Tema ETFs is redefining thematic investing by prioritizing long-term structural trends and precision in security selection, diverging from the industry norm of chasing short-lived market fads.
This innovative approach was the focal point of a virtual session hosted by Benzinga’s “ETFs Unlocked,” moderated by Benzinga’s Aaron Bry.
Yuri Khodjamirian, CFA, chief investment officer at Tema ETFs, revealed the company’s innovative approach to thematic investing, addressing common pitfalls in passive funds and showcasing their latest offerings in various market themes including product reshoring in the U.S., luxury goods, and cardio-metabolic diseases.
Tema ETFs: Pioneering Precision in Thematic Investing
Established two years ago with six funds in the market, Tema ETFs has carved a niche in the ETF landscape.
“We want to be in structural long term growing areas of the market where we really believe there’s an investment merit over multiple decades,” Khodjamirian said.
Emphasizing long-term structural themes, they use expert analysis for security selection, ensuring portfolios are precisely focused on high-quality companies benefiting from these structural trends.
Addressing Core Issues in Thematic Investing
Tema’s mission is to solve key problems in thematic investing. Traditional passive thematic investing often gravitates towards transient market fads, lacking investment longevity.
Tema, conversely, chooses themes with multi-decade investment merits, steering clear of the hype cycle.
Precision in security selection is another area where Tema stands out.
Khodjamirian highlighted the industry’s challenge in aligning themes with appropriate stocks, citing the overrepresentation of companies like Microsoft Corp. (NASDAQ:MSFT) and NVIDIA Corp. (NASDAQ:MSFT) in numerous unrelated ETFs. Tema addresses this through meticulous expert-led stock selection, ensuring themes and securities align perfectly.
Quality is also paramount at Tema. Rather than compromising on company quality to fit a theme, Tema’s approach is to handpick quality businesses, steering clear of poor capital allocators or unprofitable ventures.
Spotlight on Key ETFs: American Reshoring, Cardiovascular Diseases, and Luxury Goods
The discussion then turned to specific ETFs offered by Tema, highlighting their…
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