What makes thematic investing a strong alternative in volatile markets | Idea Farm

What makes thematic investing a strong alternative in volatile markets

Robeco

Yoram Lustig, Simon Lansdorp

Research

32 Pages

June 2025

Robeco analyzes how thematic investing can provide diversification and resilience during volatile markets by aligning with structural megatrends. The paper highlights how themes such as AI, sustainability, and demographic shifts create growth opportunities while allowing investors to avoid benchmark concentration risks.

Key Takeaways

Structural drivers: Thematic equity strategies linked to megatrends outperformed MSCI ACWI by ~250 bps annually since 2000.

Diversification edge: Themes reduce reliance on cyclical drivers, providing differentiated returns across geographies and sectors.

Active advantage: Actively managed thematic assets reached €648B, over 3x passive strategies, highlighting demand for dynamic allocation.

Quantitative Investing

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