at the forefront of genomic and biotech innovation, targeting precision medicine and next-gen healthcare solutions. 

• iShares NASDAQ US Biotech UCITS ETF (BTEC): Invests in the most innovative US biotech firms, with a focus on drug development and healthcare innovation.
   

Supply chain resilience: adapting to a fragmented global economy 

Global supply chains are undergoing a paradigm shift as businesses adapt to new geopolitical and economic realities. The US-China trade war and protectionist policies have highlighted vulnerabilities in the global trade system and accelerated efforts to build more resilient and diversified supply chains. 

The key drivers of supply chain resilience include: 

• Trade Wars and Tariffs: The US-China trade war and associated tariffs have fundamentally altered supply chain strategies, with businesses diversifying away from reliance on China. Countries like Vietnam, India, and Mexico have emerged as alternative hubs for manufacturing and assembly. 

• Near-shoring and friend-shoring trends: Governments are increasingly incentivising companies to bring production closer to home to mitigate risks of over-reliance on any single region. 

• Supply Chain Redundancy: Businesses are adopting "China+1" strategies, diversifying suppliers and manufacturing bases to increase flexibility and reduce vulnerabilities. 

• Geopolitical Risks and Supply Chain Disruptions: Geopolitical tensions, such as the Russia-Ukraine conflict and the COVID-19 pandemic, have amplified concerns about the fragility of global supply chains, pushing companies to invest in redundancy, diversification, and agility. 

 
As businesses face new pressures to ensure resilient and adaptable supply chains, opportunities are emerging in logistics, transportation, and infrastructure sectors: 

• Logistics Infrastructure: Demand for ports, warehousing, and transportation networks is on the rise. 

• Regional Manufacturing and Trade Hubs: Countries such as Mexico, India, and Southeast Asia are benefitting from increasing demand for manufacturing and export infrastructure as companies look to shift production away from China. 

• Efficiency and Sustainability: Logistics companies are focusing on sustainable, more efficient supply chain solutions to meet rising environmental standards.
   

ETF ideas: 

• iShares MSCI India UCITS ETF (NDIA): Offers exposure to the Indian market, where businesses are seeing increased investments in infrastructure, manufacturing, and logistics to support diversified supply chains. 

• L&G E-commerce Logistics UCITS ETF (ECOG): Targets firms driving e-commerce logistics, including warehousing, delivery, and supply chain solutions. 

• iShares Global Infrastructure UCITS ETF (INFR): Provides exposure to companies involved in critical global infrastructure, from transportation to energy grids. 

The rise of affluent consumers: opportunities in luxury and travel 

The global wealth landscape is shifting, with emerging markets set to drive the rise of newly affluent consumers. By 2050, emerging markets are predicted to account for six out of the seven largest economies, reshaping global consumption trends. Asia will be at the heart of this transformation, as rising incomes and an expanding middle class lead to increased demand for luxury goods, travel, and other high-end services. 

ETF ideas: 

• SPDR MSCI World Consumer Discretionary UCITS ETF (WCOD): Provides diversified exposure to consumer discretionary firms. 

• Amundi S&P Global Luxury UCITS ETF (LUXG): Targets companies in the luxury sector, including those involved in high-end retail, fashion, and automobiles. 

• iShares STOXX Europe 600 Travel and Leisure UCITS ETF (EXV9): Offers exposure to European travel, tourism, and leisure companies. 

• iShares Digital Entertainment & Education UCITS ETF (CBUN): Targets companies focused on digital entertainment, gaming, and education.
   

The New Economy: transforming infrastructure, connectivity, and innovation 

The New Economy is driven by transformations in infrastructure, digital connectivity, and advanced technologies like 5G and AI. Investments are flooding into sectors such as climate change, mobility, smart cities, and next-gen infrastructure, creating long-term growth opportunities. The key drivers of the New Economy include: 

• Sustainability and Climate Change: The global transition to a sustainable future is accelerating investments in green infrastructure, renewable energy, and energy-efficient systems. 

• Smart Cities and Mobility: As cities continue to expand, there’s an increasing demand for connected, intelligent urban environments. Smart cities use data and AI to create more efficient transportation systems, smarter utilities, and enhanced infrastructure. 

• Next-Gen Connectivity and 5G: 5G connectivity is the backbone of the New Economy, enabling faster, more reliable communications.
   

ETF ideas: 

• iShares Global Clean Energy UCITS ETF (INRG): Provides exposure to companies involved in renewable energy, from solar and wind to energy storage solutions. 

• iShares Digitalisation UCITS ETF (DGTL): Focused on companies driving digital transformation, from 5G networks to cloud computing and connectivity solutions. 

• WisdomTree New Economy Real Estate UCITS ETF (WTER): Provides exposure to firms reshaping real estate with smart cities, digital infrastructure, and the rise of next-gen connected spaces.