Themes
Indices built around a theme
A thematic index groups companies around an idea — clean energy, cybersecurity, robotics — instead of a country. The CFD follows that basket's level. You get the theme in one ticket, and you still carry the concentration of whatever the theme is doing.
01 — Themes
A story, packaged
The index methodology decides the members. If the theme is narrow, a few companies dominate the move.
Open account
02 — Themes
Different from a sector ETF
A thematic index is a level you trade. An ETF is a fund with its own premium and fee. Check which symbol you opened.
Open account
03 — Themes
Crowding
Popular themes move together. A position here may not diversify a tech-heavy book.
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04 — Themes
Rebalance days
When members are added or removed, the level can jump for reasons that are not 'the market'.
Open accountTheme proxies
Sector and theme funds people use when the view is an idea, not a country.
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- Not a country
- Theme
- Several names
- Basket
- Long or short
- CFD
- P&L currency
- USD
A story, packaged
The index methodology decides the members. If the theme is narrow, a few companies dominate the move.
Different from a sector ETF
A thematic index is a level you trade. An ETF is a fund with its own premium and fee. Check which symbol you opened.
Crowding
Popular themes move together. A position here may not diversify a tech-heavy book.
Rebalance days
When members are added or removed, the level can jump for reasons that are not 'the market'.
When a theme is the right tool
Use it when your view is about the idea, and you do not want to manage each company.
- You think spending on a technology rises, but you will not pick the winner.
- You want to short a crowded story without listing every name.
- You already understand the benchmark index and want a slice of it.
- You have read which names have the largest weights.
When it is the wrong tool
A theme feels diversified and often is not.
- Three companies can be half the basket.
- The theme can lag the broad index for years.
- Liquidity in the CFD may be thinner than US 500.
- Leverage on a concentrated basket is still leverage.
01
Name the idea
Write down the theme in one sentence before you search the symbol.
02
Check the weights
On the desk, see which names drive the index. If one name is the story, consider the share instead.
03
Compare with the benchmark
If your view is really 'stocks go up', the broad index is the cleaner trade.
FAQ
Are these the same as the big indices?
No. US 500 is a broad market. A thematic index is a curated slice and can diverge for long periods.
Do I own the member companies?
No. You trade the index level as a CFD.
Why is the spread wider than the US 500?
Narrower baskets are less liquid. The spread is the cost of that.