Thematic ETFs Have Exploded in 2026: See the Standouts

The acceleration of the ETF ecosystem in the last decade has seen countless new funds embrace the wrapper’s tax efficiency and flexibility. That has seen more ETFs take on the core equity and fixed income categories to great success. However, it is the thematic ETFs that often get more headlines for narrative-friendly strategies. While they haven’t always delivered, this year has seen a ton of new launches – almost 100 since the end of Q1 alone.

That stat, shared by Strategas Asset Management Chief ETF Strategist Todd Sohn recently, marks a huge leap compared to prior years. Those new launches, many of which target AI, may see many of their number fold in a few years as many other thematic ETFs have.

However, with the huge crop this year, the absolute number of new funds that survive will likely be higher a few years out. For investors, then, in an environment with more idiosyncratic, thematic ETFs, finding the long-term standouts is critical. Such funds can not only provide strong returns if they can ride a powerful trend, but also reduce concentration risk.

For example, investors can consider thematic ETFs like the ROBO Global Artificial Intelligence ETF (THNQ). It launched back in 2020, which, despite how shocking it feels to write, was six years ago. Charging 68 basis points, THNQ tracks the ROBO Global Artificial Intelligence index. The index looks to measure the performance of firms deriving revenue from AI advancements. The index classifies companies into infrastructure or applications and services. The ETF further separates those equities into areas like network and security, semiconductors, big data, and more.

Scored for AI revenue from 1 to 100, with those scoring 50 or more included, it has returned 55.5% YTD. Per ETF database data, THNQ has returned 42.7% over three years, with the fund beating the ETF Database Tech Equities category average in those periods.

Meanwhile, the Global X Artificial Intelligence & Technology ETF (AIQ) launched in 2018. The fund charges a 68 bps fee, like THNQ’s, to track the Indxx Artificial Intelligence Big Data Index. That index invests in developed market firms tied to AI and AI advancements. In doing so, AIQ has returned 30.2% YTD per ETF Database and 35.2% over the last three years.

That long-term performance of both of those strategies speaks to their indices and their starring role among other thematic ETFs. THNQ specifically intrigues by avoiding the biggest tech firms that would add that concentration risk. Together, as thematic ETFs grow, there are real opportunities to be found.