1. How does S&P Dow Jones Indices (S&P DJI) define thematics?
Thematics encompasses trends that are anticipated to unfold over the long term — though definitions can vary and evolve. As an independent index provider, S&P DJI’s role extends beyond measuring markets, and we aim to offer a breadth of choices to investors. Our definition of thematics is comprehensive, embracing both niche topics and broad concepts across the thematic landscape. From drone technology to the larger clean energy value chain, we offer a wide range of thematic solutions.
We focus on identifying themes poised to drive growth and investment opportunities across financial markets, spanning various domains such as innovative technology, sustainability, healthcare and demographics. Many of these themes are anticipated to catalyze significant transformation or disruption across their respective sectors.
2. What is the next phase of indexing thematics, and what’s driving innovation and growth in this space?
Historically, thematic investing has primarily been the domain of active management, owing to its unique characteristics. This is because effectively navigating thematic exposures requires identifying and defining emerging trends, as well as understanding the intricate value chains associated with these themes, which often extend beyond traditional business hierarchies. There is also the need for agility to adapt as themes evolve over time.
Fortunately, thanks to recent advancements, the indexing toolkit has greatly expanded, providing S&P DJI with access to vast specialist datasets and cutting-edge technologies like artificial intelligence (AI). These resources enable us to develop thematic index solutions that better address investor needs. Moreover, within S&P Global, we benefit from a wealth of expert knowledge across diverse domains such as sustainability, commodities, and mobility. Leveraging this expertise, we have been able to create indices that seamlessly blend superior insights with rules-based portfolio construction and independent administration, offering thematic purity.
We believe that this combination of data, technology and expert knowledge will continue to propel the growth of thematic indexing and contribute to democratizing thematic investing, making it more accessible and impactful for market participants.
