If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit. You can address water scarcity. Or back green energy efforts. Or apply a “gender lens” to your portfolio so that it embraces efforts specific to women and girls. Today, there are more of these issue-specific investments than ever before. We can help you identify the funds targeting your desired outcomes.
Thematic investing, like other forms of sustainable investing, allows you to support issues you care about while also pursuing investment returns.
Trends in thematic investing
Thematic investing strategies have the potential to profit from a broad range of social, economic and environmental trends. These include:
- Population growth
- Emerging market growth
- Aging populations
- Technology breakthroughs
- Natural resource depletion
- Climate change
- Evolution of the global financial system
There are several sustainable themes that are well-positioned to take advantage of these trends: renewable energy, water, healthcare, clean technology and waste management.
Popular sustainable investing themes in Europe
Eurosif, 2018 European SRI Study
This pie chart illustrates the percentage of sustainable investment assets allocated to individual categories.
A deeper look: investing in environmental markets
The implications of population growth, rising pollution levels, deteriorating infrastructure and the depletion of the Earth’s natural resources can be felt globally. There is a growing demand for investment in clean energy, water infrastructure, sustainable agriculture and waste recovery, making investments in companies and funds that access these environmental markets attractive for financial return and sustainable impact.
*Source: Impax Asset Management
Water as an investment opportunity
The S&P Global Water Index has outperformed the broader market since its inception in November 2001.
Source: Morningstar, monthly returns from November 2001 to December 2018.
The S&P 500 index is a basket of 500 of the largest U.S. stocks, weighted by market capitalization. The index is widely considered to be the best indicator of how large U.S. stocks are performing on a day-to-day basis.
The S&P Global Water Index provides liquid and tradable exposure to 50 companies from around the world that are involved in water related businesses.
The MSCI ACWI is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International (MSCI), and is comprised of stocks from both developed and emerging markets.
This three-line graph, covering the period November 2001 to April 2018, traces the growth in value of the MSCI ACWI Index, the S&P 500 Index and the S&P Global Water Index.
Values Based Investing
Do you know what's in your portfolio? Are you investing in companies that align with your values and standards and avoiding those who do not? We can answer these questions and more.
Learn More(Video) How Key Private Investment Themes Will Shape Long Term Secular Trends | Private Bank | J.P. Morgan
Environmental, social and governance
In addition to helping you align your portfolio with your sustainable investing goals, ESG is also just good, smart investing. We can help you utilize this popular investment approach.
If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit.
Impact investing may be the most exciting of all the sustainable investing strategies. It‘s intended to generate measurable positive social or environmental impact alongside financial return. Learn more.
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We take a global approach to sustainable investing and the solutions offered through our Sustainable Investing Platform meet our internally defined criteria for a sustainable investment. Though we consider our internal criteria to be very thorough and selective, the evolving nature of sustainable finance regulations and the development of jurisdiction-specific legislation setting out the regulatory criteria for a “sustainable investment” mean that there is likely to be, in future, a degree of divergence as to the regulatory meaning of a “sustainable investment”. In particular, in the European Union, the Sustainable Finance Disclosure Regulation (EU) (2019/2088) (“SFDR”) prescribes certain criteria for a product to be classified as “sustainable” or having a “sustainable investment objective”. For further information on our products which promote environmental and/or social characteristics or have a sustainable investment objective within the meaning of Article 8 and/or 9 of the SFDR, please see our SFDR Art 8 and 9 Product Disclosures, available at:link.
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Sustainable investing (“SI”) and investment approaches that incorporate environmental social and governance (“ESG”) objectives may include additional risks. SI strategies, including ESG SMAs, mutual funds and ETFs, may limit the types and number of investment opportunities and, as a result, could underperform other strategies that do not have an ESG or sustainable focus. Certain strategies focused on particular sectors may be more concentrated in particular industries that share common factors and can be subject to similar business risks and regulatory burdens. Investing on the basis of sustainability/ESG criteria can involve qualitative and subjective analysis and there can be no assurance that the methodology utilized, or determinations made, by the investment manager will align with the beliefs or values of the investor. Investment managers can have different approaches to ESG or sustainable investing and can offer strategies that differ from the strategies offered by other investment managers with respect to the same theme or topic. ESG or sustainable investing is not a uniformly defined concept and scores or ratings may vary across data providers that use similar or different screens based on their process for evaluating ESG characteristics. Additionally, when evaluating investments, an investment manager is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could cause the manager to incorrectly assess an investment’s ESG/ SI performance.
J.P. Morgan takes a global approach to sustainable investing and the solutions offered through our sustainable investing platform meet our internally defined criteria for a sustainable investment. The evolving nature of sustainable finance regulations and the development of jurisdiction-specific legislation setting out the regulatory criteria for a “sustainable investment” or “ESG” investment mean that there is likely to be a degree of divergence as to the regulatory meaning of such terms. This is already the case in the European Union where, for example, under the Sustainable Finance Disclosure Regulation (EU) (2019/2088) certain criteria must be satisfied in order for a product to be classified as a “sustainable investment”. Any references to “sustainable investing”, “SI” or “ESG” in this material are intended as references to our internally defined criteria only and not to any jurisdiction-specific regulatory definition.
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Is thematic investing good? ›
Investing in thematic ETFs carries higher risks and, potentially, more lucrative rewards than the broader ETF space. Investors should be aware of the pitfalls to participating in these niche ETFs, but at the same time, if done carefully, thematic ETF investment can provide excellent returns.Who qualifies for the JP Morgan Private Bank? ›
Requirements for Private Banking
Clients with at least $10 million in assets can become J.P. Morgan private bank customers. 3 Its wealthy clients enjoy custom financial planning, goals-based investing and advice, cross-border wealth advisory, and more.
Thematic investing is an approach which focuses on predicted long-term trends rather than specific companies or sectors, enabling investors to access structural, one-off shifts that can chatnge an entire industry.What are the benefits of JP Morgan Private Bank? ›
Powerful mobile and online platforms for secure banking anytime, anywhere. Access to thousands of Chase branches across the country, and fee-free access to ATMs around the world. Dedicated J.P. Morgan team members and client service professionals who cover your entire relationship with J.P. Morgan.Which thematic fund is best? ›
|Fund Name||3-year Return (%)*||5-year Return (%)*|
|ICICI Prudential FMCG Direct-Growth||15.85%||14.15%|
|SBI Magnum COMMA Fund Direct-Growth||23.92%||12.84%|
|ICICI Prudential Exports and Services Fund Direct-Growth||20.98%||12.29%|
|Nippon India Quant Fund Retail Direct-Growth||17.59%||11.83%|
In summary, it can be said that for the same social effect, thematic investment suggests that it may be achieved in a diffuse and non-measurable way, whereas impact investment will prove it. These impact investments are not yet available to individuals because the associated risks are significant and multiple.How much money do you need for Morgan Stanley private bank? ›
There's a $100,000 minimum for most equity, balanced and fixed income accounts in Morgan Stanley's Fiduciary Services program. For most municipal bond, high yield and tax-efficient equity accounts, as well as financial planning services, there's a $250,000 minimum.How much money do you need to invest with J.P. Morgan? ›
An initial minimum deposit of $500 and a minimum balance of $250 is required to maintain a J.P. Morgan Automated Investing account. The initial minimum deposit amount must be made within 60 days.How much money do you need for a private bank? ›
Having at least $250,000 in investable assets is the minimum you'll need to qualify for private banking. But even if you have that kind of money, this service may not be right for you. There are several important caveats to the perks offered by private banking.What is thematic investing with examples? ›
Thematic investing involves centering an investment strategy on a defined long-term trend instead of buying into specific companies or industry sectors. Thematic investing is a long-term strategy and it capitalizes on opportunities in the market resulting from geopolitical, macroeconomic, and technological trends.
What is thematic investing ESG? ›
Themed investing allows investors to address ESG issues by investing in specific solutions to them, such as renewable energy, waste and water management, sustainable forestry and agriculture, health products and inclusive finance.What is thematic approach? ›
Thematic approach is the way of teaching and learning where many areas of the curriculum are connected together and integrated within a theme thematic approach to instruction is a powerful tool for integrating the curriculum and eliminating isolated and reductionist nature of teaching it allows learning to be more ...Is J.P. Morgan a good investment company? ›
The bottom line: J.P. Morgan Self-Directed Investing is a clear-cut investment platform that is great for beginners looking to learn how to buy and sell investments. More advanced investors, however, may find it lacking in terms of available assets and tools.Who has the best private bank? ›
J.P. Morgan Private Bank – $10 million
According to Global Finance, the institution has ranked as the “Best Private Bank in the World” for three consecutive years (2020-2022).
JPMorgan provides financial services to consumers, small businesses, large corporations, governments, and other clients. Its Consumer & Community Banking segment is the largest source of revenue. The Corporate & Investment Bank segment is the largest source of net income.How many thematic ETFs are there? ›
Theme Investing ETF Overview
With 311 ETFs traded on the U.S. markets, Theme Investing ETFs have total assets under management of $106.66B. The average expense ratio is 0.62%. Theme Investing ETFs can be found in the following asset classes: Equity.
|Fund Name||3-Year Return (%)*|
|Tata Digital India Fund Direct-Growth||28.17%||Invest|
|ICICI Prudential Technology Direct Plan-Growth||30.16%||Invest|
|Aditya Birla Sun Life Digital India Fund Direct-Growth||28.43%||Invest|
|SBI Technology Opportunities Fund Direct-Growth||25.82%||Invest|
- Parag Parikh Long Term Equity Fund.
- UTI Flexi Cap Fund.
- Axis Midcap Fund.
- Kotak Emerging Equity Fund.
- Axis Small Cap Fund.
- SBI Small Cap Fund.
- SBI Equity Hybrid Fund.
- Mirae Asset Hybrid Equity Fund.
Other studies have found that ESG investments can outperform conventional ones. JUST Capital ranks companies based on factors such as whether they pay fair wages or take steps to protect the environment.What are the 4 strategies of sustainable investing? ›
- Clarify Your Motivations and Investment Philosophy. ...
- Identify Your Implementation Approaches. ...
- Define Your Investment Strategy. ...
- Design Your Operational Model.
Is ESG investing profitable? ›
69% of frequent investors classed ESG investments as “very profitable” or “somewhat profitable”. Actual studies of returns from ESG and non-ESG portfolios have yielded mixed results.Do rich people use private banking? ›
Where Do Millionaires Keep Their Money? Statistics on millionaires show that rich individuals tend to turn to private banks to safeguard their financial assets. These institutions provide a broad range of financial products, services, and knowledge under one roof.Is 10mm enough to retire? ›
This is a question that many people ask themselves as they approach retirement. The simple answer is yes. You can retire on 10 million dollars. However, there are a few things to consider before making this decision.Who is the best wealth management firm? ›
|3||State Street Global||$2,517.9|
Is Chase Private Client worth it? The invitation-only Chase Private Client can be worth it if you have at least $150,000 in liquid assets. Because your bank deposits will earn minimal interest, Private Client can be worth it if most of your balance is with You Invest℠ by J.P. Morgan.How much do you need to be a private client? ›
The minimum amount varies — $1 million is most likely the minimum for most private banks, Foy says. But there are some exceptions. For instance, Chase Private Client requires customers to keep a $150,000 worth of deposits and/or investment.How much do J.P. Morgan Advisors charge? ›
|MFAP, CSP, JPMCAP, J.P. Morgan Guided Annuity Program and Advisor Program Fee Schedule|
|$0 - $250,000||1.45%|
|$250,000 - $500,000||1.30%|
|$500,000 - $1,000,000||1.15%|
|$1,000,000 - $2,000,000||1.00%|
Do I have to invest a certain amount? The minimum investment for Morgan Stanley Access Investing is $5,000. If you plan to open a tax-advantaged account such as an IRA, please consider the IRS's annual contribution limits, which you can view on the IRS website.What are the disadvantages of private bank? ›
The majority of accounts in private banking do not carry FDIC insurance. This means the investors could lose everything in the account to bad portfolio management and poor stock choices. Aggressive management by a savvy private banker can provide massive financial gains for investors.How much do I need to invest with Goldman Sachs? ›
As noted above, clients must generally have a minimum of $10 million in investable assets to open an account.
What is a thematic portfolio? ›
Thematic investing involves creating a portfolio (or portion of a portfolio) by gathering together a collection of companies involved in certain areas that you predict will generate above-market returns over the long term. Themes can be based on a concept such as ageing populations or a sub-sector such as robotics.What is thematic Advantage fund? ›
The primary objective of the Scheme is to generate capital appreciation primarily from a portfolio of Sectoral/ Thematic schemes accessed through the diversified investment styles of underlying schemes.What is a thematic stock? ›
Thematic stock lists are groups of stocks related to an idea or trend. For each theme, we use proprietary research and technology to select stocks that collectively relate to a trend, market insight, or innovation.Which one is a thematic fund? ›
Thematic Funds are the kind of mutual funds that are invested in stocks of a particular theme. This theme could be anything - international stocks, multi-sector stocks, commodity stocks, rural India, infrastructure stocks, etc.What is a thematic ETF? ›
A thematic ETF is a fund that offers the opportunity to invest based on a particular theme, such as climate change or artificial intelligence. The ETF then holds companies that should benefit from that trend.What is thematic sourcing? ›
Thematic Sourcing: An Innovative Approach to Finding the Best Deals. With thematic sourcing, or thematic investing, firms and investment banks formulate their sourcing strategy around a particular niche and/or long-term global trends that will reshape society.What are the disadvantages of thematic approach? ›
- Subjects lose their identity (math time, science time, etc.)
- Some students could lose interest in the theme - less motivation to participate.
- Student missing a day misses a major connection.
- Finding enough resources for research.
- Research takes A LOT of class time.
- MORE WORK for the teacher - no pre-made basal program.
Education.com defines a thematic approach as a “teaching approach that organizes subject matter around unifying themes.” Each subject area is brought together under the banner of a certain topic, such as bugs, dinosaurs or castles.
|Online trades||Call-in trades|
|U.S. listed stocks & exchange-traded funds||$0.00 / Trade||$25.00 / Trade|
|Options||$0.00 / Trade + $0.65 / Contract||$25.00 / Trade + $0.65 / Contract|
|Mutual Funds||$0.00 / Transaction||$20.00 / Trade Transaction|
JPMorgan's earnings were weighed down by sinking stock prices, slower investment banking activity and a softer market for home loans. It is feeling the effects of interest rate increases the Federal Reserve is making to combat steep inflation, which has roiled financial markets.
How do you qualify for Chase Private Client? ›
To qualify as a Chase Private Client you need to have a daily average of $150,000 in Chase investments and accounts. You can also gain access to Chase Private Client benefits if you share an account with an immediate family member who is a Chase Private Client.What bank do billionaires use? ›
Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultra-rich, such as personal bankers, waived fees, and the option of placing trades. The ultra rich are considered to be those with more than $30 million in assets.Which is the No 1 private bank in world? ›
|Rank 2019||Rank 2018||Bank name|
Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.What is the most trusted bank? ›
The Lifestory Research 2022 America's Most Trusted® Bank Study found Chase the most trusted bank. The America's Most Trusted® Study is a large-scale survey of consumers in the United States that seeks to identify the brands that people trust the most within their respective industries.Why do people use private banks? ›
Some might use a private bank because they consider it to be prestigious; some might want the high-class service; while others like the perceived discretion. As the word "private" implies, this type of bank has long held a reputation for privacy and secrecy.Why J.P. Morgan was awarded the Best private bank in 2021? ›
Financial Performance: sustained build-up of AUM
JPMorgan's Private Bank has registered strong financial performance in 2021 with global segment revenues increasing 17% year-on-year to USD $7.7 billion driven by lending, annuity, and transactional investment.
Thematic investing involves centering an investment strategy on a defined long-term trend instead of buying into specific companies or industry sectors. Thematic investing is a long-term strategy and it capitalizes on opportunities in the market resulting from geopolitical, macroeconomic, and technological trends.What is thematic investing ESG? ›
Themed investing allows investors to address ESG issues by investing in specific solutions to them, such as renewable energy, waste and water management, sustainable forestry and agriculture, health products and inclusive finance.What are thematic stocks? ›
Thematic stock lists are groups of stocks related to an idea or trend. For each theme, we use proprietary research and technology to select stocks that collectively relate to a trend, market insight, or innovation.
What is a thematic fund? ›
Thematic Funds are the kind of mutual funds that are invested in stocks of a particular theme. This theme could be anything - international stocks, multi-sector stocks, commodity stocks, rural India, infrastructure stocks, etc.What is thematic Advantage fund? ›
The primary objective of the Scheme is to generate capital appreciation primarily from a portfolio of Sectoral/ Thematic schemes accessed through the diversified investment styles of underlying schemes.What is a thematic ETF? ›
A thematic ETF is a fund that offers the opportunity to invest based on a particular theme, such as climate change or artificial intelligence. The ETF then holds companies that should benefit from that trend.What is thematic sourcing? ›
Thematic Sourcing: An Innovative Approach to Finding the Best Deals. With thematic sourcing, or thematic investing, firms and investment banks formulate their sourcing strategy around a particular niche and/or long-term global trends that will reshape society.What are thematic strategies? ›
“Thematic investing” refers to strategies through which investors can invest in long- term ideas and trends, allowing them to capture potential opportunities created by the impact of economic, technological, and social changes.What is a thematic index? ›
A thematic index represents the performance of companies associated with particular structural themes, trends and concepts. Concepts that are likely to shape the future of economies and societies in the decades to come and may also dominate the investment opportunity set in the medium- to long-term.What is the difference between impact investing and ESG? ›
ESG looks at the company's environmental, social, and governance practices alongside more traditional financial measures. Socially responsible investing involves choosing or disqualifying investments based on specific ethical criteria. Impact investing aims to help a business or organization produce a social benefit.How many thematic ETFs are there? ›
Currently there are 8,966 ETFs globally, with a combined total of roughly $9 trillion assets under management (AUM).What is the best performing ETF? ›
- ProShares Ultra Bloomberg Natural Gas ETF (BOIL): +270%
- United States Natural Gas Fund LP (UNG): +145.9%
- ProShares Ultra Oil & Gas ETF (DIG): +96.6%
- Direxion Daily Energy Bull 2x Shares (ERX): +95.3%
- Direxion Daily S&P Oil and Gas Exploration & Production Bull 2x Shares ETF (GUSH): +92%
Thematic Investing: Megatrends
Active and Index Megatrend Funds provide unconstrained access across different sectors, geographies, and market cap sizes and companies set to benefit from global structural change.
What is the difference between thematic and sector funds? ›
Sectoral funds invest in a specific sector like pharma, banking, real estate, etc. On the other hand, thematic funds invest in a theme that is about an idea or a goal encompassing multiple sectors. Both funds are high-risk-return equity funds where thematic funds offer slightly higher diversity than sectoral funds.Which is the best bank for mutual fund? ›
|SBI Banking & Financial Services Regular Growth||9.34%|
|Aditya Birla Sun Life Banking & Financial Services Regular Growth||0.71%|
|ICICI Prudential Banking and Financial Services Fund Growth||-0.67%|
|Edelweiss Banking and PSU Debt Fund Regular Growth||10.36%|
Sector mutual funds invest a minimum of 80% of their assets in a particular sector as per SEBI's guidelines.