Top Trends of 2024: High-Yielding ETFs for Maximum Gains Now
In the dynamic world of investing, the pursuit of high-growth megatrends is an enticing proposition. However, it's essential to approach this endeavour with caution and analysis.
For those seeking to invest in ETFs, the top megatrends for 2025 include Artificial Intelligence (AI), clean energy and climate-focused sectors, digital technology, healthcare, and emerging markets such as China tech and India [1][2][4]. Japan's ETF market reforms in 2025 are expected to provide easier access to Asia's high-growth tech sectors, including products like the Global X China Tech Top 10 ETF [1].
Historically, thematic ETFs aligned with these megatrends have delivered solid returns compared to general market indices. For instance, Cathie Wood's ARK Tech ETF, representing innovation-driven companies, returned approximately +26.45% in 2025 (Jan–July) [3]. Region-specific or thematic ETFs, like those focused on Greece or Indian equities, have also outperformed broader markets, with returns exceeding +50% and strong sustained growth [4].
Investing in thematic ETFs instead of individual stocks within a megatrend can potentially protect investors from fraud allegations, as demonstrated by the case of Microstrategy. Thematic ETFs enable investors to be part of various megatrends without the risk of investing in a single company that might face such issues [5].
However, it's important to note that not all trend ETFs may deliver successful returns. The price of former megatrend ETFs has significantly depreciated, making them current losers by volume in ETF inflows. Caution and analysis are crucial when investing in trend ETFs [6].
One example of a thematic ETF is the Xtrackers Artificial Intelligence and Big Data UCITS ETF, which investors can use to cover the AI megatrend. Another thematic ETF investors are interested in is the First Trust Nasdaq Clean Edge Smart Grid Infrastructure UCITS ETF, which focuses on the power grids megatrend [5].
Investors should remember that while thematic ETFs can be more volatile due to concentration in sectors, their structure helps mitigate stock-specific risks and reduces the complexity for investors needing thematic exposure [2]. ETFs provide diversification and lower risk compared to investing in individual stocks within these sectors.
In conclusion, thematic ETFs offer a favoured approach for gaining exposure to high-growth megatrends while managing risk. However, investors should always exercise caution and analysis before investing in trend ETFs, keeping in mind the potential risks associated with these investments. The former megatrends of 2020/21 have significantly depreciated in price, serving as a reminder of the volatile nature of these investments.
In the realm of thematic investing, the Xtrackers Artificial Intelligence and Big Data UCITS ETF allows investors to capitalize on the artificial-intelligence megatrend. Additionally, the First Trust Nasdaq Clean Edge Smart Grid Infrastructure UCITS ETF offers an opportunity for investors to invest in the power grids and clean energy sectors, two megatrends identified for 2025 in the dynamic world of finance and investing.
