Global Thematic Fund Landscape 2025

Morningstar

Kenneth Lamont

Research

63 Pages

The Global Thematic Funds Landscape report provides in-depth insights into evolving investment themes—from supply chain dynamics to the rise of actively managed funds. Thematic funds are reshaping portfolios worldwide, with assets reaching a three-year high of USD 779 billion in Q3 2025. While Europe remains the largest market—holding 44% of global assets—its share has dipped below 50% for the first time in a decade due to slower recovery and persistent outflows. In contrast, the US and China are fueling robust growth, with US assets up 50% in three years (driven by active ETFs) and China lifting the Rest of World’s share to 32%.

Source: Morningstar Direct. Data as of Sept. 30, 2025.
Source: Morningstar Direct. Data as of Sept. 30, 2025.

Key Takeaways

Global market reset: Global thematic assets have rebounded from the postpandemic correction yet still signal a maturing market rather than runaway growth.
Regional contrasts matter: United States, Europe, Canada, and China driven markets favor different themes and vehicles, shaping investor experience and capacity for flows.
Use care in portfolios: Growth heavy, higher fee profiles and low long run success rates suggest thematic funds fit best as satellite exposures.
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